The shift to value-based purchasing and away from reimbursement based on volume requires hospitals and health systems to transform their processes and capitalize on opportunities in the changing competitive landscape. The Healthcare Financial Management Association (HFMA) calls this “strategic agility” and recently released an educational report that identifies characteristics of strategic agility. (Heeding the Call […]
Last week’s blog introduced Moody’s Investors Service Pursuit of Value paper (Lisa Goldstein, Special Comment: Pursuit of Value, May 8, 2013), and focused on the four key components a hospital/system must exhibit to create value: Achieving breakeven performance with Medicare rates Building scale through non-traditional methods Improving patient experience Cultivating informed leadership This week, […]
“Healthcare reform is a federal mandate to replace an antiquated and unsustainable reimbursement system with a more rational payment system based on value,” writes Lisa Goldstein from Moody’s Investors Service in a recent Special Comment, Not-for-Profit Hospitals: The Pursuit of Value. Ms. Goldstein, an iProtean expert featured in many foundational and advanced iProtean courses, presents […]
Researchers and policy makers have been investigating whether the recent slowdown in health spending has resulted from structural changes in health care or from broader economic forces, specifically the recession in 2007 through 2009. A recent study by The Kaiser Family Foundation and the Altarum Institute assesses the correlation between health spending and the economy. […]
Many hoped that Congress and the White House would negotiate a combination of revenue increases and spending cuts that would replace the federal budget sequestration that took effect April 1. Sequestration mandates approximately $1.2 trillion in spending cuts over the next 10 years ($85 billion over the next six months). But legislators and the Administration […]
For this week’s blog post, we feature a recent update from DGA Partners in its New + Noteworthy feature. Dan Grauman, President & CEO of DGA Partners, appears in many of iProtean’s Finance and Mission & Strategy courses. We are on the road interviewing experts for several new advanced courses: Governance of Integrated Care […]
It seems hospitals have been in cost-cutting mode for many years, and still experts say that a significant amount of waste is inherent in our healthcare system. The healthcare environment—today and tomorrow—must find additional ways to bring down costs, and many agree that hospitals should use multiple strategies to attack different aspects of cost savings […]
Hospitals face a 2 percent reduction in Medicare payments as early as April 1 under sequestration—this could cost hospitals $3 billion and 73,000 jobs nationwide this year, according to iVantage Health Analytics. Hospitals, physicians and other providers are hoping that Congress will put together a solution to avoid the cuts before they are actually […]
Moving to risk-bearing, performance-based contracts may be outside the current experience of many hospitals. But given the changes today and on the horizon, providers must reduce their reliance on fee-for-service payment and begin to take on value-based contracts. “ . . . all hospitals and health systems must prepare for the rapidly approaching transformation. Status […]
Transitioning from volume-based to value-based payment for care won’t happen on a specific date. Hospitals have long been paid on a volume-based payment model, and will continue to operate in that model while the new value-based payment model comes into play. Lisa Goldstein noted in a recent iProtean course that “the biggest challenge facing health […]