Archive

Posts Tagged ‘health IT’

ICD-10 Implementation To Cost Physicians and Hospitals Millions

July 31, 2012 1 comment

ICD-10 implementation is expected to happen now (after delays) in October 2014. The American Medical Association and Medical Group Management Associations state that implementation will cost a single  physician $27,000 – $29,000. This amount of money could potentially be detrimental to a physician ‘s (and even a hospitals) bottom line. Below is how much ICD-10 could potentially cost physicians (and hospitals). The calculations you will find below are based upon the number of physicians a facility has. Here is what some of our nation’s top hospitals might pay.

———————————————————————————-

Cleveland Clinic                                                  –       $70,000,000   – $75,000,000

Duke Medical Center                                         –       $39,000,000    – $42,000,000

Emory University Hospital                              –       $27,000,0000  – $29,000,000

Johns Hopkins Hospital                                 –        $57,000,000     – $62,000,000

Massachusetts General Hospital                  –       $48,000,000 – $51,000,000

Mayo Clinic                                                         –        $99,000,000   – $107,000,000

Northwestern Memorial Hospital                 –        $48,000,000  – $51,000,000

NY Presbyterian Hospital                                –      $165,000,000  – $178,000,000

Ochsner Health System                                   –       $25,000,000    – $27,000,000

Texas Medical Center                                        –      $540,000,000  – $580,000,000

UCLA Medical Center                                        –       $52,000,000    -$56,000,000

Vanderbilt University Medical Center          –      $324,000,000  –  $348,000,0000

Advertisements

American College of Healthcare Executives 2011 Survey: Top Issues Confronting Hospital CEOs

February 28, 2012 Leave a comment

The prestigious American College of Healthcare Executives recently released the results of their annual Hospital CEO Survey. 40% of the hospital CEOs responded. For the survey, the CEOs were asked to rank their top issues currently confronting their facility. Financial challenges was the top concern followed by healthcare reform, patient safety, care for uninsured, patient satisfaction, technology, personnel shortages and creating an ACO. ACO and technology were ranked the lowest due to the concern of the high overhead expenses directly associated with them. The issues were then asked to identify specific concerns with in the issues listed above. For analysis purposes, the concerns were divided into three categories: financial challenges, patient safety and quality, and healthcare reform implementation. The results are as follows:

Financial Challenges

– medicaid reimbursement / medicare reimbursement ranked top at 88% of respondents

– Increasing overhead costs (IT, supplies, etc)  ranked at 51%

– revenue cycle management ranked at a low 28%

Patient Safety and Quality

– physician engagement in improving culture and quality ranked top at 72% of respondents

– redesigning space and processes to reduce errors ranked at 43%

– medication errors ranked at a low 31%

Healthcare Reform Implementation

– reducing operating costs associated with implementation ranked top at 67%

– study avoidable readmissions to avoid penalties ranked at 45%

– Hiring physicians ranked at a low 34%

You can read more about the survey in the ACHE’s Healthcare Executive Magazine

Breaking News: If Healthcare Reform Repealed, Public Law 111-152 will Uphold It!

December 30, 2011 1 comment

If the healthcare reform law (P.L. 111-148 – Affordable Care Act) is overturned and repealed, P.L. 111-152 (The Health Care and Education Reconciliation Act of 2010) will uphold it. This particular piece of legislation is part healthcare and part education reform law and it is very heavy on financing. The legislation was passed and signed into law quietly by President Obama on March 30, 2010. Its sister law (P.L. 111-148 – Affordable Care Act) was signed into law by President Obama  on March 23, 2010. The Congressional Budget Office, U.S. Department of Health and Human Services, and U.S. Department of the Treasury have said the legislation will see a reduction in the federal deficit by $143 billion over 10 years (2010-2020). This figure comprises $124 billion in net reductions deriving from health care and revenue provisions and $19 billion from the education provisions. The provisions consist of new taxes, fees on health-related industries (medical device, IT, insurance) and cuts in government spending on healthcare programs such as Medicare, Medicaid, and Medicare Advantage.

Here is a summary of the provisions that are in P.L. 111-152.

Healthcare Provisions……………….

All U.S. citizens must purchase health insurance by 2014 or face a fine of $695 (reduced from $750) or imprisonment.

Senator Ben Nelson’s (D-Nebraska) special Cornhusker Kickback deal eliminated.

Closes Medicare Part D “donut hole” by 2020 and gives seniors a rebate of $250.

Tax on cadillac health-plans delayed until 2018.

Physicians who see Medicare payments required to be reimbursed at the full rate.

Medicare tax on unearned income of families that earn $250,000 a year.

Households below 150% of the federal poverty level would pay 2% to 4% of their income on premiums. Health plans would cover 94% of the cost of benefits. Households with incomes from 150% to 400% of the federal poverty level ($88,200 for a family of four) would pay on a sliding scale from 4% to 9.8% of their income on premiums, rest will be covered by government advanceable, refundable tax credit. Health plans would cover 70% of the cost of the benefits.

In 2014, if a company with more than 50 workers does not offer coverage, they will be obligated to pay $2,000 for each full time worker in the company, exempting the money due for the first 30 employees. For example, an employer with 53 workers will pay the penalty for 23 workers, or $46,000.

Would increase Medicaid payment rates to primary care doctors to match Medicare payment rates, which are higher, in 2013 and 2014.

The federal government would pay all of the costs of expanding Medicaid under the reform until 2016, 95% in 2017, 94% in 2018, 93% in 2019, and 90% thereafter. Some states that already insure childless adults under Medicaid would receive more federal money for covering that group through 2018.

The Medicare patients will receive 50% discount on brand-name drugs would begin in 2011. By 2020, the government would pay to provide up to 75% discount on brand-name and generic drugs, eventually closing the coverage gap.

Would extend the ban on lifetime limits and rescission of coverage to all existing health plans within six months after signing into Law.

Education Provisions……..

Ends the process of the federal government giving subsidies to private banks to give out federally insured loans. Instead loans will be administered directly by the Department of Education.

Increases the Pell Grant scholarship award.

For new borrowers of loans starting in 2014, those who qualify will be able to cap the amount they must spend on loan repayment each month to 10% of their discretionary income (current cap is 15%.).

After 2014, loans will be eligible to be forgiven to those who make timely payments after 20 years (the current time-frame being 25 years).

Will make it easier for parents to take out federal PLUS loans for students.

Several billion will be used to fund historically poor and minority schools, as well as increasing community college funding.

You can read the bill in its entirety here: http://www.gpo.gov/fdsys/pkg/PLAW-111publ152/html/PLAW-111publ152.htm

American Medical Association AGAINST ICD-10 Implementation

November 16, 2011 Leave a comment

The American Medical Association have voted to fight against the implementation of ICD-10. Many major hospital systems have come out against it stating that it is too expensive to implement.

Healthcare IT News reports that the 65th Interim Meeting of the AMA in New Orleans, in fact, “the AMA House of Delegates voted to work vigorously to stop implementation of ICD-10,” primarily on the grounds that the “timing could not be worse” for this “massive and expensive undertaking” brings too little benefit to physicians, and will prove disruptive as they also work to implement EHRs and demonstrate meaningful use. Citing a 2008 study, AMA explained that projected costs of converting to the unfunded code sets mandate will cost even a three-physician practice $84,000 and slightly more than $285,000 for a 10-physician group.

Source: http://www.healthcareitnews.com/news/ama-mounts-campaign-halt-icd-10

%d bloggers like this: