Advanced practice clinicians are sometimes casually thought of as a cheaper alternative to physicians by healthcare administrators. In actuality, there are many compelling reasons to bring these clinicians into a practice; economics is not the whole picture. Many high-performing practices have found that advanced practice clinicians (APCs), including nurse practitioners (NPs), physician assistants (PAs), and […]
The Obama Administration used the Affordable Care Act (ACA) to advance value-based payments. The current administration, however, has been making a series of regulatory changes that “slow or shrink some of these initiatives and let many doctors delay adopting the new system.” Decreased incentives to participate in value-based care and a reduction in reimbursement […]
CMS’s final rule for the Hospital Outpatient Prospective Payment System (OPPS) will increase overall 2018 hospital OPPS payment rates by 1.35 percent, according to a CMS fact sheet. However, hospitals are expected to see financial losses from Medicare payment changes related to drugs and knee replacements under the rule finalized this week. According to […]
(A preview of iProtean, now part of Veralon’s upcoming course, The Board’s Role in Leading Through Transition, featuring Karma Bass and Marian Jennings) Innovative boards are paying attention to their-risk taking appetite. Hospital and health system boards traditionally have been very conservative organizations. It’s a strong history, and it’s a good place from which […]
“As the Trump administration moves to reform the federal tax code, the country’s tax-exempt hospitals are bracing for potential challenges to their not-for-profit (NFP) status, with billions of dollars in federal taxes at stake,” according to the Healthcare Financial Management Association (HFMA) in an article released last week. NFP hospitals face increased scrutiny from […]
If your organization is like most health systems and hospitals, your physician recruitment plan may be based on a less than complete picture of your existing physician base. Many medical staff recruitment plans do not consider the extent to which the organization’s physicians and their patients are making use of the organizations inpatient and ambulatory […]
The finances of acquired hospitals generally suffer for two years after mergers and acquisitions (M&A), according to a recent report from HFMA and the Deloitte Center for Health Solutions. M&A activity has increased significantly in the past decade, driven by the pursuit of economies of scale and the potential for reducing the cost of […]
Hospital systems and health insurers have very different financing structures. Hospital boards and executive management will want to consider the fundamental differences when considering whether to combine both organizations within the same larger health system. Briefly, the health system has these fundamental financial structure characteristics: Significant physical plant investment Fewer growth opportunities Higher margins, […]
A strategic plan provides a roadmap for where a hospital or health system will focus its efforts and resources. The plan must generate financial results required for long term success. Therefore, financial implications should be integrated throughout the planning process to focus on the initiatives that will have the most profound positive impact on the […]
Hospital inpatient drug costs have been rising and this will continue, but at a moderate pace due to public scrutiny of pharmaceutical companies’ drug pricing practices. Moody’s noted in a recent article that even at a slower rate of growth, “we expect rising drug costs will continue to challenge hospitals’ financial flexibility.” (“Not-for-profit and public […]