Cigna teams with CVS Health in collaboration to rival urgent care clinics

http://www.healthcarefinancenews.com/news/cigna-teams-cvs-health-collaboration-rival-urgent-care-clinics?mkt_tok=eyJpIjoiTXpVelkyRXhZMkpqTmpKaSIsInQiOiJFVjFscVRVVDdXZmZqek02STNMSVNjelwvREEwMmZmckZrWmNyZjNrQnVcL0szTGZuNXA4ZGdrOGRhT1V5bnREanBwWitPbTNkQllLZW5BTmd4VDk5TDg0ak1NNStnTllqdEllQlNpQmRZbDUwcm5JdVNaZ1lJcmpVVXJNYWxcL0JcL28ifQ%3D%3D

Roughly 45 percent of urgent care facility visits by Cigna members could be conducted at retail healthcare clinics, insurer says.

Cigna expects to save money on urgent care and emergency room visits through a new collaboration with CVS Health called Cigna Health Works..

In June, the insurer and CVS Health announced the initiative for Cigna’s self-funded employer-sponsored health plans.

Retail pharmacies are competing against traditional providers by offering convenient walk-in clinics.

Cigna Health Works offers patients an alternative to urgent care and emergency room visits, the insurer said. Roughy 45 percent of urgent care facility visits by its members could be conducted at retail clinics, potentially reducing healthcare costs by 81 percent per visit, Cigna said.

The collaboration aligns Cigna-administered health benefits with CVS Pharmacyand CVS MinuteClinic retail healthcare services.

“This new model is based on how the customer wants to consume health care — it’s about creating value and a new way for healthcare consumers to get more from their health plan, by ensuring that we are there for them at the places they prefer to go for convenient care,” said Michele Paige, vice president and general manager of Cigna Onsite Health.

“As the popularity of retail health care continues to rise, Cigna Health Works is designed to help improve healthcare quality and address potential gaps in care. In some markets, up to one-third of Cigna customers have used some form of retail health care within a year’s time.”

Cigna Health Works can help patients who do not have a primary care doctor to find one by providing a list of Cigna-contract physicians from the health plan’s provider network.

CVS MinuteClinic nurse practitioners can offer pre-diabetic health screening, acute episodic care at discounted rates, as well as low cost A1C blood sugar testing, with the drugs available at CVS.

The nurse practitioner can ensure that an electronic record of each visit to CVS MinuteClinic is sent to the PCP‘s office.

“This new level of collaboration with Cigna is a part of the growing trend toward consumer-directed care,” said Helena Foulkes, president of CVS Pharmacy. CVS Health, a pharmacy benefit manager, has nearly 9,700 retail locations and more than 1,100 walk-in medical clinics nationwide.

It is among the country’s top pharmacies that also include Walgreens, Walmart, Rite Aid and Kroger.

In November, CVS Health partnered with OptumRx, UnitedHealth’s pharmacy benefit manager business. OptumRx consumers are able to fill 90-day prescriptions at CVS for prices that compete with  home delivery copays.

Walgreens formed a similar deal with OptumRx.

Cigna Health Works beneficiaries get personalized pharmacy support through Health Tag Messages on the prescription bag to advise patients of needed health actions by the pharmacist or clinician, and provide information on available Cigna health and wellness coaching services included in their Cigna plan at no additional cost.

They get contracted discounts at CVS MinuteClinic for select preventive and acute care, including biometric screenings for blood pressure, cholesterol and blood sugar as well as diagnosis and treatment for minor illnesses such as bronchitis, ear infections and strep throat.

Consumers get an exclusive 20 percent discount on CVS health brand over-the-counter products through the CVS ExtraCare Health card. This program can be coupled with Cigna 90 Now, which offers 90-day refills for maintenance prescriptions to help improve patient adherence to their medication regimen.

The personalized health and wellness program is being offered in select markets for U.S. Cigna-administered employer-sponsored medical plans.

Dirty, Dingy Hospitals: Doctors Blame Debt-Fueled Takeovers

https://www.bloomberg.com/news/articles/2017-06-01/dirty-dingy-hospitals-doctors-blame-debt-fueled-takeover-boom

There are two groups Community Health Systems Inc. can’t push too far: the doctors at its hospitals, and the debtholders it owes billions of dollars. Right now, the creditors are winning, and the doctors aren’t happy.

In Fort Wayne, Indiana, the rancor about Community’s neglect of a local health system has gotten so bad that a group of doctors tried to get rid of corporate ownership and buy the company out. And 1,500 miles away on the island of Key West, Florida, doctors say patients are being overcharged so that Community, sometimes called CHS, can rake in cash.

The two locations are among Community’s most lucrative, and their conflicts are part of the flip side of an industrywide acquisition binge over the last decade. For-profit hospital chains like Community borrowed billions to snap up rivals, facing massive debt reimbursements just as the benefits of the Affordable Care Act, known as Obamacare, began to wane.

“I understand that they have billions in debt and may need to take money from this chain to service it,” said William Pond, an anesthesiologist at one of the Fort Wayne hospitals and president of the county health department’s executive board. “But it’s very disappointing to see the course that CHS is taking and the devastating effect they’re having on our community.”

