Hospital groups: ACA repeal may cost billions, jobs

http://www.healthcaredive.com/news/hospital-groups-aca-repeal-may-cost-billions-jobs/431786/

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Click to access impact-repeal-aca-report.pdf

Members of the Republican party have been attempting to repeal the ACA ever since the healthcare law was implemented in 2010. In the proposed ACA repeal-and-replace plans currently available, such a replacement plan may not come for up to three years, Kahn said. In addition, there still doesn’t seem to be a unified front on what that replacement would actually entail.

President-elect Donald Trump has said he would make repealing and replacing the healthcare law a top priority. However, HHS Secretary Sylvia Mathews Burrell has warned that getting rid of the ACA could potentially have dire consequences, including the estimated 22 million people that could be left without health insurance coverage. In addition, current repeal-and-delay plans could widely change the already fragile individual insurance markets.

The hospital groups sent a letter to Trump and members of Congress to urge any repeal bill include a simultaneous mechanism for replacement coverage. “We strongly believe that any repeal legislation must be accompanied by provisions that protect the coverage for those currently receiving such protection,” the letter noted. What would be “absolutely essential” to include would be to restore the Medicare and Medicaid payment cuts so that hospitals can provide the care that communities “both respect and deserve,” according to Tom Nickels, executive vice president of government relations and public policy at the American Hospital Association.

Hospitals were under the impression that they would be getting more insured patients, so they reasoned that the Medicare and Medicaid payment cuts that came with the ACA implementation were not necessarily going to have a major impact, both AHA President and CEO Richard Pollack and Kahn noted on the media call. Yet the payment cuts to hospitals that date back to 1997 with the Balanced Budget Act have caused hospitals to “cut back staff, services, education, research, investments in new technology, and modernization, and upgrading of aging facilities,” the letter stated.

The losses that would come from ACA repeals as they have been proposed “cannot be sustained and would adversely impact patients’ access to care, decimate hospitals’ and health systems’ to provide services, weaken local economies that hospitals sustain and grow and result in massive job losses,” Nickels said on the media call.

One of the Dobson reports explains why the groups support using HR 3762 as a starting point. Even though the bill, which President Obama vetoed after it passed Congress, repeals ACA provisions that expand health insurance coverage and does not offer a replacement plan, it restores all ACA reductions in hospital payments that were supposed to help to finance the additional coverage, the report states.

How will Trump change healthcare? 6 of the biggest questions answered

http://managedhealthcareexecutive.modernmedicine.com/managed-healthcare-executive/news/how-will-trump-affect-healthcare-6-biggest-questions-answered?cfcache=true&ampGUID=A13E56ED-9529-4BD1-98E9-318F5373C18F&rememberme=1&ts=02122016

Throughout his campaign and in the days following the election, President-elect Donald Trump said that one of his top priorities as the commander in chief would be to repeal and replace Obamacare, a major component of the Affordable Care Act (ACA). By having a Republican president as well as the GOP holding a majority in Congress (which also support its repeal), it’s likely that this will occur, says Ashraf Shehata, MBA, advisory leader for health plans and partner of the firm’s Global Healthcare Center of Excellence, KPMG.

But how do you go about replacing Obamacare when 20 million Americans are now obtaining healthcare coverage from it?

Largest hospital, health system layoffs of 2016

http://www.beckershospitalreview.com/hospital-management-administration/largest-hospital-health-system-layoffs-of-2016.html

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The following hospitals and health systems announced or implemented workforce reductions each affecting 100 or more employees this year. The layoffs are listed below, in descending order of the number of positions affected.

