Healthcare Financial Management articles from July 2003

Healthcare Financial Management archives from July 2003

CMS: final outlier payment rule eases burden on hospitals. (Policy Watch).(final Medicare outlier rules are published)(Brief Article)
July 1, 2003... On June 9, CMS published in the Federal Register the final Medicare outlier rule with revisions intended to "avoid major disruption to hospitals that will be adversely affected by the changes we are adopting," according to CMS administrator Tom...

Medicare payment improvements dropped from final tax bill. (Policy Watch).(the Jobs and Growth Tax Reconciliation Act of 2003 does not contain the additional Medicare provider payments approved by the Senate)(Brief Article)
July 1, 2003... The $350 billion Jobs and Growth Tax Reconciliation Act of 2003 ([HR.sub.2]) that President Bush signed on May 28 did not contain the roughly $25 billion in additional Medicare provider payments that had been approved by the Senate. Most of...

CMS proposes Medicare inpatient payment rates for 2004. (Policy Watch).(Brief Article)
July 1, 2003... CMS has proposed a 3.5 percent Medicare hospital inpatient prospective payment increase for [FY.sub.04] services. In the proposed rule, published in the May 19 Federal Register, CMS was required to follow current law, which requires the...

Mortgage financing outlook improves for some hospitals. (Policy Watch).(hospitals may have another capital financing option)(Brief Article)
July 1, 2003... Some hospitals may soon have another capital financing option, according to legislation currently pending in the Senate. In states without a certificate-of-need process, the Hospital Mortgage Insurance Act of 2003 (HR 659), would allow the...

CMS explains payment limits for outpatient rehab. (Policy Watch).(CMS issues a program memorandum)(Brief Article)
July 1, 2003... CMS issued a program memorandum (PM AB-03-073) on May 23 explaining the agency's implementation of outpatient rehabilitation payment limits. According to CMS, the 2003 payment limits for outpatient rehabilitation services per beneficiary per...

State Supreme Court decision poses threat to capital access. (Policy Watch).(South Dakota's Supreme Court rules that the state can challenge Banner Health System's sale of hospital and nursing home facilities)(Brief Article)
July 1, 2003... On May 22, the South Dakota Supreme Court unanimously found that the state of South Dakota can continue to challenge Banner Health System's sale of hospital and nursing home facilities in the state. The central issue is the system's sale of...

FASB addresses expensing of stock options. (Policy Watch).(Brief Article)
July 1, 2003... FASB plans to issue a proposed standard later this year that would require companies to recognize stock options as an expense in their financial statements and to measure exchanges involving stock-based compensation at fair value. During a May...

The HHS Office of Inspector General's updated list of excluded individuals and entities (LEIE). (In Brief).(Health and Human Services)(Brief Article)
July 1, 2003... The HHS Office of Inspector General's updated list of excluded individuals and entities (LEIE), a complete database file containing all individuals and entities excluded from participation in federal healthcare programs, is now available....

HHS has released nearly $14 million in grants to improve rural healthcare delivery and expand access to healthcare services for those residing in rural communities. (In Brief).(Health and Human Services)(Brief Article)
July 1, 2003... HHS has released nearly $14 million in grants to improve rural healthcare delivery and expand access to healthcare services for those residing in rural communities, HHS Secretary Tommy Thompson announced. The grants, administered by the Health...

FY04 skilled nursing PPS rates proposed. (Policy Watch).(a discussion of a proposal of a 2.9% increase in payment rates to skilled nursing facilities)(Brief Article)
July 1, 2003... On May 16, CMS published a rule in the Federal Register proposing a 2.9 percent increase in FY04 payment rates to skilled nursing facilities (SNFs) The update would result in an additional $400 million in Medicare payments to facilities that...

CMS announces 2004 Medicare+Choice payment rates. (Policy Watch).(Brief Article)
July 1, 2003... On May 12, CMS announced 2004 Medicare+Choice payment increases that CMS administrator Tom Scully called "insufficient." The announcement came in a letter addressed to Medicare+Choice organizations and other interested parties. The "floor"...

