Capital Markets: Balancing Opportunity with Uncertainty

Capital markets, which have been relatively stable over the last several years, have begun a slow but consistent rise in interest rates. This means healthcare organizations should prepare for a higher cost of capital.   The outlook becomes confusing, however, because of “recent significant policy developments” from the current congress and administration, notes the author […]

CMS Reveals New Stance on ACO Risk Contracts and Medicaid Limits

No Medicaid lifetime limits and a hard stance on ACO risk contracts highlighted CMS head Seema Verma’s talk at the American Hospital Association’s recent annual meeting.   “We’re determined to make sure that Medicaid remains the safety net for those who need it most,” Verma said. “To that end, we have determined we will not approve […]

Internalizing Enterprise Risk Management

As the healthcare market expands and evolves, the inherent risks also are increasing. These risks include: The shift from volume to value The rise of the consumer and expansion of consumer options New payment models Mobile strategies New entrants An aging population Continued political and regulatory uncertainty   Whereas hospitals/systems have traditionally done well at […]

Involved in Value-Based Payment? Meet Quanto

by Amanda Brown, Senior Associate

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Veralon’s health system clients have achieved significant savings using Quanto to identify value-based improvement targets and provide the financial management reports to manage to those targets; client savings have varied from over $1 million to $13 million. Quanto was developed by Veralon and by Health Data Innovations, a leader in healthcare data integration. We partnered to make […]

Merger Transactions Trend Upward in 2018, But at Higher Rate

Several deal-tracking companies reported an increase in hospital transactions in the first quarter of 2018—from 25 to 36 transactions depending on the tracking company. All noted it’s the second highest number of quarterly transactions in the last 10 years.   Transactions included: For-profit divestures Mega mergers worth more than $1 billion Announced transactions involving teaching […]

Hospital Mergers and Acquisitions: Planning for Realistic and Achievable Results

by Robert Hill Jr., Principal

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A high volume of mergers and acquisitions between and among hospitals and health systems continue to dominate the healthcare landscape, with an increasing number of transactions anticipated in 2018.1 The benefits of consolidation are well known: Enhanced access to care and increased market share by providing specialty or subspecialty physician coverage previously unavailable or by […]

MedPAC Targets Stand-Alone EDs for Payment Cuts

Earlier this month, the Medicare Payment Advisory Commission (MedPAC) voted to cut reimbursement for some freestanding emergency rooms in urban areas. Industry analysts warned that the cuts could undermine access to care.   Freestanding emergency departments receive Medicare payments equal to hospital emergency departments even though they have lower standby costs than on-campus emergency rooms, […]

Using “Relative Burden” to Determine Reasonable ED Call Coverage Compensation

by Stuart J. Schaff, Senior Manager

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Many hospitals are finding themselves in discussions with physician specialists regarding compensation for emergency department (ED) call coverage. An increasing number of physicians are paid for this coverage, and information on these payments is becoming more widely available to physicians in the form of published surveys and conversations with fellow physicians. While healthcare finance leaders […]