Healthcare Financial Management articles from July 2005

Healthcare Financial Management archives from July 2005

Hearing challenges community benefit concept.(POLICY WATCH)
July 1, 2005... The question of whether exempt hospitals provide adequate services to their communities to justify their exempt status was the focus of the May 26 House Ways and Means Committee hearing, "A Review of the Tax-Exempt Hospital Sector." Several...

National health information network plans announced.(POLICY WATCH)(Brief Article)
July 1, 2005... On June 6, Department of Health and Human Services Secretary Michael Leavitt announced development plans for a national health information network and the creation of a healthcare IT standards federal advisory commission. On June 7, HHS issued...

The effective date by which all organ procurement organizations, rural health clinics, federally qualified health centers, and community mental health centers are required to submit their Medicare cost reports in a standardized electronic format has been revised.(Public Notice)
July 1, 2005... The effective date by which all organ procurement organizations, rural health clinics, federally qualified health centers, and community mental health centers are required to submit their Medicare cost reports in a standardized electronic...

The Financial Accounting Standards Board has issued Statement No. 154, Accounting Changes and Error Corrections, a replacement of Accounting Principles Board Opinion No. 20 and FASB Statement No. 3.(Brief Article)
July 1, 2005... The Financial Accounting Standards Board has issued Statement No. 154, Accounting Changes and Error Corrections, a replacement of Accounting Principles Board Opinion No. 20 and FASB Statement No. 3. The statement applies to all voluntary...

Medicaid advisory commission chartered.(POLICY WATCH)(Brief Article)
July 1, 2005... On May 20, HHS Secretary Michael Leavitt announced issuance of the charter for the advisory commission charged with identifying Medicaid cost savings and reforms. Congress directed HHS to form the commission as part of the FY06 federal budget...

UB-04 specifications now available.(POLICY WATCH)(Brief Article)
July 1, 2005... The National Uniform Billing Committee, of which HFMA is a founding member, unveiled the new UB-04 form at its May 12 meeting. The UB-04 contains a number of improvements that resulted from nearly four years of research, including better...

Hospice conditions of participation changes proposed.(POLICY WATCH)(Brief Article)
July 1, 2005... CMS published a new rule on May 27 proposing changes to the Medicare hospice conditions of participation, which the agency says would ease regulatory burdens on hospice providers and provide high-quality care to Medicare beneficiaries. Some of...

Bill would revise physician payment formula.(POLICY WATCH)(Brief Article)
July 1, 2005... A bill has been introduced in the House of Representatives that would permanently fix the flawed Medicare physician payment formula. Under the Preserving Patient Access to Physicians Act of 2005 (H.R. 2356), the current formula for calculating...

Promoting access to care in rural and underserved areas: is there a physician shortage in the United States? Some statistics say "no." Others say "yes.".(STATE POLICY WATCH)
July 1, 2005... This report was prepared for hfm by Andrew McKinley, policy analyst, NETSCAN iPublishing's Health Policy Tracking Service. His e-mail address is andrew. mckinley@netscan.com. For more information about HPTS, go to www.hpts.org/info. In...

Understanding the business side of health care: every morning when I come in to work, I try to walk around the hospital to get a sense of what is going on in the facility.(FROM THE CHAIRMAN)
July 1, 2005... I usually go by the operating room and then swing by endoscopy, vascular lab, and renal dialysis. If Coach Ray, one of our dialysis patients, is in, I'll stop, say hello, and talk sports with him. Another area that I'll visit is our...

Medical costs exceed $12k for typical family.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... The total medical costs paid by a typical American family of four, with insurance benefits provided by a preferred provider organization, are estimated to be $12,214 in 2005, according to the Milliman Medical Index, an annual medical costs...

Study: federal health coverage expansion proposals have disparate impact across states.(INDUSTRY WATCH)
July 1, 2005... Some states could reduce their uninsured rate by as much as 20 percent under federal policy proposals such as tax credits or public coverage expansions, according to a new study by Columbia University researchers. Other states' uninsured rates...

FASB proposes GAAP hierarchy.(Financial Accounting Standards Board., Generally Accepted Accounting Principles.)(Brief Article)
July 1, 2005... The Financial Accounting Standards Board recently published an exposure draft, The Hierarchy of Generally Accepted Accounting Principles, in connection with its effort to improve the quality of financial accounting standards and the...