Hospital Impact: Navigating rapid regulatory change in a post-ACA world

http://www.fiercehealthcare.com/hospitals/hospital-impact-navigating-rapid-regulatory-change-a-post-aca-world?utm_medium=nl&utm_source=internal&mkt_tok=eyJpIjoiT1RWa01EQmxZV1l6WkdGbSIsInQiOiJnVitHTEdcL0c4M1JSOENxdGk2V0Q5U0ZQc3V6TFFDdEg4Y1VUWllWbVE3aVNwU2Y3QUpZdmE5aEE3ZEVRWGMyVk14V0YyUHR5MEZvMDByck9wVmFqXC9ib3pRZnNyb0lmM05sZXl1eVZJRjhBPSJ9

Sign that says "changes ahead"

Since the Affordable Care Act was signed into law in 2010, the environment for healthcare has changed dramatically. Now, it could change even more with the possibility of an ACA repeal. But over the past six years, I have learned a few tips on how to navigate difficult times and transitions through experience, education, and collaboration with colleagues and governmental leaders. Here’s a review of some major industry trends and how healthcare organizations can adapt:

Diagnosing why innovation hasn’t stopped healthcare productivity declines

Diagnosing why innovation hasn’t stopped healthcare productivity declines

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Autonomous vehicles. Augmented reality. Artificial Intelligence.

The world is undergoing radical transformation via technological innovation. Healthcare is not immune to this trend and has lately unleashed its own wonders from CRISPR to 3D-printed prosthesis to sensor-enabled pills. We can truly transform lives in ways unimaginable even just 10 years ago.

In other ways, however, healthcare lags.

In transportation, Google’s first “driverless” Street View cars were on the road a scant few years after the DARPA Grand Challenges of the mid-2000s that paved the way for them, and Uber become a verb in the same amount of time it takes to implement a current EHR system. Furthermore, Amazon’s chatty Alexa now interacts with you in your home, having arrived just a short time after Siri became the personal assistant in your pocket.

Healthcare innovation has been incapable of gaining similar traction even with profound technological advances.

There is an unmentionable dark side of healthcare innovation.

Advances in productivity via utilization of new tools and technologies has been anemic. Healthcare is struggling to keep pace with other industries. In fact, in a recent McKinsey study, healthcare is one of only two industries (construction is the other) that has shown a productivity decline. Read that again: Despite IT spending growth increasing by over 5 percent per year over the last 10 years, we’ve actually seen the healthcare labor pool and service environment become less efficient!

Health, hospital system consolidation will reshape delivery system, HFMA report says

http://www.healthcarefinancenews.com/news/health-hospital-system-consolidation-will-makeover-delivery-system-over-next-decade-hfma-report?mkt_tok=eyJpIjoiWm1Fd1pEWXdPV1V3TlRRNSIsInQiOiJqRitmbGZXbGdhVndGYytNYkdtSFkzMVlrM2tYanVNbXVJM1wvT3M3cHBmTnZHNDRkTG56MVwvZVQwQm5taExhRHlYaEtGYXFJWXd6WTBvbGdDRlJscFAwRThWMnFyejM2SUhFVmU5d0hxRGhJPSJ9

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Hospital and health system consolidation will continue to build, giving the delivery system a significant makeover during the next decade, according to Health Care 2020: Consolidation, a new report published by the Healthcare Financial Management Association. Over that time, healthcare organizations will be challenged to prove that the changing landscape actually improves value to consumers.

The report is the third in a series of four that comprise an environmental assessment designed to guide healthcare organizations in their strategic planning efforts over the next several years.

One major trend cited by the report is that Independent physician practices are increasingly becoming an endangered species, due principally to the healthcare industry’s accelerating transition from volume to value. Regardless of whether pending mergers are allowed to go forward, the health insurance sector should remain highly consolidated for the near future.

HFMA President and CEO Joseph J. Fifer, FHFMA, CPA, said in a statement that consolidation is a trend that’s here to stay.

Moody’s changes Geisinger Health System’s outlook to negative

http://www.beckershospitalreview.com/finance/moody-s-changes-geisinger-health-system-s-outlook-to-negative.html

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Moody’s Investors Service revised Danville, Pa.-based Geisinger Health System’s outlook to negative from stable.

The outlook revision is based on a number of financial and strategic challenges, including an operating loss related to Geisinger’s health plan’s exchange product.

