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.
Maintaining the equilibrium of the physician enterprise amid rapid change is a matter of balance
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.
ENPR: A metric for comparing alternative and top-line revenue strategies to enhance strategic growth
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).
Moving a 340B covered entity’s pharmacy enterprise to an LLC may prove beneficial, but it requires a feasibility study
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.
Healthcare News of Note: National index shows denials are up 11% since the onset of COVID-19
Healthcare News of Note for healthcare finance professionals is a roundup of recent news articles: Denials are up since the onset of COVID-19, nonprofit hospitals’ community investing falls short, and pediatric clinicians use the EHR less than other clinicians.
Annual healthcare investor conference showcases the innovation taking place in the not-for-profit hospital industry
At the 2021 Not-for-Profit Health Care Investor Conference, health system executives and industry thought leaders described how hospitals are evolving to meet the needs of communities.
Healthcare providers face challenges implementing the latest Surprise Medical Billing Interim Final Rule
HFMA’s Shawn Stack reviews the key provider challenges introduced by the IFC interim final rule with comment period (IFC) that implements sections of the federal ban on surprise medical bills.
Healthcare News of Note: 23% of COVID-19 patients have a post-COVID symptom 30 days after first being diagnosed, large study finds
Healthcare News of Note for healthcare finance professionals is a roundup of recent news articles: Top symptoms affecting long-haul COVID-19 patients, positive findings about patient experiences at HOPDs and ASCs, and a survey showing favorable physician attitudes regarding telemedicine.
By adopting 4 models for managing risk, healthcare organizations can secure the foundation for value-based payment success
By adopting four models for optimizing costs, care delivery, the continuum of care and contracts under risk-based payment, health systems can create an integrated framework for guiding their value-focused strategy and focusing their efforts in risk-based contracting.
Hospital M&A volume remained slow in Q2, but revenue per transaction continued to surge
The COVID-19 pandemic appears to be curtailing the volume of hospital merger-and-acquisition activity, but deal size has grown significantly.