Accounting & Financial Management
With fewer resources available and a need to control and better understand costs, UPMC has piloted a cost-analysis system that may become a national model.
New revenue streams can offset financial losses experienced by providers due to lower utilization, especially within the hospital setting. One way providers can grow revenue is by offering health insurance products.
Aggregated clinical data are essential to managing population health. But analyzing the financial health of various service lines is a complex undertaking.
The potential exists for an unprecedented slowdown in receivables turnover as the Affordable Care Act marches toward full implementation. The importance of having a plan in place to mitigate this problem cannot be overstated.
As a result of the push towards accountable care, increased patient census no longer translates to higher revenue for hospitals. Unless costs are managed internally, higher patient volume may instead lead to narrower margins, if not outright red ink.
Increasing costs, declining reimbursements and narrow profit margins are leading hospitals to reassess their options for long-term financial viability. While continuing to seek ways to improve efficiencies and reduce costs, it is essential to understand the importance of value-added premium services.
Most healthcare managers recognize the importance of liquidity, but many fail to take the necessary steps to increase it.
With the rise of value-based payment and care models, long-term hospital viability may depend on not only getting a better handle on costs, but also being able to link them to outcomes. To achieve this, hospitals need cost accounting on steroids.
In case anyone was wondering, the RACs haven't gone away for good. They're just taking a vacation. The Centers for Medicare & Medicaid Services announced a "pause" in RAC audits last month, in preparation for the procurement of the next round of RAC contracts.
The Obama Administration released its proposed federal budget for fiscal year 2015 this week. Virtually all types of healthcare providers, health plans, and drug manufacturers would be impacted by the budget provisions if adopted as proposed - although that is an unlikely scenario.