Healthcare Financial Management articles from February 2008

Healthcare Financial Management archives from February 2008

Americans believe covering all should be shared responsibility of employers, individuals, and government: survey.(Healthcare Coverage)(Survey)
February 1, 2008... To help reach the goal of health insurance for all, employers should either provide health insurance to their workers or contribute to the cost of their coverage--so say 81 percent of Americans, according to survey data released Jan. 15 by The...

$25 billion a year? Isn't that what internet shoppers spent this Christmas?(NEWS WATCH)(Brief article)
February 1, 2008... $25 BILLION A YEAR? ISN'T THAT WHAT INTERNET SHOPPERS SPENT THIS CHRISTMAS?: Drug companies spend $7 billion annually marketing directly to physicians, and another $18 billion on free drug samples for them, according to the Prescription...

Emergency department waits increase nationwide, says study ...(Healthcare Quality)(Survey)(Brief article)
February 1, 2008... Waits for emergency care are getting longer each year, according to a study published online Jan. 15 by the journal Health Affairs. The study, which analyzed the time between patients' arrivals in the emergency department (ED) and when they...

... Medicare regulation 42 CFR [section] 405.378 provides for the assessment of interest for Medicare overpayments and underpayments at the higher of the current value of funds rate (5 percent for CY08) or the private consumer rate as fixed by the Department of the Treasury.(CMS)(Brief article)
February 1, 2008... ... Medicare regulation 42 CFR [section] 405.378 provides for the assessment of interest for Medicare overpayments and underpayments at the higher of the current value of funds rate (5 percent for CY08) or the private consumer rate as fixed by...

... CMS has addressed the need for an April 2008 update to the grouper and Medicare code editor (MCE) due to the addition of new patient status discharge code 70.(CMS)(Brief article)
February 1, 2008... ... CMS has addressed the need for an April 2008 update to the grouper and Medicare code editor (MCE) due to the addition of new patient status discharge code 70, defined as "Discharges or Transfers to Other Types of Health Care Institutions...

ICD-9-CM codes are now required to be updated twice a year, instead of a single update on Oct. 1 of each year, in recognition of new technology under the inpatient prospective payment system.(CMS)(Brief article)
February 1, 2008... ICD-9-CM codes are now required to be updated twice a year, instead of a single update on Oct. 1 of each year, in recognition of new technology under the inpatient prospective payment system. Although new diagnosis and procedure codes will be...

There are no new ICD-9-CM diagnosis or procedure codes effective April 1, 2008.(CMS)(Brief article)
February 1, 2008... There are no new ICD-9-CM diagnosis or procedure codes effective April 1, 2008. However, for discharges on and after April 1, 2008, this will be a new grouper and MCE to incorporate the new patient status code 70. Hospitals should update their...

Overcrowded ...(NEWS WATCH)(Survey)(Brief article)
February 1, 2008... OVERCROWDED... EDs at 65% of urban hospitals and 73% of teaching hospitals were either at or over capacity in 2007, according to the American Hospital Association Survey of Hospital Leaders.

... But fault isn't necessarily with misuse, says ACEP.(NEWS WATCH)(American College of Emergency Physicians)(Brief article)
February 1, 2008... The American College of Emergency Physicians (ACEP) said the findings of the study on ED waits are alarming, but not surprising, in that they support what ACEP has been saying for many years: Growing wait times in our nation's EDs are harming...

The treatment of anemia in cancer patients includes the use of erythropoiesis stimulating agents (ESAs) such as recombinant erythropoietin and darbepoetin.(CMS)(Brief article)
February 1, 2008... ... The treatment of anemia in cancer patients includes the use of erythropoiesis stimulating agents (ESAs) such as recombinant erythropoietin and darbepoetin. Although other pharmacologic interventions are possible, ESAs are commonly...

Effective Jan. 1, 2008, all other claims for ESA administrations will also require the reporting of either the most recent hematocrit or hemoglobin reading.(CMS)(Brief article)
February 1, 2008... Effective Jan. 1, 2008, all other claims for ESA administrations will also require the reporting of either the most recent hematocrit or hemoglobin reading. In addition, they should contain one of the following three modifiers, effective Jan....