Once the biggest U.S. for-profit hospital chain, Community is selling off other, poorly performing facilities to pay off $2 billion of its $15 billion in debt. Yet even as the company skimps on spending and patient satisfaction lags at key facilities like Fort Wayne, its bonds are rising in value — an indication that debtholders are betting that the chain will make a financial turnaround.

The company’s $3 billion of 6.875 percent bonds due February 2022 have gained almost 30 percent this year and were changing hands at 89 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The debt still trades at yields about 8 percentage points more than government debt.

If the chain can’t subdue the unrest at its most profitable locations, it’s not clear how successful the turnaround will be. Indiana and Key West represent just nine of Community’s about 150 hospitals, yet they contribute an estimated 16 percent of the company’s adjusted earnings before interest, taxes, depreciation and amortization, according to Mizuho Securities analyst Sheryl Skolnick.

CHS records $199M net loss, says divestiture spree is over

http://www.beckershospitalreview.com/finance/chs-records-199m-net-loss-keeps-focus-on-performance-improvement.html

OR Efficiencies

Franklin, Tenn.-based Community Health Systems posted a net loss of $199 million in the first quarter after recording net income of $11 million in the same period of the year prior.

CHS said revenues dipped to $4.49 billion in the first quarter of this year, down from $4.99 billion in the same period of 2016. The decrease in revenue was attributable, in part, to lower patient volume. On a same-facility basis, admissions were down 1.5 percent in the first quarter of this year. When adjusted for outpatient activity, admissions decreased 1.4 percent year over year.

Although CHS kept operating expenses in check in the first quarter, one-time charges took a toll on the company’s bottom line. CHS said its first-quarter financial results included $250 million in impairment charges and losses related to the sale of some of its hospitals.

Commenting on the company’s financial results, CHS Chairman and CEO Wayne T. Smith said, “We are focused on performance improvements that we believe will yield additional efficiencies as we move through 2017. At the same time, we are making progress with our portfolio rationalization strategy as we work to create a stronger, more sustainable company for the future and further reduce our debt.”

To improve its finances and reduce its nearly $15 billion debt load, CHS put a turnaround plan into place last year. As part of the plan, the company is selling off 30 hospitals, which includes 11 hospitals it divested this week. Twelve other transactions are under definitive agreement and seven are under letter of intent, Mr. Smith said on a first quarter earnings call Tuesday.

“We’re about finished with our divestiture process, this 30 just about lines it up,” said Mr. Smith. “There may be one or two more, but we are not specifically thinking about doing anything significant for the rest of the year.”

 

Moody’s maintains stable outlook on for-profit hospital sector

http://www.beckershospitalreview.com/finance/moody-s-maintains-stable-outlook-on-for-profit-hospital-sector-033117.html

OR Efficiencies

Moody’s Investors Service has maintained its stable outlook on the U.S. for-profit hospital sector for 2017, as it expects higher reimbursement rates from private payers to drive revenue growth.

Over the next 12 to 18 months, Moody’s expects for-profit hospitals to benefit from a 1 to 2 percent rise in patient volumes. The debt rating agency said the increase will be driven by higher demand for healthcare services due to decreasing unemployment and an aging population. However, programs that aim to reduce utilization and cost of care will offset this positive trend, according to Moody’s.

The debt rating agency expects higher private payer rates to drive revenue growth at for-profit hospitals. Moody’s said this growth will be constrained by cuts to laboratory and outpatient reimbursement and reduced Medicaid disproportionate share hospital payments.

“Positive same-facility revenue growth and flat margins drive our stable outlook for the U.S. for-profit hospital sector,” said Moody’s Senior Vice President Jessica Gladstone. “Margins will hold steady as company-specific actions offset multiple industry challenges, including higher wage and benefits expense stemming from nursing shortages and increased physician employment.”

Many for-profit hospital operators are divesting less-profitable facilities and integrating acquisitions, which will benefit their margins, according to Ms. Gladstone.

Indiana woman released from Cancún hospital after paying $67k toward bill

http://www.beckershospitalreview.com/finance/indiana-woman-released-from-cancun-hospital-after-paying-67k-toward-bill.html

Earlier this week, Gabriela Martínez Hernández, a lawyer for Amerimed Cancún Hospital, issued a statement saying the hospital “never has, and never will, refuse to release a nonpaying patient for financial reasons. It is unethical and against the law.”

Amerimed Cancún Hospital is part of Amerimed Hospitales, a chain of private hospitals throughout Mexico. Two of the system’s facilities in Los Cabos were closed down by Mexican officials earlier this year due to predatory business practices and billing.

Envision Healthcare in talks to merge with AmSurg: sources

http://www.reuters.com/article/us-amsurg-m-a-envision-idUSKCN0YU2LV?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=30430897&_hsenc=p2ANqtz-8JZ-oeuVlMXMiP4P4bUC71sk6AVmpd89x3xK7r7OkRkM3ABpIu7Mz1x-TwwYl-LRRVrtN0_eN3moZbs5m_IgwV_J25Gg&_hsmi=30430897

AmsurgEnvision Healthcare

Envision Healthcare Holdings Inc (EVHC.N) is in advanced talks to merge with AmSurg Corp (AMSG.O), in a deal that would combine two of the largest U.S. outsourced physician services providers, people familiar with the matter said on Wednesday.