Adaptation is Key in 2010 and Going Forward
By Robert James Cimasi; MHA, ASA, AVA, CBA, CMP™
Hospitals today must continually adjust to deal with pressures to contain reimbursement and utilization levels. The continuing cost containment pressures manifest themselves in many patients being shifted not only to lower acuity treatments but also to other providers.
Reimbursement mechanisms are increasingly designed to control costs and access. Managed care insurance plans continue to be a strong influence as payers for acute care hospital services. Medicare’s HOPPS [hospital outpatient prospective payment system] has reduced many of the financial benefits of shifting more care to outpatient settings.
Personnel Shortages
Personnel shortages have plagued the industry, and with the pending retirement of baby-boomers, relief from these shortages seems remote. This population also heavily influences the consumer side of the industry, since healthcare plans are based heavily upon demographics. Aging baby-boomers are the fastest-growing segment of the population; the portion of the population over 65 years old is expected to increase from 20 million in 1970 to 69.4 million in 2030. Following closely behind is the increase in other minority populations. Both groups will influence how healthcare services are dispensed.
Additionally, despite pressure to limit ALOS [average length of stay] and the shift to outpatient and freestanding, off-campus care, there will continue to be demand for acute care hospitals and the demographic trends will support this demand for many years.
Technology
Technological advances always play a central role in changing the medical industry. The issue will be how healthcare providers will adopt new technologies under their current capital constraints.
Currently, health care insurance coverage is a major unfolding issue in the US, and there remains uncertainty about the future level of both public and private insurance coverage. Now, facing the recent economic instability, employers are looking at restraining healthcare benefits for their employees even more as a way to stay profitable.
Assessment
The decline in the healthcare workforce coinciding with the increase in labor costs and resource consumption poses an ongoing challenge. And yet, in the midst of the economic turmoil, hospitals must continue to provide services while remaining aware of the economic threats that may still lie ahead.
More:
Conclusion
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Filed under: Career Development, CMP Program, Health Economics, Managed Care | Tagged: ALS, Hospital industry outlook, hospital outpatient prospective payment system, Medicare’s HOPPS, Patient Protection and Affordable Care Act, Robert Cimasi, St. vincent hospital manhattan, www.certifiedmedicalplanner.com, www.healthcarefinancials.com | 9 Comments »