ESAs administered for more than one of the indicated therapies are to be billed as separate line items.(CMS)(erythropoiesis-stimulating agents)(Brief article)
February 1, 2008... ESAs administered for more than one of the indicated therapies are to be billed as separate line items. That is, ESAs for chemo-induced anemia (EA modifier) are reported as separate line items (e.g., J0881EA); ESAs for radio-induced anemia (EB...

Effective Jan. 1, 2008, all claims for the administration of Part B anti-anemia drugs other than ESAs used in the treatment of cancer that are not self-administered will require reporting.(CMS)(Brief article)
February 1, 2008... Effective Jan. 1, 2008, all claims for the administration of Part B anti-anemia drugs other than ESAs used in the treatment of cancer that are not self-administered will require reporting of either the most recent hematocrit or hemoglobin...

CMS will use the information to help determine the prevalence and severity of anemia associated with cancer therapy.(CMS)(Brief article)
February 1, 2008... CMS will use the information to help determine the prevalence and severity of anemia associated with cancer therapy, the clinical and hematologic responses to the institution of anti-anemia therapy, and the outcomes associated with various...

... And understaffed.(NEWS WATCH)(hospitals survey)(Survey)(Brief article)
February 1, 2008... ... AND UNDERSTAFFED: THE SAME survey showed that 44% hospitals reported increases difficulty in maintaining ED call coverage in orthopedics; only 18% reported the same difficulty in OB/GYN.

Pew study finds states face $2.73 trillion bill for retiree benefits.(State Watch)
February 1, 2008... States have promised at least $2.73 trillion in pension, healthcare, and other retirement benefits for public employees over the next three decades, according to a December report by The Pew Charitable Trusts' Center on the States. Promises...

... CMS has published a proposed rule (Federal Register, Jan. 8, 2008) that would provide for an option for Medicare prescription drug plan (PDP) sponsors to offer a separate prescription drug premium amount for low-income subsidy (LIS) individuals subject to certain conditions.(FEDERAL REGISTER)(Centers for Medicare and Medicaid Services)(Brief article)
February 1, 2008... ... CMS has published a proposed rule (Federal Register, Jan. 8, 2008) that would provide for an option for Medicare prescription drug plan (PDP) sponsors to offer a separate prescription drug premium amount for low-income subsidy (LIS)...

... CMS has issued a final rule (Federal Register, Dec. 27, 2007) eliminating federal Medicaid payment for the costs of certain school-based administrative and transportation activities because the HHS Secretary has found that these activities are not necessary for the proper and efficient administration of the Medicaid state plan and are not within the definition of the optional transportation benefit.(FEDERAL REGISTER)(Brief article)
February 1, 2008... ... CMS has issued a final rule (Federal Register, Dec. 27, 2007) eliminating federal Medicaid payment for the costs of certain school-based administrative and transportation activities because the HHS Secretary has found that these activities...

Nothing saved for (retirees') rainy days.(NEWS WATCH)(Brief article)
February 1, 2008... NOTHING SAVED FOR (RETIREES') RAINY DAYS: None of the five largest states--California, Florida, Illinois, New York and Texas--had put aside money for nonpension of FY06, according to the Pew Charitable Trusts Center for the States.

Percentage change in Medicare physician payment conversion factor: comparison of initial proposed change and final change (2005-2008) *.(NEWS WATCH)(Statistical table)(Brief article)
February 1, 2008... Percentage Change in Medicare Physician Payment Conversion Factor: Comparison of Initial Proposed Change and Final Change (2005-2008)* Initial proposed change Final change in payment in payment ...

... By means of a correction notice of final rule with comment period (Federal Register, Jan. 15, 2008), CMS corrects several technical and typographical errors in the final rule with comment period that appeared in the Nov. 27, 2007 Federal Register.(FEDERAL REGISTER)(Correction notice)
February 1, 2008... ... By means of a correction notice of final rule with comment period (Federal Register, Jan. 15, 2008), CMS corrects several technical and typographical errors in the final rule with comment period that appeared in the Nov. 27, 2007 Federal...

