News Briefs: Medicaid DSH payment cut barely averted in September, still possible in November
Hospitals received a last-day reprieve from substantial cuts to Medicaid disproportionate share hospital (DSH) payments, with House leaders reversing course Sept. 30 and ushering through a six-week government funding package. Language in the bill ensured the start of a four-year Medicaid DSH cut amounting to $32 billion was pushed back from Oct. 1 to Nov.…
Hospital, physician advocates disagree over the role of physician-owned hospitals as policymakers ramp up focus
Hospital advocacy groups hope to stanch momentum that’s building in policy circles to increase the number of physician-owned hospitals. The American Hospital Association (AHA) and Federation of American Hospitals (FAH) issued a joint statement Oct. 18, saying permitting greater numbers of physician-owned hospitals (POHs) would have adverse effects on healthcare costs, access and quality. The…
In response to a congressional RFI, provider advocates give input on ways to bolster rural healthcare
Hospital and physician groups were among the respondents to a request by a key congressional committee for information on improving rural healthcare. In an RFI issued in September, the House Ways and Means Committee sought policy solutions for augmenting access to — and the quality of — healthcare in relatively remote areas. “The committee will…
Amid positive signs financially, hospitals continue to grapple with high costs in labor and other areas
The latest financial metrics for the hospital sector reflect a period of increasing stability but also sustained challenges. August financial data from more than 1,300 hospitals, as reported by Syntellis Performance Solutions, showed improvements in key metrics. The month-over-month increase in median operating margin was 3.5 percentage points, helping the year-to-date margin rise to 1.4%…
Hospitals push back on Senate report that calls out lack of spending on charity care
Not-for-profit (NFP) hospitals continue to be the subject of congressional scrutiny, with the chair of a key Senate committee issuing a report that questions whether they provide levels of charity care that are commensurate with their tax exemption. The report was released Oct. 10 by Senator Bernie Sanders (I-Vt.), chair of the Senate Health, Education,…
Healthcare labor union activity gains steam: The consequences for hospitals and health systems
Note: The lead section of this article was updated Oct. 16 with news of a tentative agreement between Kaiser Permanente and the unions. When around 75,000 staff at Kaiser Permanente went on strike for three days starting Oct. 4, they represented more than just the largest-ever labor stoppage in the healthcare industry. They also exemplified…
Is consolidation in healthcare the work of modern-day robber barons — or the result of overdue reengineering?
he most successful industrialists of America’s Gilded Age were often skewered by contemporary critics as being robber barons. A new generation of naysayers wants to recycle the old rhetoric, this time targeting organizations focused on healthcare: The critics’ clear message: Big money is helping healthcare get bigger, and it’s a bad deal all around. Many…
CMS pressures states to restore Medicaid coverage for some beneficiaries who have been disenrolled
CMS says a recent edict to state Medicaid programs has partially stanched the ongoing wave of disenrollments in the program, with about 500,000 beneficiaries set to regain coverage they had lost and “many” others protected from disenrollment going forward. As described in a Sept. 21 summary, 29 states plus Washington, D.C., have acknowledged a systemic…
OSF plans for value-based care in Medicaid
The majority (70%) of OSF HealthCare’s business is paid for by Medicare and Medicaid, prompting Mike Allen, FHFMA, MBA, the system’s CFO, to identify Medicaid as presenting the next big opportunity for assuming risk under a value-based care approach. “Trying to wade into a value-based agreement for the Medicaid population is not for the faint…
Published data quantify how cost increases will continue to affect the healthcare industry next year
The cost to treat patients will accelerate next year, with ramifications across the healthcare industry, according to newly published projections. PwC’s Health Research Institute reported that the cost of providing care will increase by 7% in 2024, up from a 6% increase this year and 5.5% in 2022. A 7% increase would tie 2021 for…