States grapple with high pharmaceutical costs: states continue to face alarming deficits as they address FY03 budgets and look ahead to state finances for FY04. (State Policy Watch).
July 1, 2003... In late April, 36 states faced a cumulative budget gap of $25.7 billion for FY03, a 47 percent increase over the November predictions when states reported a cumulative gap of just $17.5 billion. State lawmakers recognize that Medicaid costs,...

HFMA: a learning experience; when I attended my first HFMA chapter meeting, the best of the best were sharing their ideas and suggestions with me. (From the Chairman).(Healthcare Financial Management Association)(Column)
July 1, 2003... They also were asking me for my ideas on how to solve their problems. Learning is an important part of the HFMA experience, and people are an important resource. HFMA offers a wide range of educational resources that members can use to...

The final cost savings frontier: new revenue cycle outsourcing approaches.(advice on managing health care costs)(Column)
July 1, 2003... Beth Kost VP Strategic Business Development, Precyse Solutions Security Safeguards Let's start with the obvious--do you think you have maximized the traditional ways of managing your costs? Has your institution completed the...

Fitch Ratings projects lower costs for HIPAA compliance, survey shows varied HIPAA readiness. (Industry Watch).
July 1, 2003... HIPAA compliance will require a significant amount of capital from providers, according to a June 3 Fitch Ratings report, but HIPAA-related costs will be less than originally estimated based on the projected costs for Fitch's rated hospitals...

Investors Conference speakers warn of tough times ahead. (Industry Watch).(tougher times are ahead for the finances of hospitals)(Brief Article)
July 1, 2003... The recent financial environment for hospitals has been relatively calm, with more stable Medicare payments and more favorable managed care contract negotiations, Deborah Lawson, director of the Equity Research Division for investment banking...

Rates, causes of closures similar for rural and urban hospitals. (Industry Watch).(the rate of both rural and urban hospital closures was about 1%/yr over the previous decade)(Brief Article)
July 1, 2003... The rate of both rural and urban hospital closures was about 1 percent per year over the previous decade, according to two recent OIG reports. Between 1990 and 2000, 200 rural hospitals closed (7.8 percent), and 296 urban hospitals closed (10.6...

Three times as many long-term care workers needed by 2050. (Industry Watch).(by 2050, 5.7 million-6.5 million long-term care workers will be needed to meet the healthcare needs of the baby boomers)(Brief Article)
July 1, 2003... By 2050, between 5.7 and 6.5 million long-term care workers will be necessary to meet the healthcare needs of the 27 million baby boomers, according to the report The Future Supply of Long-Term Care Workers in Relation to the Aging Baby Boom...

Specialty hospitals treat fewer severely III patients. (Industry Watch).(Brief Article)
July 1, 2003... Specialty hospitals tend to treat fewer patients with severe illnesses than general hospitals, according to a study released by the U.S. General Accounting Office (GAO). The report provides information on physician ownership, patient...

JCAHO tackles emergency department overcrowding. (Industry Watch).(the Joint Commission on Accreditation of Healthcare Organizations says that hospitals should develop plans for ER overcrowding)(Brief Article)
July 1, 2003... Hospitals should develop and implement plans to address overcrowding in emergency departments, the Joint Commission on Accreditation of Healthcare Organizations (JOAHO) said in a proposed standard released May 9. The proposal calls on hospitals...

Survey: software solutions streamline supply chain. (Industry Watch).(information technology for healthcare organizations)(Brief Article)
July 1, 2003... Information technology plays a key role in healthcare organizations' document and supply-chain management, according to the 2003 HIMSS/Lanier Document Management and Supply Chain Survey. More than two-thirds of respondents named software...

OIG reports on tax savings. (Industry Watch).(Brief Article)
July 1, 2003... If all OIG-recommended actions were fully implemented the agency would save American taxpayers more than $12 billion in the first half of FY03 according to the OIG's Semiannual Report released June 3. Unfortunately, the OIG says, only a small...