What about the other 44 states.(NEWS WATCH)(Brief article)
February 1, 2008... WHAT ABOUT THE OTHER 44 STATES? With the first wave of baby boomers turning 62 this year, 2.8 million Americans will be eligible for Social Security-but not for Medicare until they reach 65, Yet only six states have laws that extend...

Bush signs law to extend SCHIP.(Quick Hits: Top News Stories of the Month)(SCHIP Extension Act of 2007)(State Children's Health Insurance Program)(Brief article)
February 1, 2008... On Dec. 29, 2007, President Bush signed into law S. 2499, the Medicare, Medicaid, and SCHIP Extension Act of 2007, which extends funding for the State Children's Health Insurance Program through March 31, 2009. Among other provisions, the law...

IRS releases final 2008 Form 990.(Quick Hits: Top News Stories of the Month)(Internal Revenue Service)(Brief article)
February 1, 2008... The IRS has issued an updated version of Form 990, the return that charities and other tax-exempt organizations are required to file annually. The final form, released Dec. 20, retains the redesigned draft's format of a core form and a series...

Drug benefit fuels fastest growth in Medicare spending in 25 years: CMS.(Quick Hits: Top News Stories of the Month)(Brief article)
February 1, 2008... Full implementation of the new Medicare prescription drug benefit contributed to an 18.7 percent increase in Medicare spending in 2006, the fastest rate of growth since 1981 and double the rise in 2005. In fact, in 2006, Medicare spending rose...

Financial burden of health care is increasing: study.(Quick Hits: Top News Stories of the Month)(Brief article)
February 1, 2008... Rising out-of-pocket expenses and stagnant incomes increased the financial burden of health care for more Americans between 200l and 2004, especially for the privately insured, according to a national study supported in part by the Commonwealth...

CMS halts state bids to expand Medicaid eligibility.(Quick Hits: Top News Stories of the Month)(Centers for Medicare and Medicaid Services)(Brief article)
February 1, 2008... It reportedly comes as a surprise to states that the Bush administration is imposing restrictions on the ability of states to expand eligibility for Medicaid. The restrictions are the same as those placed on SCHIP in August after states tried...

Vermont adopts policy of not charging for "never events".(Quick Hits: Top News Stories of the Month)(Vermont Association of Hospitals and Health Systems)(Brief article)
February 1, 2008... The Vermont Association of Hospitals and Health Systems announced Jan. 4 that all Vermont hospitals will adopt a uniform policy to not seek payment from patients or insurers for hospital care resulting in certain rare but serious adverse events...

Policy options could save $1.5 trillion in health spending: report.(Quick Hits: Top News Stories of the Month)(Brief article)
February 1, 2008... If implemented along with universal health insurance, a combination of selected federal policy options could save $1.5 trillion in national health expenditures over 10 years, while also improving value in terms of access, quality, and...

A passion for public service.(Member Spotlight)
February 1, 2008... May Low Sanders has combined her love of health care with an interest in politics. Mary Lou Sanders has a unique perspective of politics in action, both behind the scenes and on the front line. For more than 20 years, Sanders, a...

Overheard.(ETCETERA)
February 1, 2008... "Universities are turning away thousands of qualified applicants to nursing schools each year because they lack the faculty to teach them. We have a pipeline problem. We need to fill that pipeline or we all will suffer the consequences." ...

Restoring Fiscal Sanity 2007: The Health Spending Challenge.
February 1, 2008... [ILLUSTRATION OMITTED] At a time when many hospital CFOs are worried about Medicare payment shortfalls, key members of Congress and leading policy analysts in Washington, D.C., are troubled by the Medicare program's economic instability,...

Most free drug samples go to the wealthy and insured, says study.(From the Headlines)(Brief article)
February 1, 2008... Most free drug samples go to wealthy and insured patients and are not used to ease the burden of the poorest nor the uninsured, according to a study by physicians from Cambridge Health Alliance and Harvard Medical School. The study, which...

