CFOs explain changing role, see collaboration key as healthcare changes

http://www.healthcarefinancenews.com/news/cfos-explain-changing-role-see-collaboration-key-healthcare-changes?mkt_tok=eyJpIjoiTlRBeU5EUTRNemMxTmpabSIsInQiOiJqTlZNaWFSY2Vid2c4T3JEeU1FNlkwOFwvcmp0U21idDZBU0w2NWZzTWM5Y0RDQWoxYzdLRjdKUkh4WFhvakZcL014Wk50eHR6ZnkybmY3VnNsOXBISElhS2FpazdXbW5LNWZiT2tKOVpRYzcwPSJ9

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While the old image of a healthcare chief financial officer centered on accounting, budgeting and overseeing the financial operations in general of a healthcare system, changes to the industry are turning that idea on its head. As clinical quality and technological prowess now have direct effects on the financial health of a hospital, the modern CFO must have a far more overreaching set of skills to perform at the highest level in their jobs.

To illustrate that, Healthcare Finance spoke to three CFOs in the field about how they got to the top and how that role has evolved during their tenures. All of them said the job demands more strategizing, collaboration and concern over quality than ever before.

Value-based care will likely continue under Trump

http://www.fiercehealthcare.com/finance/value-based-care-will-likely-continue-under-trump-administration?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiWVRsaVpESTVOVGN5TW1ZeCIsInQiOiJ4SUR1VG42K1ltRHorVmE5QUgwZ1A5ZGJMMjhDZ1g0Um4rczVTZVVFMHBGYkVZQjVKTGlBekduM005OEVuTklVdmdyMmNOakx2NVNYOTh3TVpNV0ZHXC9ydndRSTZDMTIrNEw0QlVTb2J6V0E9In0%3D

Doctor talking to senior patient and her husband

Despite President-elect Donald Trump’s campaign promises to repeal the Affordable Care Act, industry experts say value-based care initiatives will likely continue under the new White House administration.

Healthcare finance takes the spotlight

Although it’s likely that certain aspects of the ACA will change, demand for value-based care will not go away, write NewYork-Presbyterian Hospital’s Emme L. Deland, senior vice president and chief strategy officer, and Jonathan Gordon, director of NYP Ventures, in a post for NEJM Catalyst.

“At the moment, it seems likely that healthcare financing will get more attention than healthcare delivery under the new administration,” they write.

François de Brantes, executive director for the Health Care Incentives Improvement Institute, agrees, writing in a separate post for NEJM Catalyst that the bipartisan Medicare Access and CHIP Reauthorization Act will help fuel the movement away from fee-for-service payments.

Ryan now has the muscle to phase out Medicare — within months

http://www.sfgate.com/politics/article/Ryan-now-has-the-muscle-to-phase-out-Medicare-10613139.php?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=37625118&_hsenc=p2ANqtz-8__03zRw-gu7XJrwOBmO6XYdGObArnMQTK9_dRrTgDh69s7q3OUq53AcYCfr9bwrtHj5mbLYOPIBBdQVoE_yCtdZWBTg&_hsmi=37625118

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House Speaker Paul Ryan’s plan to phase out Medicare is nothing new. But now, under a Trump presidency and with both houses of Congress in Republican hands, it looks like he could finally make it happen, possibly within months.

Back in 2011, as a U.S. representative for Wisconsin’s 1st Congressional District, Ryan floated a plan to turn Medicare into a “premium support” program. The “premium support” would be a payment that would let you buy insurance from private insurers. But you won’t get full coverage.

As Josh Marshall acidly noted Sunday in a blog for TPM, “In any case, rather than Medicare you’ll have insurance from an insurance company, which everybody should love because haven’t you heard from your parents and grandparents how bummed they were when they had to give up their private insurance for Medicare?

“You’ll hear lots of people calling this ‘reform’ and other catchwords. But Medicare is a single payer, universal health care system. Replacing it with private insurance means getting rid of it. Even calling it ‘privatization’ masks what is really afoot.”

On Fox News Special Report on Thursday, Ryan was asked about entitlement reform. His answer:

“You have to remember, when Obamacare became Obamacare, Obamacare rewrote Medicare, rewrote Medicaid. If you are going to repeal and replace Obamacare, you have to address those issues as well. What a lot of folks don’t realize is this 21-person board called the IPAP is about to kick in with price controls on Medicare. What people don’t realize is because of Obamacare, Medicare is going broke, Medicare is going to have price controls because of Obamacare, Medicaid is in fiscal straits. You have to deal with those issues if you are going to repeal and replace Obamacare. Medicare has serious problems [because of] Obamacare. Those are part of our plan.”

Marshall says that’s false, and Ryan knows it. Instead of putting Medicare under deeper financial stress, the Affordable Care Act has had the opposite effect and actually extended Medicare’s solvency by over 10 years, he says.

According to Medicare’s trustees, the “Part A” trust fund — the costliest component of Medicare, covering hospitalization — is set to become insolvent in 2028. In 2009, before the passage of the Affordable Care Act, it was projected that fund would go broke in 2017.

