Financial Sustainability Report: July 2021

The July 2021 issue of the Financial Sustainability Report, sponsored by Kaufman Hall, includes an account of how one health system assessed the benefits and risk associated with moving its  340B covered-entity pharmacy enterprise to a Limited Liability Company. The issue also includes a commentary on CMS’s new Acute Hospital Care at Home program and a discussion of a new metric, equivalent net patient revenue (ENPR), which organizations can use to assess the relative value of proposed investments in alternative revenue sources.

Pharmacy Services and 340B

Weighing the feasibility of an LLC-owned retail pharmacy enterprise
By Nathan Hagen, Ian Macdonald, Linda  Tyler and Nancy Nickman
University of Utah Hospitals and Clinics (UUHC) in Salt Lake City performed research to assess the feasibility of moving its 340B covered-entity pharmacy enterprise to a Limited Liability Corporation (LLC), with a focus on risks that should be factored into the decision. Other organizations that are considering such a move could benefit from adopting UUHC’s assessment approach.

Physician enterprise

Maintaining the equilibrium of the physician enterprise amid rapid change is a matter of balance
Sponsored by Kaufman Hall
By Matthew Bates and David Masters
To ensure the proper functioning of the physician enterprise, hospitals and health systems must establish a balance among three dimensions: The clinicians’ productivity, the capacity to provide patients with access to care when they need it, and he volume of existing and potential patients in the market.

CMS hospital at home program

Commentary
Hospital care at home signifies an important innovation in acute care delivery
By Shawn W. Stack
Although the CMS Acute Hospital Care at Home program is still early in its development, early adopters show evidence of the program’s exciting promise, including positive impacts on health outcomes, an improved patient and provider experience, reduced cost of care and overall healthcare savings.

Strategic investment

ENPR: A metric for comparing alternative and top-line revenue strategies to enhance strategic growth
By Jami Youmans, MHA, Kyle Hathaway and Ryan Smith, CFA 
Health system CFOs today should be actively guiding their organizations toward strategic investments in alternative revenue sources that can strengthen the bottom line. An effective and relatable metric for evaluating such investments is equivalent net patient revenue (ENPR).