What's new on our web site.(ETCETERA)(Brief article)
February 1, 2008... hfm ToolBox: Executive Compensation Tally Sheets. See "Resource Library," then "Compliance," then "Governance," and dick on the title of the document. HFMA Key Hospital Financial Statistics and Ratio Medians 2007. See "Resource...

A lesson in making a difference: beginning a new year provides us with an opportunity to reflect on our lives and think of opportunities that lie ahead.(Make A Difference)(Column)
February 1, 2008... The person in my life who was most instrumental in helping me see my own opportunities was my mother. Many of you were introduced to my mother during my chairman's address at ANI in San Diego. Having her by my side at ANI demonstrated her...

Likeability: not long ago in politics, "the L word" meant "liberal." And for some it was an insult. Now it means "likeability," and it's all the rage.(FROM THE EDITOR)(Editorial)
February 1, 2008... Maureen Dowd brought discussion about political likeability to the forefront in 1987, during the first post-Reagan presidential campaign. Her New York Times article "With Tears and Revelation, '88 Contenders Soften Images" quoted political...

HFMA input recognized in new Form 990.(HFMA NEWS)(Healthcare Financial Management Association)
February 1, 2008... The IRS made reference to HFMA's Statement 15, Valuation and Financial Statement Presentation of Charity Service and Bad Debts by Institutional Healthcare Providers, in the updated version of Form 990, the return that charities and other...

Morgan Award nominations due by Feb. 28.(HFMA NEWS)
February 1, 2008... Nominations for the 2008 Frederick C. Morgan Individual Achievement Award, HFMA's most prestigious individual honor, are due to HFMA National by Feb. 28, 2008. The Morgan Award, named for one of HFMA's founding members, is presented annually to...

The future of military health care: during 2007, I had the privilege of serving as the co-chair of a congressionally mandated task force on the future of military health care.(EYE ON WASHINGTON)
February 1, 2008... The task force was established by the FY07 National Defense Authorization Act and directed to make recommendations to Congress about a broad range of measures, including those needed to sustain the military healthcare services, the appropriate...

Financing the Future III, report 4: healthcare construction trends and capital implications: highlight.(hfma's financing the future)
February 1, 2008... Since 2003, HFMA's Financing the Future project has given healthcare providers information they need to ensure their organizations have the resources necessary to deliver high-quality care for their communities. The project began with a series...

How credit scores can make a difference for your revenue cycle.(REVENUE CYCLE)
February 1, 2008... By now, most Americans have heard of credit scoring. Many of us have taken advantage of getting our credit score for free. But what does a credit score mean to your revenue cycle? If you work for a hospital, it may mean fewer accounts...

Charging for ancillary items and services: 4 myths (and realities).(MEDICARE/MEDICAID)
February 1, 2008... More than two years ago, the Medicare Payment Advisory Commission reported that hospitals often charge much more than their cost for certain services. The Centers for Medicare and Medicaid Services (CMS) confirmed these findings, and last year...

Building a new payment system.
February 1, 2008... [ILLUSTRATION OMITTED] The U.S. healthcare payment system doesn't work. It's unfair, illogical, and nightmarishly complex. Despite recent initiatives, it does not encourage high-quality and cost-effective care. And it struggles to fund...

Mark McClellan, MD, PhD: addressing the quality challenge.(hfm Q & A)(dialogue with Mark McClellan)(Interview)
February 1, 2008... Measuring quality and cost and then using that information to make high-quality health care affordable for everyone is the true goal of healthcare reform. So says Mark McClellan, MD, PhD, senior fellow and director of the Engelberg Center for...

Beyond bolt-ons: breakthroughs in revenue cycle information systems: next-generation revenue cycle information systems go well beyond niche functionality.
February 1, 2008... [ILLUSTRATION OMITTED] "Observe always that everything is the result of change, and get used to thinking that there is nothing that Nature loves so well as to change existing forms and make new ones like them ."--Marcus Aurelius ...