Paul Ryan is determined to gut Medicare. This time he might succeed

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-medicare-ryan-20161114-story.html?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=37625118&_hsenc=p2ANqtz-8op3UbE6wkf1QHSbmlOITUvS45OW4rFAoMDUSaFiNXpSZN2Afucl6wLeww-aou9CIZqsrb3AUTqQwZmAAU0vubnznweA&_hsmi=37625118

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Bursting with the policymaking power that control of both houses of Congress and the White House gives Republicans, House Speaker Paul D. Ryan (R-Wis.) has lost no time in teeing up a favorite goal: gutting Medicare.

In an interview with Fox News Channel last Thursday, Ryan said: “Obamacare rewrote Medicare … so if you’re going to repeal and replace Obamacare, you have to address those issues as well. … What people don’t realize is that Medicare is going broke, that Medicare is going to have price controls. … So you have to deal with those issues if you’re going to repeal and replace Obamacare. Medicare has got some serious problems because of Obamacare. Those things are part of our plan to replace Obamacare.”

There’s no secret about what specifically Ryan has in mind. He intends to replace traditional Medicare, an efficient program offering guaranteed treatment and featuring rock-bottom administrative costs, with a privatized program. Seniors would get a federal voucher to help them pay premiums charged by commercial insurance plans. Ryan calls this system “premium support.”

The 1 thing about healthcare that needs to change: 4 executives weigh in

http://www.beckershospitalreview.com/hospital-management-administration/the-1-thing-about-healthcare-that-needs-to-change-4-executives-weigh-in.html

Self-Discovery

From the shift to value-based care to increased price transparency, the healthcare industry is in the midst of significant changes that are aimed at efficiently improving care. However, for that goal to be achieved, problems in the industry such as disparity in access to care and confusing billing systems still need to be addressed, according to healthcare executives.

In a panel discussion on Nov. 9 at the Becker’s 5th Annual CEO + CFO Roundtable in Chicago moderated by Rhoda Weiss, PhD, nationally recognized consultant, speaker, and author, four great minds in healthcare discussed the changes they would like to see in the industry, what gives them pride in their organizations and the issues that keep them awake at night.

California Dreamin’ in a post-Trump healthcare world

http://www.fiercehealthcare.com/finance/suddenly-it-s-much-darker-california-dreaming-may-be-one-silver-lining?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTmpjd1pURm1NR0ZqTlRWbSIsInQiOiI5MkdaMWJlaGV4dlppeWNkY1NqNTNtTFJ1MFlrcWtQQWxcL2hvYWVUK3lmNEJRT1lCVTJLQTFwdGFcL0dLWWlGMnBzbGNQbXhDdnFDVUdsdkthR3Y4UzJIVm5sT25iNHJmYWd2aGlFXC9ycVNDST0ifQ%3D%3D

California flag and American flag

The consensus among policymakers and observers: Not good.

“At risk is insurance coverage for literally millions of Americans,” said Anthony Wright, executive director of the advocacy group Health Access California.

Jim Lott, who teaches healthcare policy at USC and Cal State Long Beach and was the longtime executive vice president of the Hospital Association of Southern California, noted that even if parts of the law are preserved the way Trump suggests, it would still be imperiled.

“If you don’t have an employer mandate and an individual mandate, the market would self-destruct,” Lott said. “It will create havoc.”

Barcellona, an attorney by training, concurred with Lott. “The law matters and these federal programs are conditioned on the act being implemented in a certain way,” he said.

Barcellona also brought up a consequence that would be utterly disastrous for millions of middle-class Americans: If the ACA is eliminated in the middle of a calendar year, it could put them on the hook for repaying billions of dollars in premium tax credits.

3 ways hospitals must prepare for a likely recession

http://www.fiercehealthcare.com/healthcare/3-ways-hospitals-must-prepare-for-a-likely-recession?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiTmpjd1pURm1NR0ZqTlRWbSIsInQiOiI5MkdaMWJlaGV4dlppeWNkY1NqNTNtTFJ1MFlrcWtQQWxcL2hvYWVUK3lmNEJRT1lCVTJLQTFwdGFcL0dLWWlGMnBzbGNQbXhDdnFDVUdsdkthR3Y4UzJIVm5sT25iNHJmYWd2aGlFXC9ycVNDST0ifQ%3D%3D

money

Bad economic times are coming, says Jeff Goldsmith, Ph.D.

The U.S. is in the 89th month of an economic recovery–among the longest since World War II–which means a recession is overdue and healthcare organizations should prepare now, writes Goldsmith, a national adviser to Navigant Healthcare, in Hospitals & Health Networks.

Healthcare systems can get ready for that inevitable economic downturn by taking the following steps:

Look for ways to do more with less. Healthcare organizations can expect to live with slow or shrinking revenues. Scrutinize physician compensation and productivity. Reduce layers of management and examine contracts for supplies and services.

