HD-HCPs Gaining Ground

 

Popularity of Consumer Driven Plans Increasing

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Medicare Costs to Double by 2017

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New CMS Report for 2008

[By Staff Writers]

According to a new CMS report, national health spending grew 6.7% last year, reaching $2.2 trillion overall. But, it is expected to hold steady over the next 10 years. 

Nevertheless, healthcare spending will account for 20% of GDP by 2017; if left unchecked.

Of course, more than a few health economists note that eliminating some Medicaid payment restrictions spiked hospital spending, but the sector is expected to see more growth in later years. 

Fueling Medicare growth dramatically will be baby boomers as they become eligible. Medicare spending is expected to reach $427.3 billion in 2007, ballooning to more than twice that amount, or $884 billion, in 2017, according to some CMS estimates [about 7.2% annually]. 

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Assessment

And so, what are your thoughts on this new report? Is this increase in GDP such a bad thing?

Conclusion

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Real Estate Investments

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Doctors Must Understand the Unique Risks

[By Julia O’Neal; MA, CPA]

Real Estate [RE] requires a separate discussion of unique risks relative to other financial asset classes. 

Macro Economic and Other Risks 

RE investments possess not only the macro-economic risks found in all financial assets, but other unique risks, as well.

For example, these risks include illiquidity, lack of a continuous auction trading market, and quoted prices that may or may not represent intrinsic value.  

Lack of Diversification 

Given the large size of many real estate projects, it may also be difficult to diversify adequately and reduce total portfolio risk.

And, because of the chance of segmented markets, the risk of imperfect information is also present.  

Assessment

Remember, real estate is not easily divisible and is nonhomogeneous; such risks cannot be fully negated through diversification. 

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Conclusion

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FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors

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On Physician Hospital Organizations [PHOs]

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Understanding PHOs

[By Dr. David Edward Marcinko; MBA CMP™]

[Publisher-in-Chief] 

A Physician Hospital Organization, or PHO, is a blend of private doctors and hospitals, maintaining its concentration and control of surgical, rather than medical care.

Ownership may be divided by a governing board, according to a pro-rata basis with the larger partner having most organizational strength and bargaining power in the corporate structure. Typically, this favors the hospital. 

From a strategic standpoint, most MD’s are still not currently aligned with many PHO’s, since surgical care is increasing being delivered in private offices, Surgical Specialty Hospitals (SSHs) or Ambulatory Care Centers (ACCs).  

Additionally, PHOs may become potential MD competitors, and may often lack managed care contracting experience, have inflexible provider networks and may require MD exclusivity in their organization. 

PHO Functions 

Nevertheless, the function of a PHO is to:

  • Negotiate managed care contracts
  • Negotiate on all health insurance contracts
  • Establish insurance product(s)
  • Employ doctors and support staff
  • Consolidate and acquire physician practices
  • Acquire alternative medical practices. 

Assessment 

Many believe the “p” in PHO should be lower-case; while an upper-case “H” is a sign of relative strength [i.e., pHO].  And so, what do you think? 

Conclusion

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

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