Hospital Independence Assessments

by Scott Stuecher, Manager

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Consolidation among healthcare providers has continued at a significant rate over the last decade. In 2005, 45% (2,220) of acute, non-federal community hospitals were independent; by 2015, the figure had fallen to 34% (1,677)[1]. Factors driving this consolidation have been well articulated and thoroughly examined, and include financial distress, competitive pressures, the challenges of success […]

Provider Hiring Cutbacks May Signal Response to Repeal and Replace

Provider hiring dipped in January, fueling speculation that “repeal and replace” efforts will affect hospitals’ and physicians’ financial health.   The totals for January, reported by the Healthcare Financial Management Association (HFMA), are as follows:   Hospitals—4,200 positions in January compared to 10,000+ jobs per month over the last two years Outpatient settings—11,000 in January, […]

Medicare Shared Savings Program 2015 Results and the Future of ACOs

by Idette Elizondo, Manager & Amanda Brown, Senior Associate

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To date, just under one-third of accountable care organizations (ACOs) have been eligible to share in savings.  This situation is changing somewhat as ACOs gain experience in managing populations of patients for high quality and low cost healthcare. As of 2016, nearly 50 percent of Medicare lives were covered in non-traditional arrangements, including Medicare Advantage […]

Proposed Rules on APMs Generate Concern from Policy Analysts

Physicians participating in many existing alternative payment models (APMs)—including most Medicare accountable care organizations (ACOs)—will not qualify to receive future Medicare pay increases under proposed rules issued by CMS last week.   The proposed rules would implement changes through the unified framework called the Quality Payment Program, which includes two paths: The Merit-based Incentive Payment […]

Jennings, Grauman Explain Bundled Payments

We recently interviewed Marian Jennings and Dan Grauman on bundled payments. What follows are excerpts from those interviews.   Dan Grauman: A bundled payment is a new payment mechanism called for in the Affordable Care Act, the Bundled Payment Care Initiative (BCPI). Essentially, it is a payment for a specific episode of care over a […]

Moody’s Releases 2014 Medians; Profitability and Growth Are Main Features

Not-for-profit hospitals and health systems healthcare medians for 2014 show improved profitability margins with balance sheet measures continuing their favorable trajectory, according to Moody’s Investors Service report on final medians for 2014.   The median highlights include:   Median annual revenue growth rate surpassed median expense growth rate by a wide margin in 2014. Median […]

Hospitals Continue Hiring Surge

Hospitals have added about 134,000 jobs in the last 12 months, according to seasonally adjusted figures in the monthly labor report for the Bureau of Labor Statistics. August employment grew by 16,000 workers, following July’s increase of 5,000 workers.   The healthcare sector in total added 41,000 jobs in August. Of these, a little more […]

CMS Extends Enforcement Delay of Two-Midnight Rule

Last week the Centers for Medicare and Medicaid Services (CMS) said it will extend the enforcement delay of its two-midnight policy until December 31, 2015. Beginning January 1, 2016, Quality Improvement Organizations (QIOs) and Recovery Audit Contractors (RACs) “will conduct patient status reviews in accordance with any policy changes finalized in the outpatient prospective payment […]