Operations

Across the U.S., hospital costs are rising while revenue and patient volume are falling. Rural not-for-profit hospitals, in particular, face a challenging financial future, one in which some facilities might close or at least "go hungry."

Healthcare reform is fundamentally changing the way hospitals are run. A combination of crushing costs, government edicts and fierce competition for the millions of newly insured patients that will result from federal healthcare legislation is putting the patient front and center.

Because healthcare providers operate in a highly regulated industry, most recognize that it is more a question of when, rather than if, they will be subject to a government investigation.

At the same time the government is encouraging healthcare providers, doctors and insurance companies to digitize healthcare information, the landscape for attacking that info is increasing dramatically. One industry insider provides seven tips for how to prevent a data breach.

Citing continued sluggish increases in healthcare utilization, Aetna yesterday posted a third quarter profit of $523.2 million, or $1.55 per share, a per share increase of 11 percent over the third quarter of 2011 when the company posted profits of $1.40 per share.

Last week, a panel of skilled nursing facilities (SNFs) experts joined moderator Steve Monroe, managing editor and partner of research and publishing firm, Irving Levin Associates, for a question-and-answer session about buying, selling and valuing SNFs. We share some of the insider tips and perspectives offered during the 90-minute webcast.

Medical device firm Welch Allyn announced Monday it will reduce its workforce by 10 percent over the next three years in reaction to the 2.3 percent medical device tax slated to begin in January 2013 in accordance with the Affordable Care Act.

With HHS issuing a final rule that establishes Oct. 1, 2014 as the ICD-10 compliance deadline, physicians and medical personnel are girding themselves for what many officials perceive to be a complex labyrinth of documentation.

HealthPartners and Park Nicollet Health Care announced that their boards of directors have signed an agreement to combine the two non-profits to create a comprehensive integrated health system and associated health plan to serve the Twin Cities region and parts of western Wisconsin.

Medicare- and Medicaid-focused health insurers continue to be the darlings of the acquisition ball, as evidenced by yesterday's announcement that Aetna would purchase Coventry Health Care in a cash and stock deal valued at $5.7 billion.