Payer-provider connectivity: progress elusive but possible: HIPAA has failed to simplify claims processing. The current gridlock requires a new federal strategy.(COMMENTARY)(Health Insurance Portability and Accountability Act of 1996)
February 1, 2008... When Congress passed the Health Insurance Portability and Accountability Act (HIPAA) in 1996, it added, almost as an afterthought, administrative simplification provisions to encourage standardization of electronic payment transactions between...

Effective use of business intelligence: leveraging your organization's business data could improve financial and operational performance--and quality of care.(FEATURE STORY)
February 1, 2008... Leaders of healthcare organizations are frequently confronted with questions such as, What services make money? Which ones lose money? What is the BOI of a capital purchase? Are we gaining or losing market share? Are our care processes...

Measuring the benefits of IT-enabled care transformation: when Banner Health implemented evidence-based practices of care at a new hospital, it incorporated healthcare IT--and saved $2.6 million.(FEATURE STORY)
February 1, 2008... Healthcare IT is considered a critical component for improving patient care--but do hospitals realize financial benefits from their healthcare IT investments? The lack of clear answers to that question has led some hospital executives to avoid...

Saying it isn't so: how documentation can decrease denials: since implementing a communication event management system in 2002, Children's Healthcare of Atlanta has overturned more than $2 million in denials.(FEATURE STORY)
February 1, 2008... New healthcare industry concepts are sometimes introduced that radically affect our approach to the daily business of health care. New ideas such as pay for performance and consumer-driven health care are often conceived at the intersection of...

Why can't physicians interoperate? Barriers to adoption of EHRs: the goal of widespread adoption of interoperable electronic health records (EHRs) in the United States remains a mirage, despite new regulations designed to clear the way for such shared information systems.(FEATURE STORY)
February 1, 2008... The Department of Health and Human Services (HHS) recently created an anti-kickback EHR safe harbor and a Stark EHR exception to legal restrictions on efforts of physicians and provider organizations to collaborate in the creation of shared...

Automating claims management improves revenue cycle: web-based technology can help healthcare organizations manage claims and internal workflow processes more efficiently.(FEATURE STORY)
February 1, 2008... Ensuring that payers cut checks for services rendered has become an increasingly challenging task. The complexity of the payment environment has prompted many providers to employ innovative strategies that enhance revenue cycle management....

Postacute strategic planning: preparing for an aging population: is your hospital prepared to offer patients high-quality, cost-effective postacute options? A postacute strategic plan can prepare your organization to serve an aging population.(FEATURE STORY)
February 1, 2008... The U.S. healthcare system is fast approaching a time when having a postacute care strategy will not be simply a matter of choice for the nation's hospitals and health systems. Demand for postacute services will increase as baby boomers in...

Tracking by weekday.(hfm TOOLBOX)
February 1, 2008... Understanding the past is an important way of helping us predict the future. We use that concept regularly in budgeting, modeling, and analyzing results. We often use prior year numbers, adjusted for predicted changes, to come up with estimates...

When participative management leads to garbled communication: are you clear and concise when you communicate with your employees?(LEADERSHIP AND MANAGEMENT)
February 1, 2008... We've written about management styles that are appropriate to the changing workforce ("Changing Leadership Styles," February 2007 hfm) and styles that emphasize tasks, but in a kinder, friendlier way ("The Benevolent Autocrat: Is It the Bight...

Good data stewardship makes good cents: quality measurement and reporting are becoming the ticket to incentives, malpractice premium credits, telecommunications discounts, and many other forms of support for adopting electronic health records (EHRs) and other clinical IT.(INSIDE IT)
February 1, 2008... However, increasing interest in quality measurement and reporting is drawing attention to the need for more accurate, consistent, and timely data. The Sarbanes-Oxley (SOX) Act of 2002 created a sense of urgency for senior executives in...

Calendar.(Calendar)
February 1, 2008... NATIONAL EVENTS February 5-8, March 3-6, Seminars will cover financial and May 5-8 healthcare business management, HFMA s Spring Seminars revenue cycle improvements, consumer- Charlotte,...

