Moody’s Investors Service: 2018 NFP & Public Health Care Outlook Dips to Negative

Moody’s Investors Service revised its 2018 outlook for not-for-profit and public health care from stable to negative, according to its recent report. It based its revision on its projections that operating cash flow will contract by 2-4 percent over the next 12-18 months.   Revenue growth is under pressure because of very low reimbursement rate […]

Do Your ACO’s Provider Distributions Need to Be at Fair Market Value?

by William Hamilton, Manager

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Accountable Care Organizations (“ACOs”) receive a substantial portion of their revenue through shared savings programs in which payers pay the ACO a portion of total cost savings generated by member providers through effective care management. The ACOs then distribute part of the shared savings to participating healthcare providers, based on a distribution formula; the remainder […]

Bolstering Your Strategic Plan

(Source: Veralon, a healthcare consulting company providing services in strategic planning, mergers & acquisitions, healthcare valuation and physician compensation, and clinical transformation and value-based payment. Dan Grauman, an iProtean expert who appears in many iProtean courses, is the managing director and CEO.)   In addition to setting direction for the organization, a strategic plan must […]

What Does Tax Reform Portend for Hospitals?

Although the final form of the tax bills in Congress has not been determined, it appears that discussion is progressing quickly. As it stands now, the final tax bill could affect not-for-profit and for-profit hospitals very differently, according to the Healthcare Financial Management Association.   The Senate’s version of the bill would repeal the Affordable […]

Advanced Practice Clinicians: About More Than Savings

by Rudd Kierstead, Principal

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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 […]

Administration Slows Shift to Value-Based Payments

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 […]

Final OPPS Rule Has Significant Financial Impact on Hospitals

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 […]

Experts Assess Strategies for Boards Leading Through Transition

(A preview of iProtean’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 to start. But going […]

Potential Challenges to Tax-Exempt Status for NFP Hospitals

“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 […]