Rep. Nancy Johnson receives BOD Award. (HFMA News).(Brief Article)
July 1, 2003... Rep. Nancy L. Johnson (R-Conn.) is the 2003 recipient of HFMX's distinguished Board of Director's Award, which is bestowed on those who make remarkable contributions to the healthcare financial management profession. Johns on has continually...

Report encourages Patient Friendly Billing. (HFMA News).(Brief Article)
July 1, 2003... The PATIENT FRIENDLY BILLING * project recently unveiled a report summarizing the group's work to date and providing new recommendations and tools for healthcare providers to implement. The project is part of a continued effort to develop...

2003-04 Regional Executives begin terms. (HFMA News).(Healthcare Financial Management Association)
July 1, 2003... In June, 11 Regional Executives began their one-year terms. These individuals served as Regional Executives-elect since June 1, 2002 and were elected by Chapter Presidents-elect during the 2001 Fall Presidents Meetings and the 2002 Leadership...

Testing and Certification assistance available. (HFMA News).(HFMA recently releases a report to help in the handling of HIPAA administration)(Brief Article)
July 1, 2003... Under HIPAA administrative simplification, all entities must test and certify that their transactions have the proper formats and data contents specified in the implementation guides. To aid them in this process, HFMA recently released Testing...

HFMA announces 2003-04 Board of Examiners. (HFMA News).
July 1, 2003... HFMA has appointed five members and a chairman to the 2003-04 Board of Examiners (BOE). Members of HFMA's BOE are responsible for defining the HFMA professional certification process, exam administration procedures, and certification...

Medicaid hits home and states struggle. (Eye on Washington).(several states still have trouble with Medicaid and balancing their budgets)
July 1, 2003... Despite the approximately $10 billion earmarked for "Medicaid relief" in the 2003 bipartisan tax-cut bill passed by Congress in late May, several states are still floundering in their attempts to balance their state budgets. Forty-five...

Joseph F. Corfits, Jr., Senior Vice President of Finance and CFO, Central Iowa Health System. (Executive Insights).(discusses his company's operations)(Company Profile)
July 1, 2003... The U.S. Department of Justice in Washington, D.C., was the recent destination of a group of board members and executives from Joseph Corfits' organization, Central Iowa Health System. Corfits is senior vice president of finance and CFO of the...

Caritas Norwood Hospital: back from the brink. (Business).
July 1, 2003... Taking a hospital from a $17 million dollar loss to a $4 million profit in four years is no easy task. Yet, that is exactly what Caritas Norwood Hospital, a 295-bed community hospital in Norwood, Mass., did. In the process, the hospital made...

Tactics for thwarting silent PPO activity. (Managed Care).(a discussion of silent PPO payer arrangements for the health care industry)
July 1, 2003... Hospitals and medical groups signing contracts with a large PPO in Indiana did not realize that the PPO had arrangements with well over 100 payers to access the PPO's network of providers. Furthermore, the providers did not realize that their...

Telemedicine payment: then and now. (Medicare/Medicaid).(a discussion of the development of telemedicine)
July 1, 2003... Technical advances in telecommunications have proven extremely useful in rural areas, allowing patients to have access to specialists and advanced healthcare technology without having to travel great distances. Such technology also is a...

Streamlining the supply chain. (Cover Story).(for the health care industry)(Cover Story)
July 1, 2003... To substantially reduce supply-related costs, a hospital must develop a fully integrated enterprisewide supply chain in which all processes are coordinated and supported by state-of-the-art technology. Does your organization's supply chain...

Cutting medical transcription costs: one health system is saving up to 38 percent on its medical transcription costs by using home-based, production-based full-time employees. (Feature Story).
July 1, 2003... Looking for ways to cut costs has become second nature to healthcare providers. One area often overlooked as a substantial cost-saving opportunity is medical transcription. At one time, most medical transcription was performed by in-house...

Just what the doctor ordered. (Feature Story).(hospitals need to include physicians in purchase activities and to follow a data-driven selection process)
July 1, 2003... To reduce costly supply variances and satisfy physicians' supply needs, hospitals should include physicians in purchase activities and encourage a data-driven selection process. Supplies and purchased services are among a hospital's...