Tighten up revenue cycle functions.  Improve your patient collections process. Make payment obligations clear to patients and ensure that billing staff keep better track of denied claims from insurance companies.

Fight for health policies that work for healthcare organizations. Lobby members of Congress, state legislators and governors to protect Medicaid funding. “Hospitals must insist that policymakers keep their commitments when times are tough,” Goldsmith says.

EXECUTIVE COMPENSATION: Aligning Clinical and Financial Strategy for Value-Based Care

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As our industry continues to wrestle with the impacts of the Patient Protection and Affordable Care Act and value-based purchasing, it appears that a number of organizations are questioning whether their executive compensation models are appropriate to the times. Besides the more obvious issues surrounding a shift from volume- to value-based financial models, hospital trustees and directors also must respond to consumer and labor advocacy groups, which question the value of the executive team. Indeed, there have been several efforts of late to legally limit the total compensation allowable to CEOs.

This environment can create a bit of a dilemma for governing boards, as they try to balance the need for executive horsepower with a compensation package that is defensible to their constituents. And while base pay and benefits loom large in this equation, there are certainly reasons to evaluate how bonuses are structured if, in fact, bonuses should be paid at all.

In an effort to get at the core of these compensation issues, HealthLeaders Media recently surveyed more than 300 industry leaders of varying stripes to gain insight into their approach to executive compensation and to determine whether these leaders thought that compensation models were aligned with organizational goals. The results were telling.

When organizations were asked what best describes their executive compensation strategy for both the financial and patient care objectives of healthcare now, 17% of the respondents for each objective reported that no change was needed. More than 50% of the respondents indicated that group or team incentives have been or are expected to be modified for executive compensation packages to address the perceived shift from volume to value, and 38% of respondents reported that executive compensation incentives were either slightly or seriously misaligned with organizational strategies.

While a significant number of respondents (61%) reported that their executive compensation programs are currently perfectly or pretty well aligned, the survey results could be an indication that fundamental changes are taking place. These changes not only affect how leaders are paid, but also impact what is expected of them, as the survey attempts to explore this issue as well.

At the end of the day, each organization will have to determine how to use executive compensation to achieve its mission. Obviously, that could lead to a number of acceptable and effective options provided they are carefully considered in light of the complexity of our environment and the culture we wish to create.

Future hospital leaders: Prepare millennials to take the reins

http://www.trusteemag.com/articles/1170-hospitals-start-preparing-millennial-leaders?eid=333956129&bid=1582128

Handshake

http://www.fiercehealthcare.com/healthcare/hospitals-grooming-millennials-to-lead-industry?mkt_tok=eyJpIjoiWVRRd016UTRNRGRoTlRoaCIsInQiOiJIQXpOMU5UWmFUeUNUckNBRDZLYTMxemRZWU5yUzR0UW1sMXdzN1JDU3paN3F6MCtSb25sT3NIcERnN2J5SitRaTliV2RlMjlXckJJOXZITldQK1wvaWc1NGRiY1lkblJqWUlQTHY2dTZ3a289In0%3D&mrkid=959610&utm_medium=nl&utm_source=internal

Trustee takeaways

“The good news in terms of identifying successful millennial leaders is that they are not significantly different from successful leaders in other generations,” says Cindy Roark, M.D., president and CEO of Synergy Population Health. Members of this group, though, do come with some of their own quirks. They often look to others — and their own leaders — to:

  1. Communicate the “why” for any decision or project.
  2. Make an attempt to make everyone feel part of the process.
  3. Facilitate collaboration on projects that would have been autonomous in the past.
  4. Allow for and be a part of team building and camaraderie.
  5. Allow for flexibility to address work-life balance.
  6. Provide continual feedback.
  7. Provide praise.
  8. Develop and support a social responsibility strategy in the organization.

CMO on the journey to ‘One Ascension’ and a national brand

http://www.fiercehealthcare.com/healthcare/cmo-journey-to-one-ascension-and-a-new-national-brand?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiWVRRd016UTRNRGRoTlRoaCIsInQiOiJIQXpOMU5UWmFUeUNUckNBRDZLYTMxemRZWU5yUzR0UW1sMXdzN1JDU3paN3F6MCtSb25sT3NIcERnN2J5SitRaTliV2RlMjlXckJJOXZITldQK1wvaWc1NGRiY1lkblJqWUlQTHY2dTZ3a289In0%3D

St. John Providence Hospital

Ascension’s ambitious strategy to rebrand and rename all its hospitals across 24 states and the District of Columbia is just in the beginning stages. But the goal–to make the Ascension name nationally known–will be worth it no matter how long it takes, says the system’s chief marketing officer.

The rebranding strategy rolled out in September beginning with the non-profit health system’s two largest markets, Michigan and Wisconsin. The marketing campaign features television ads, direct mail and online marketing.

Although the health system is one of the largest in the nation–and the world’s largest Catholic health systemmost of its hospitals operated independently from one another. Until now, Nick Ragone, senior vice president and chief marketing and communication officer tells Medical Marketing & Media