Moody’s Investors Service also affirmed the “Aa2” and “Aa2/VMIG 1” ratings on Geisinger’s outstanding bonds. The rating affirmations are based on Geisinger’s large size, leading market position and exceptional clinical reputation.

CHI records $483M operating loss as labor costs grow, patient volume declines

http://www.beckershospitalreview.com/finance/chi-records-483m-operating-loss-as-labor-costs-grow-patient-volume-declines.html

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Catholic Health Initiatives, a nonprofit 103-hospital system based in Englewood, Colo., recorded an operating loss of $483.3 million in fiscal year 2016, compared to an operating surplus of $23.9 million in the year prior.

CHI reported revenue of $15.9 billion in FY 2016, up 7.4 percent from $14.8 billion in FY 2015.

However, rising expenses offset the system’s revenue gains. CHI said expenses increased 10.2 percent year over year to $16.1 billion in FY 2016.

“Lower patient volumes, higher labor costs, increased pharmacy prices and reduced reimbursement in Medicare and Medicaid all contributed to CHI’s financial performance in the 2016 fiscal year,” the system said in a written statement.

CHI ended FY 2016 with a net loss of $703.2 million, compared to a net gain of $113.6 million in FY 2015.

CHI officials expect financial performance to improve in FY 2017. “CHI is focused on several key areas for increased efficiency and expense reduction — including labor, supply chain, administrative overhead, revenue cycle and pharmacy services,” the system said. “We are confident these efforts will yield substantial improvement in overall operating and financial performance as we progress through the current fiscal year.”

Healthcare predictive analytics market should hit $19.5 billion by 2025, research shows

http://www.healthcarefinancenews.com/news/healthcare-predictive-analytics-market-should-hit-195-billion-2025-research-shows

The market for healthcare predictive analytics should hit $19.5 billion by 2025, according to a new report by Grand View Research.

This is largely due to government authorities, health organizations and private players who are striving to decrease healthcare expenditures. Predictive analytics can help bend the cost curve by optimizing an organization’s existing clinical workflow, operations and payment strategies.

The data that feeds this trend is flowing freely. With the advent of the internet of things in healthcare and wearable technology, people are more closely tracking their health by the numbers, generating a huge amount of patient data on things like diet habits, physiological parameters and vital signs. Predictive modeling based on this data helps in understanding disease patterns, as well as key therapy trends and outcomes.

Staffing shortages top list of C-suite concerns in economic outlook, Premier says

http://www.healthcarefinancenews.com/news/staffing-shortages-top-list-c-suite-concerns-economic-outlook-premier-says?mkt_tok=eyJpIjoiTkdVeVpUQm1ORFZtTkdZMCIsInQiOiJYXC9IMjFnTXJUeTVOTFFlalVtcVRlT0E1MjAzSnZ4SERvVEpyZ1lFaEVYcGxHTnpnMVI2Z2FId2RKWDdnZFZMXC9hK2crTDlIWnY2WStzeGVsTmtnMEFJR2hvd1wvYVl3dDVNb29wOGRBdlNmND0ifQ%3D%3D

Staffing shortages are top of mind for C-suite executives, with 41 percent of those surveyed for the Fall 2016 Premier Inc Economic Outlook calling it their biggest concern and the issue that will have the biggest impact on their system’s ability to deliver care.

That figure shot up 42 percent from the Spring 2016 outlook, results show. Health reform also topped worries, with 24 percent saying that would impact them most, followed by innovations in population health. Other concerns included drug shortages and emerging technology.

The survey polled healthcare executives on the biggest issues facing their supply chains and health systems as a whole. The most recent survey represents 52 health system C-suite executives across the United States.

Key findings also show workforce worries in other areas. The study found 72 percent of executives surveyed said they think the current supply of primary care physicians will not meet their needs over the next three years, and 51 percent don’t have enough nurse practitioners, physicians and other healthcare extenders.