Accounting and Financial Reporting

Healthcare News of Note: Healthcare expenditures decrease seen with shared patient-clinician decision-making and racial or ethnic concordance  

Shared decision-making plays an imperative role in reducing health expenditures by more closely aligning treatment decisions with patient preferences and values. Extreme heat events could be responsible for $1 billion in healthcare costs each summer in the United States, according to a Virginia Commonwealth University study. The American Hospital Association urged the Senate HELP Committee…

Deborah Filipek July 28, 2023

The latest on hospital finances: Signs of improvement, but margins remain tight

Industry-level hospital financial insights reflect the mixed results of a recovery that’s in progress but is expected to be a long slog. In a 2023 midyear report (login required), Moody’s Investors Service noted that margins are below 3% for a third of the company’s rated hospitals. Before the pandemic, only about 6% had margins in…

Nick Hut July 27, 2023

A projected Medicare physician payment decrease spurs more calls to reform the system

Physician advocacy groups vehemently expressed concern about the financial consequences of CMS’s proposed rule for Medicare physician payments in 2024, intensifying a push to modify the payment system. At a time of elevated expenses in healthcare, total payments would be reduced by a projected 1.25% relative to 2023. That would follow a 2% decrease from…

Nick Hut July 24, 2023

House committee approves bill requiring national provider identifiers for off-campus outpatient departments

A bill with widespread support in Congress would affect hospital billing procedures at off-campus outpatient departments if it becomes law. The House Committee on Education and the Workforce on July 12 unanimously approved legislation called the Transparency in Billing Act, which states that starting in 2024, hospital claims for items and services furnished in off-campus…

Nick Hut July 19, 2023

Some of the best from HFMA’s Annual Conference in Nashville

Revisiting your investment strategy with Lisa Schneider of Russell Investments and PayMedix CEO Tom Policelli discusses why payment is so confusing for patients.

Erika Grotto July 17, 2023

Medicare outpatient payments to hospitals won’t rise considerably in 2024, according to a proposed rule

Medicare’s newly proposed outpatient payment update for 2024 is unlikely to be greeted with enthusiasm by hospitals. The update for items and services provided in the hospital outpatient or ambulatory surgical center setting would be 2.8%, mirroring the proposed change for inpatient payments. The base update would be 3%, with a statutorily required productivity adjustment…

Nick Hut July 14, 2023

Annual Conference: Healthcare entrepreneur Alex Oshmyansky describes his efforts to disrupt drug pricing

Arguably no segment of the healthcare industry is more susceptible to disruption than the market for prescription drugs, as Alex Oshmyansky, MD, PhD, made clear Wednesday morning during the closing session of HFMA’s Annual Conference. Oshmyansky spoke about his personal efforts to disrupt the pharmaceutical market in his role as co-founder and CEO of Mark…

Nick Hut June 28, 2023

MedPAC takes aim at the Medicare wage index and reiterates support for site-neutral payment

In its semiannual report to Congress, the Medicare Payment Advisory Commission (MedPAC) recommends significant changes to two key aspects of Medicare policy: the wage index and site-neutral payment. 1. A revamp of the wage index The wage index consistently generates concern among healthcare stakeholders, including in Medicare’s FY24 proposed rule for hospital inpatient payments. According…

Nick Hut June 22, 2023

Congress seems inclined to expand site-neutral payment policies in Medicare (updated)

Momentum is building in Congress toward expanding site-neutral payment in Medicare, a move that could reduce payments to hospitals by billions of dollars per year. A recent hearing, which lasted 5 ½ hours, focused on various ideas for promoting transparency and competition in healthcare. The hearing included references to 17 bills or discussion drafts, several…

Nick Hut May 12, 2023

New data on No Surprises Act arbitration cases show providers are faring well amid systemic challenges

Providers are having success at challenging out-of-network payment amounts under the No Surprises Act, at least when they can get their cases through the arbitration system. CMS published an update showing that between April 15, 2022, when the independent dispute resolution (IDR) portal opened, and March 31, arbitrators issued payment determinations in 42,158 disputes. Initiating…

Nick Hut May 2, 2023
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