No place like home: faced with a shortage of clinical coders, some healthcare providers are finding that developing home-based opportunities can aid staff retention and improve their bottom line. (Feature Story).
July 1, 2003... Short on clinical coders these days? You're not alone. The national vacancy rate for clinical coding and billing personnel is nearly 20 percent, according to a 2001 American Hospital Association study. That's even higher than the vacancy rate...

Issues in outpatient PPS: keys to successful revenue cycle management.(a discussion of revenue performance management in hospitals)
July 1, 2003... Revenue performance management requires an understanding of an integrated model that encompasses the people, processes, and systems that facilitate the flow of patient data along each step of the revenue cycle. To be successful, hospitals must...

Whistle-blowing: does anyone want to hear? (Leadership and Management).(healthcare organizations should be more open to whistle-blowing from employees)
July 1, 2003... The public outcry over the deceptive accounting practices of companies such as Enron and WorldCom last year led some observers to question why no one blew the whistle on these activities earlier. Ralph Nader responded, "What amazes me is that...

Thin is in: web-based systems enhance security, clinical quality. (Digital Perspectives).(for hospitals)
July 1, 2003... To improve clinical quality, hospitals need to ensure that medical practitioners can remotely access hospital patient records, critical pathways, and clinical outcomes tracking. Of course, such capabilities also present an enormous...

Understanding Health System Change: Local Markets, National Trends. (Bookshelf).(book review)(Book Review)
July 1, 2003... Edited by Paul B. Ginsburg and Cara S. Lesser Health Administration Press, Chicago, 2001 pages; $50 This book provides useful background for readers on the Centers for Health System Change's ongoing examination of ways 12 metropolitan...

The Global Challenge of Health Care Rationing. (Bookshelf).(book review)(Book Review)
July 1, 2003... Edited by Angela Coulter and Chris Ham Open University Press Buckingham, Philadelphia, 2000 267 pages; $110 Healthcare rationing, or setting priorities on how to use resources and whom to serve, is an enigma across the globe. Policymakers...

Christus Schumpert Health System. (People).(Grouse Hospital in Syracuse, New York, hires Linda N. Ollis as COO)(Brief Article)
July 1, 2003... Linda N. Ollis (Central New York Chapter) Ms. Ollis has been named COO, Grouse Hospital, Syracuse, N.Y. Previously, she was regional COO, Christus Schumpert Health System, Shreveport, La.

Fletcher Allen Health Care. (People).(Yale-New Haven Health hires Donald E. Clark as system director of internal audit)(Brief Article)
July 1, 2003... Donald E. Clark (New Hampshire-Vermont Chapter) Mr. Clark has joined Yale-New Haven Health, New Haven, Conn., as system director of internal audit. Previously, he was director of compliance, Fletcher Allen Health Care, Burlington, Vt.

Rush Copley Medical Center. (People).(promotes John Diederich to vice president of ancillary operations)(Brief Article)
July 1, 2003... John Diederich (First Illinois Chapter) Mr. Diederich has been promoted from director, patient financial services, to vice president, ancillary operations, Rush Copley Medical Center, Aurora, Ill.

US Banc Corp. (People).(US Banc Corp. Piper Jaffray hires Jordan R. Melick as a vice president)(Brief Article)
July 1, 2003... Jordan R. Melick (Minnesota Chapter) Mr. Melick has joined US Banc Corp. Piper Jaffray, Minneapolis, as vice president, finance, fixed income capital markets. Formerly, he was director, finance, University of Pittsburgh Medical Center,...

Intermountain Health Care. (People).(appoints Bert Zimmerli as CFO)(Brief Article)
July 1, 2003... Bert Zimmerli, CPA (Texas Gulf Coast Chapter) Mr. Zimmerli has been appointed CFO, Intermountain Health Care, Salt Lake City. Formerly, he was executive vice president, CFO, Methodist Hospital System, Houston.

