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dramatically saved the country from falling over the proverbial fiscal cliff
with a deal struck as the 2013 New Year’s ball descended in Times Square. Health
care benefited with a one-year delay in the scheduled 27 percent cuts to
Medicare physician payments. Meanwhile, HITECH stimulus funds are now flowing
freely to hospitals, many of which are sitting on huge cash reserves built with
the benefit of federal income exemptions. Obamacare remains one year away.
Healthcare finances appear rosy at the start of 2013.
fee-for-service incentives continue to promote wild spending concentrated in the
last six months of life. HITECH efficiencies in healthcare are a mirage. Neither
legislators nor technology has made a dent in the inefficient largess of
American health care. The country can simply no longer afford this system.
leaders need to conceive of some real solutions in 2013 before healthcare really
does go over the cliff. Unlimited fee-for-service payment is not viable and must
be reformed. The healthcare industry as a whole (patients, providers, and
insurers) must realize technology efficiencies that most other industries have
enjoyed for 10 to 20 years. Healthcare entities must become accountable for the
tax exemptions they receive, demonstrating return of those tax savings to
benefit taxpayers rather than sitting on huge cash reserves.
Without real healthcare
industry solutions, Medicare payment to physicians will be dramatically cut. The
federal government will stop throwing good money after bad in search of
technology efficiencies in health care. Hospitals serving large numbers of
patients without insurance will suffer the effects of $18 billion in payment
reductions under the Affordable Care Act from 2014 to 2020. Federal regulators
will vigorously seek recoveries under expanded healthcare fraud and abuse laws.
Eventually, legislators may be forced to reconsider the value of tax exemptions
in the healthcare industry.
The fiscal cliff
episode demonstrates the ultimate problem with American health care: the lack of
effective governance at all levels. The problem extends to all quarters:
Politicians break from the bitter rhetoric only long enough for the
grandstanding delay; hospital executives pad the hospital bank accounts and
their own wallets without effective oversight of their not-for-profit missions;
insurers inhibit technology efficiencies to ensure their own survival; and
patients expect limitless health care without having to pay for it.
To create effective
governance, patients, providers, insurers, and politicians need to exercise
control over health care in a fiscally responsible and ethical manner. All
parties need to participate, and in a vastly different way from how they are
Scott is a founding partner, Withrow,
McQuade & Olsen LLP, Atlanta.
Publication Date: Wednesday, January 02, 2013
Brian Kueppers, founder and CEO, Apex, discusses the importance of a robust patient payment strategy in boosting organization revenue and enhancing patient satisfaction.
Brian Grazzini, CFO, HealthPort, describes the importance of efficient and compliant information exchange and audit management in helping HIM staff spend less time on paperwork and more on mission-critical projects.
Cindy Matthews, executive vice president, Community Hospital Corporation, discusses how rural and community hospitals can use collaborative partnering to position for success through tough market conditions.
Rick Heise, senior vice president, revenue cycle, at Cerner Corporation, discusses the importance of integrating clinical and financial data to excel in health care’s changing payment environment.
Dale Hockel, senior vice president of operations, and Jim Fanelli, CFO, TriMedx, share strategies for elevating clinical engineering through innovative management programs.
Russ Graney, founder and CEO for Aidin, and John Laursen, head of business development for Aidin, share insights on how to improve care transitions between acute and post-acute care settings and incentivize high-quality patient outcomes.
Scott Elston, strategic accounts manager, GE Healthcare Services, describes how substantial cost reduction in health care requires rethinking business strategy and asset use.
Robert Williams, MD, director, Deloitte Consulting LLP, and Arielle Freiberger, product strategist, ConvergeHEALTH by Deloitte, explain how sophisticated retrospective, real-time, and predictive data analytics can inform decision making to reduce costs and improve care.
Stuart Hanson, director of business development (healthcare solutions) at Citi Retail Services, discusses how improving the payment experience can benefit consumers and healthcare providers.
Scott Schmidt, vice president, Cerner RevWorks, LLC, shares insights on best practices for maximizing a revenue cycle management partnership.
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Drive down costs while improving quality in a reform environment.
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