Supreme court overturns Arthur Andersen conviction.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... In a unanimous ruling on May 31, the U.S. Supreme Court overturned the obstruction of justice conviction of accounting firm Arthur Andersen. The court found that the jury received instructions from the judge that did not convey the...

New commission on a high performance health system.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... The Commonwealth Fund, a private foundation supporting independent research on health and social issues, announced on June 1 the creation of a Commission on a High Performance Health System, which aims to move the United States toward a...

Hospital charity care may be underreported, survey finds.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... Hospitals are absorbing higher levels of charity care and bad debt and may be providing far more free care than the $25 billion they report annually, according to a report released by PricewaterhouseCoopers. Although no one knows the exact...

National healthcare expenditures expected to grow at 7 percent annually through 2014.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... National healthcare expenditures are projected to reach $3.6 trillion in 2014, growing at an average annual rate of 7.1 percent during the forecast period 2003-14. As a share of gross domestic product, healthcare spending is projected to reach...

NCQA to develop EHR system certification.(National Committee for Quality Assurance., electronic health record.)(Brief Article)
July 1, 2005... The National Committee for Quality Assurance announced plans to develop a new certification program for electronic health record systems. The program will evaluate EHR systems for compliance and compatibility with the data collection and...

Older Americans less willing to sacrifice physician-hospital choice to save costs.(INDUSTRY WATCH)
July 1, 2005... Elderly Americans are much less willing than working-age Americans to limit their choice of physicians and hospitals to save on out-of-pocket medical costs, according to findings from a new national study by the Center for Studying Health...

Quotes of note.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... "The action today by the Democratic House and Senate leadership should send a clear message that the Medicaid commission is nothing but a farce." --Sen. Jay Rockefeller, joining the Democratic chorus rejecting the Bush Medicaid commission...

Shrinking number of emergency departments handle more visits.(INDUSTRY WATCH)(Brief Article)
July 1, 2005... Fewer emergency departments are handling an increased number of visits, according to anew report released by the Centers for Disease Control and Prevention. From 1993 through 2003, the number o| emergency department visits increased from 90.3...

Hoyler receives Morgan Award.(HFMA NEWS)(Geraldine M. Hoyler., Frederick C. Morgan Achievement Award.)
July 1, 2005... Geraldine M. Hoyler, C.S.C., FHFMA, CPA, was recently awarded the 2005 Frederick C. Morgan Achievement Award--the Association's highest individual honor--this June at HFMA's Annual National Institute in Las Vegas. Sister Geraldine is the 47th...

See ANI memories online.(Healthcare Financial Management Association's Annual National Institute.)(Brief Article)(Calendar)
July 1, 2005... With so many sessions, exhibits, and social activities, no one can possibly take in everything that happens at ANI. Find out what you missed at this year's convention in Las Vegas in June by logging on to www.hfma.org/ani. The site will offer a...

HFMA submits statement to house ways and means committee.(HFMA NEWS)(Brief Article)
July 1, 2005... HFMA submitted a statement on the attributes of tax-exempt hospitals for the written record of the House Ways and Means Committee hearing May 26. HFMA contends that when evaluating whether hospitals merit their tax-exempt status, legislators...

Growth, technology focus at investor conference.(HFMA NEWS)(Brief Article)
July 1, 2005... Despite tightening access to capital, many healthcare providers are focused on growth strategies and significant technology investments, according to speakers at the Fifth Annual Non-Profit Investor Conference, held May 20 and 21 in New York....

Correction.(HFMA NEWS)(Correction Notice)
July 1, 2005... In the June 2005 issue of hfm, an incorrect source was cited for the four exhibits in the feature "Risk Factors" by Catherine J. Robbins, KC Connors, Timothy J. Sheehan, and James S. Vaughan (page 78). The correct source for the exhibits is...

Pushing healthcare IT into the 21st century: talk about your political odd couples.(EYE ON WASHINGTON)
July 1, 2005... Who could have ever imagined seeing former Speaker of the House Newt Gingrich standing side-by-side with former first lady and now senator from New York Hillary Rodham Clinton announcing their shared plan for the nation's healthcare system? ...

Making prices make sense: a balanced approach to defensible prices: this project is a collaborative effort by MedAssets and the Healthcare Financial Management Association.
July 1, 2005... It used to be that a hospital supply, pharmaceutical, or service would cost a certain amount and the hospital would charge a certain amount. Any relationship between the two was something that perhaps only a CFO could decipher. But...