Pinnacle Healthcare, Inc. (People).(appoints Bernadette Kelleher as director of managed care)(Brief Article)
July 1, 2003... Bernadette Kelleher (Hudson Valley Chapter) Ms. Kelleher has been appointed director, managed care, Pinnacle Healthcare, Inc., Valhalla, N.Y. Previously, she was director, managed care contracting, Provider Service Network, Boston.

William Beaumont Hospital. (People).(promotes Maureen Fitzgerald)(Brief Article)
July 1, 2003... Maureen Fitzgerald (Eastern Michigan Chapter) Ms. Fitzgerald has been promoted from business support analyst to corporate payment validation analyst, William Beaumont Hospital, Troy, Mich.

Madole Wagner. (People).(Rebecca L. Speight joins BKD LLP)
July 1, 2003... Rebecca L. Speight, CHFP, CPA (Oklahoma Chapter) Ms. Speight has joined BKD, LLP, Tulsa, Okla., as managing consultant. Formerly, she was senior manager, Madole Wagner, PLLC, Tulsa.

Parkview Adventist Medical Center. (People).(appoints Kristin R. Moulton as accounting manager)(Brief Article)
July 1, 2003... Kristin R. Moulton (Maine Chapter) Ms. Moulton has been appointed accounting manager, Parkview Adventist Medical Center, Brunswick, Maine. She had been senior financial analyst, Maine General Health, Augusta, Maine.

Veritus Medicare Services. (People).(announces the retirement of director of audit Richard C. Rinschler)(Brief Article)
July 1, 2003... Richard C. Rinschler (Western Pennsylvania Chapter) Mr. Rinschler has retired as director of audit, Veritus Medicare Services of Highmark Blue Cross Blue Shield, Pittsburgh. He is a recipient of HFMA's Foilmer Bronze, Reeves Silver, Muncie...

St. Francis Hospital & Health Center. (People).(names David Nelson as vice president of finance and CFO)(Brief Article)
July 1, 2003... David Nelson (First Illinois Chapter) Mr. Nelson has been named vice president, finance, and CFO, SSM St. Francis Hospital & Health Center, Blue Island, Ill. Formerly, he was vice president, finance, and CFO, Mercy Health System of Chicago....

Vista Health System. (People).(promotes Fatima Elias)(Brief Article)
July 1, 2003... Fatima Elias (New Jersey Chapter) Ms. Elias bas been promoted from finance manager to director of financial services, Vista Health System, Summit, N.J.

Peer comparisons promote improved billing practices. (Data Trends).(hospitals should compare billing patterns among peer hospitals)(Illustration)
July 1, 2003... Hospitals can best understand the fall range of factors that can affect their outpatient revenue by comparing billing patterns among peer hospitals. To identify missed charges, regardless of cause, this comparison must consider both primary and...

Patient friendly billing-no longer an oxymorton. (From the President).(the health care industry is moving toward true 'patient friendly billing')(Editorial)
July 1, 2003... Now, among healthcare executives, the term is known as an HFMA-led project to make patient bills clear, concise, correct, and patient friendly. I am proud to say that this change in perception is the result of a partnership among major...

Dear HFMA member or other healthcare finance professional.
July 1, 2003... HFMA is pleased to announce that the Association's 2003 compensation survey was a tremendous success. More than 2,300 individuals participated representing 11 positions in healthcare finance. Conducted on-line for the first time, the survey...

CFO compensation continues to soar.(in the health care industry)(Illustration)
July 1, 2003... CFOs are reaping the benefits of their hard work to stabilize and improve the financial performance of their institutions with compensation increases averaging nearly double the rate of inflation. Compensation for hospital and healthcare...

Middle management pay shows steady increase: increased educational attainments are needed if nonmanagerial finance professionals and middle managers wish to advance both their careers and their compensation gains.(health care industry executive compensation)(Illustration)
July 1, 2003... Directors of Finance are the most highly compensated middle managers in healthcare organizations, with combined salary and variable compensation averaging $91,700, according HFMAs 2003 compensation survey. These results continue a four-year...