Trent Chastain.(PEOPLE)(appointment of Trent Chastain)(Brief article)
February 1, 2008... [ILLUSTRATION OMITTED] Chastain has been named director, patient financial services, Riverview Hospital, Noblesville, Ind. Previously, he was manager, revenue cycle operations, St. Joseph Hospital/St. Vincent Health, Kokomo, Ind.

Lynn A. Gipson, CPA.(PEOPLE)(appointment of Lynn A. Gipson at Harris Methodist Forth Worth Hospital)(Brief article)
February 1, 2008... [ILLUSTRATION OMITTED] Gipson has been appointed vice president, finance, Harris Methodist Forth Worth Hospital, Fort Worth, Texas. Formerly, he was corporate director, decision support, Texas Health Resources, Arlington, Texas.

Darrin Mikula, CHFP.(PEOPLE)
February 1, 2008... [ILLUSTRATION OMITTED] Mikula has been named director of finance, St. Clair Memorial Hospital, Pittsburgh. He had been controller, Bradford Regional Medical Center, Bradford, Pa.

Gary R. Moss, CPA.(PEOPLE)(appointment of Gary R. Moss)(Brief article)
February 1, 2008... [ILLUSTRATION OMITTED] Moss has been appointed to Grant Thornton's National Health Care Industry Leadership team, Grant Thornton, LLP, Milwaukee. The appointment is in addition to his role as leader of Grant Thornton's Wisconsin Health...

Jerrie K. Weith, FHFMA.(PEOPLE)(appointment of Jerrie K. Weith)(Brief article)
February 1, 2008... [ILLUSTRATION OMITTED] Weith has joined Anders Minkler & Diehl, LLP, St. Louis, as director, healthcare services group. Previously, she was founder and president, Healthcare Management Alternatives, Inc., Belleville, Ill.

Chigger Bynum, CPA.(PEOPLE)(appointment of Chigger Bynum)(Brief article)
February 1, 2008... Bynum has been appointed vice president, financial and employee services, HCA Inc., Nashville. Previously, she was CFO, John Randolph Medical Center, Hopewell, Va. (an HCA subsidiary).

Patrick Fields.(PEOPLE)
February 1, 2008... Fields has been named vice president, revenue cycle, Vibra Healthcare, LLC, Houston. Formerly, he was corporate manager, patient accounting, The Methodist Hospital System, Houston.

Erich Koch, CHFP.(PEOPLE)
February 1, 2008... Koch has been appointed director of finance and CFO, Community Clinic, Inc., Rockville, Md. Previously, he was controller, Community Health Association of Spokane, Spokane, Wash.

Thomas J. Morse.(PEOPLE)
February 1, 2008... Morse has joined North Philadelphia Health System, Philadelphia, as director of cost reimbursement. He had been controller, Greenacres Health Systems, Ivyland, Pa.

Jeffrey L. Perkins, CHFP, CIA, CPA.(PEOPLE)(appointment of Jeffrey L. Perkins)(Brief article)
February 1, 2008... Perkins has been named director of budget, finance, facilities services, and research administrative manager, the University of South Carolina School of Medicine, Columbia, S.C. He had been director of administration and business operations,...

Thomas S. Visotsky.(PEOPLE)
February 1, 2008... Visotsky has been appointed executive vice president, business development, CodeMap, Barrington, Ill. Formerly, he was vice president, sales, Concuity, Vernon Hills, Ill.

Trends in hospital uncollectible revenues.(DATA TRENDS)
February 1, 2008... Hospitals must increase revenues and improve collections to answer continuing cost pressures. General acute care community hospitals have pursued several strategies, with some success, to enhance net operating revenues between 2006 and 2007....

Payment, politics, and the need for the leadership: it's early 2008, and I'm already sick of the 2008 presidential election campaign. And it will only get worse as state, county, and city candidates join the fray.(FROM THE PRESIDENT)(Health Insurance Portability and Accountability Act of 1996)(Viewpoint essay)
February 1, 2008... So I was struck by Jeff Goldsmith's commentary in this issue of hfm, which identifies political leadership as the key to achieving the elusive goal of improving healthcare claims processing. Goldsmith discusses the optimism that greeted the...