Vital signs: taking the pulse of your managed care contract performance.(MANAGED CARE)
July 1, 2005... AT A GLANCE Three essential baseline measures of managed care performance that should be reported on a regular basis are: * Overall profitability of the organization's managed care portfolio * Payer mix and profitability *...

Counter intelligence?(MEDICARE/MEDICAID)
July 1, 2005... AT A GLANCE A hospital's bed count can have a significant effect on its Medicare payments. Determining what to count is a challenge, however, because published guidance and response to litigation often vary. Providers should: * Pay...

Performance is reality how is your revenue cycle holding up? Do the typical key performance indicators--gross receivables, accounts receivable days, and cash collections--tell you enough about your hospital revenue cycle?(Cover Story)
July 1, 2005... AT A GLANCE Expanding your organization's revenue cycle performance indicators beyond receivables, cash, and A/R days can help you: * Keep a record and tell a story * Benchmark against your goals and industry best practices *...

Using report cards to sustain revenue cycle improvement: we manage what we can measure, and we manage well what we measure well.(Cover Story)
July 1, 2005... AT A GLANCE Five guiding principles can help your organization achieve revenue cycle success: * Have appropriate job functions and work flow design in place. * Elevate staff performance through quality and productivity goals. ...

Scorecards and dashboards using financial metrics to improve performance: the balanced scorecard and its natural subset, the dashboard, can help keep you focused on the critical areas that affect your hospital's overall performance.(FEATURE STORY)
July 1, 2005... AT A GLANCE To develop a dashboard reporting system for hospitals, four critical factors should be taken into account: * Factors most important to the organization's success * Critical drivers that influence performance attainment...

The challenge of delivering cost-effective, quality care.
July 1, 2005... The rising cost of healthcare has placed enormous demands on hospital administrators. According to a recent study by the American Hospital Association, nearly 60% of all hospital costs go toward wages and benefits for caregivers. The...

Fixing a broken healthcare system: we all know that the healthcare system is broken. Badly.(COMMENTARY)
July 1, 2005... AT A GLANCE The U.S. healthcare system can improve if it: * Recognizes and rewards superior safety and overall value * Shares standard measures of performance And it seems like consumers--from big companies purchasing large...

Improving hospital budgeting and accountability: a best practice approach: if your organization is struggling to achieve its budget targets, your budget process itself may be the culprit. It may also hold the solution.(FEATURE STORY)
July 1, 2005... AT A GLANCE Best practices in setting and managing healthcare organization budgets include: * Using comparative benchmarks * Setting accurate, high-performance department budgets * Establishing a culture of accountability ...

Specialty hospital rise could add to full-service hospital woes: do physician-owned specialty hospitals adversely affect the communities they are intended to serve? Results of a recent study suggest they do.(FEATURE STORY)
July 1, 2005... AT A GLANCE * Physicians may refer patients to specialty facilities in which they have an ownership interest, and they have no qualms about doing so. * Specialty hospitals typically concentrate on delivering the highest-paying...

National health IT initiative moves into action an interview with David Brailer.(HEALTHCARE POLICY)(United States. Department of Health and Human Services)(Interview)
July 1, 2005... "It's not going to happen magically overnight. It's going to take a lot of work over the next couple years for those pieces to come together," David J. Brailer, MD, PhD, national coordinator for health IT in HHS, said in an interview with hfm....

Revenue cycle upgrades: increase cash flow and lower expenses.(hfma roundtable)
July 1, 2005... About HFMA Roundtables With this article, HFMA continues a series of "virtual" discussions to offer thought leadership and practical perspectives on healthcare financial issues by leading industry professionals. This roundtable offers...

Four methods for improving performance: a comparison.(hfm TOOLBOX)
July 1, 2005... Healthcare organizations face the continuing challenge of maintaining or improving shrinking margins while providing high-quality service. There are many approaches to containing costs while improving performance. Four of the most popular are...

Profitable growth requires choices: are you waiting for the revenue fairy to help your organization grow?(LEADERSHIP AND MANAGEMENT)
July 1, 2005... I recently interviewed a number of hospital board members as part of a consulting engagement; the issue of growth was a common denominator in all of those interviews. One board member, a successful banker who has seen his share of ups and downs...

Working with the CIO: how well do you know your CIO?(chief information officer)
July 1, 2005... Many healthcare organizations have a chief information officer. A competent CIO can be a great management asset, and a strong partnership between the CFO and the CIO is invaluable. To build that partnership, it's helpful to consider three basic...

Betting on the 80/20 rule: it's a familiar equation in most industries: 80 percent of your revenue comes from 20 percent of your customers. Is that also true for health care--an industry that is mandated to serve all who come?(NEW REVENUE GROWTH)(El Camino Hospital (Mountain View, California))
July 1, 2005... For El Camino Hospital in Mountain View, Calif., the answer is "yes." Its discoveries--and, more important, its strategies--may hold insight for others who find themselves facing the "revenue monolith," that ever-present challenge of "growth"...

Calendar.(Calendar)
July 1, 2005... Fall 2005 Seminars Level Seminar Sept. 26-29 Oct. 17-20 Seattle Cambridge, Mass. ...

Detroit Medical Center.(appointments)(Brief Article)
July 1, 2005... Benjamin Carter, FHFMA, CPA (Eastern Michigan Chapter) Mr. Carter has been appointed executive vice president and COO, Detroit Medical Center, Detroit. Previously, he was CFO, Oak-wood Healthcare, Inc., Dearborn, Mich.

Wilson N. Jones.(appointments)(Brief Article)
July 1, 2005... David Faith (Lone Star Chapter) Mr. Faith has been named director, decision support and financial analysis, Wilson N. Jones, Sherman, Texas. Formerly, he was senior financial analyst, Baylor Health Care System, Dallas.

Scott and White Clinic.(appointments)(Brief Article)
July 1, 2005... Ronald W. Holder, Jr., MHA, CMPE (Kentucky Chapter) Mr. Holder has been appointed assistant executive director-surgery, clinic administration, Scott and White Clinic, Temple, Texas. Formerly, he was administrator, University of Louisville...

Wadsworth-Rittman Hospital.(appointments)(Brief Article)
July 1, 2005... Cindy Hoyt, MBA (Northeast Ohio Chapter) Ms. Hoyt has joined Wadsworth-Bittman Hospital, Wadsworth, Ohio, as patient accounting director. She had been patient accounting manager, Union Hospital, Dover, Ohio.

Millennium Management VI.(appointments)(Brief Article)
July 1, 2005... Sherry Mix (Louisiana Chapter) Ms. Mix has been appointed CFO, Millennium Management VI, Baton Rouge, La. Previously, she was assistant administrator, HealthSouth Behabilitation Hospital, Baton Rouge.

Cascade Health Network.(appointments)(Brief Article)
July 1, 2005... John H. Thomas (Colorado Chapter) Mr. Thomas has joined Cascade Health Network, Benton, Wash., as executive director. He had been president, Qualuum Corporation, Denver.

St. James Hospital and Health Centers.(appointments)(Brief Article)
July 1, 2005... Tony Banda, CPA (First Illinois Chapter) Mr.Banda has joined St. James Hospital and Health Centers, Olympia Fields, Ill., as vice president, finance. Previously, he was controller, Marianjoy, Inc., Wheaton, Ill.

Robert Barber, DHA, FHFMA: the reasons I'm hooked on HFMA.(Carolinas HealthCare System., Healthcare Financial Management Association.)
July 1, 2005... HFMA serves many purposes--and its benefits extend not only to individuals, but to communities, and ultimately to the U.S. healthcare system overall. For the healthcare community at large, HFMA provides the knowledge, resources, and connections...

Hospital transfers account for increasing percentage of Medicare costs.(DATA TRENDS)
July 1, 2005... The rate of increase in Medicare admissions to acute care hospitals from 2000 through 2003 was far outpaced by increases in average charges and costs for those admissions, according to data in CMS's Medicare Provider Analysis and Review file. A...

Gaining community support: the ongoing attack on not-for-profit hospitals related to their billing and collection practices is baffling to most of us in the field.(FROM THE PRESIDENT)
July 1, 2005... Wall Street expects us to produce a reasonable return, while Main Street appears to want us to operate at breakeven or, worse, a loss. And misinformation about what should be expected from a tax-exempt hospital is perpetuated by those whose...

HFMA's biennial career and compensation guide: featuring results of HFP1A's 2005 Compensation Survey.(chief financial officer)
July 1, 2005... The 2005 HFMA Compensation Survey leaves no doubt that CFOs in health care, along with midlevel financial managers, are doing very well, thank you, with compensation reflecting rising levels of education, experience, and expertise. ...