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Docs Less Likely to Participate in ACOs in Disadvantaged Communities

A new study has found that physicians who practice in areas with higher proportions of low-income, uninsured, less-educated, disabled, and African-American residents are less likely than others to participate in accountable care organizations.
If ACOs ultimately are found to improve health care quality while better managing costs, their benefits might be limited in such communities, thereby exacerbating health care disparities.  If this trend holds true in Pennsylvania, it could be harmful to many of the communities served by the state’s safety-net hospitals.
health affairsTo learn more, go here to see the Health Affairs report “Physicians’ Participation In ACOs Is Lower In Places With Vulnerable Populations Than In More Affluent Communities.”

2016-08-23T10:41:08+00:00August 23rd, 2016|Pennsylvania safety-net hospitals, Uncategorized|Comments Off on Docs Less Likely to Participate in ACOs in Disadvantaged Communities

Feds Announce Process for Phasing Out Medicaid Pass-Through Payments

A number of states supplement the Medicaid revenue of high-volume Medicaid hospitals – and draw down additional federal Medicaid matching funds – by making special pass-through payments through Medicaid managed care organizations.   Such payments are often used to distribute the proceeds from state hospital taxes.
The Centers for Medicare & Medicaid Services has looked upon such payments with growing disapproval in recent years and has now advised state Medicaid programs on how it plans to phase out the practice entirely.
cmsIn a bulletin to state Medicaid directors titled “The Use of New or Increased Pass-Through Payments in Medicaid Managed Care Delivery Systems,” CMS has announced its intention to ban the pass-through payments over a period of years, with limited exceptions that meet specific new criteria.
In announcing the policy, CMS acknowledges the challenges inherent in ending the use of such payments and indicates its intention to address this issue, and the phase-out process, in future regulations
Such pass-through payments are an important of Pennsylvania’s Medicaid program and the state’s private safety-net hospitals benefit considerably from them.
Go here to see the CMS bulletin on a subject of interest to many high-volume Medicaid hospitals.
 

2016-08-09T06:00:39+00:00August 9th, 2016|Pennsylvania Medicaid, Pennsylvania Medicaid policy, Pennsylvania safety-net hospitals|Comments Off on Feds Announce Process for Phasing Out Medicaid Pass-Through Payments

Report: Uncompensated Care Payments Insufficiently Aligned With Uncompensated Costs

Some of the payments Medicare makes to hospitals to help them with their uncompensated care costs are not well-aligned with actual hospital uncompensated care costs, the U.S. Government Accountability Office has concluded.
gaoIn a new report based on FY 2013 and FY 2014 data, the GAO found that

Medicare UC [uncompensated care] payments are not well aligned with hospital uncompensated care costs for two reasons. First, payments are largely based on hospitals’ Medicaid workload rather than actual hospital uncompensated care costs…Second, CMS [the Centers for Medicare & Medicaid Services] does not account for hospitals’ Medicaid payments that offset uncompensated care costs when making Medicare UC payments.

Medicare uncompensated payments to hospitals also are sometimes as Medicare disproportionate share (Medicare DSH) uncompensated care payments.
To address this problem, the GAO recommends that CMS

  • improve alignment of Medicare UC payments with hospital uncompensated care costs
  • account for Medicaid payments made when making Medicare UC payments to individual hospitals

The report notes that CMC agreed with these recommendations.
Pennsylvania’s safety-net hospitals typically receive Medicare uncompensated care payments.
To learn more about what the GAO found and what its implications might be for hospitals, go here for a link to the new GAO report Hospital Uncompensated Care: Federal Action Needed to Better Align Payments with Costs and to a summary of that report.

2016-08-05T06:00:54+00:00August 5th, 2016|Medicare, Pennsylvania safety-net hospitals|Comments Off on Report: Uncompensated Care Payments Insufficiently Aligned With Uncompensated Costs

Report to CMS on Risk Adjustment of Medicare Payments

The National Academies of Sciences, Engineering, and Medicine has issued its latest report to the Centers for Medicare & Medicaid Services on how to adjust Medicare payments to hospitals based on the socio-economic risk factors hospitals’ patients pose.
At the request of CMS, the Academies created an expert committee to

…identify criteria for selecting social risk factors, specific social risk fascinators Medicare could use, and methods of accounting for those factors in Medicare quality measurement and payment applications.

The committee created for this purpose viewed its goal to be 

…to guide the selection of social risk factors that could be accounted for in VBP [value-based purchasing] so that providers or health plans are rewarded for delivering quality care and value, independent of whether they serve patients with relatively low or high levels of social risk factors.

academies Now, the committee has issued its third report to CMS, and in that report it offers three overarching considerations and five criteria to determine “whether a social risk factor should be accounted for in performance indicators used in Medicare VBP programs.” They are:

  1. The social risk factor is related to the outcome.
  • The social risk factor has a conceptual relationship with the outcome of interest.
  • The social risk factor has an empirical association with the outcome of interest.
  1. The social risk factor precedes care quality and is not a consequence of the quality of care.
  • The social risk factor is present at the start of care.
  • The social risk factor is not modifiable through provider actions.
  1. The social risk factor is not something the provider can manipulate.
  • The social risk factor is resistant to manipulation or gaming.

Medicare’s readmissions reduction program and other value-based purchasing programs create special challenges for providers like Pennsylvania’s safety-net hospitals that serve especially large numbers of low-income patients.
To learn more about what the committee proposed and why it proposed it, see this news release describing its work, this summary of its work, and the full report, titled Accounting for Social Risk Factors in Medicare Payment Criteria, Factors, and Methods.
 

2016-07-20T06:00:58+00:00July 20th, 2016|Medicare, Pennsylvania safety-net hospitals, Uncategorized|Comments Off on Report to CMS on Risk Adjustment of Medicare Payments

New Approach to Super-Utilizers: Free Housing

A Chicago hospital is experimenting with a new way of serving its most frequent uninsured ER visitors: arranging for free housing.
The University of Illinois Hospital has found that many of its most frequent ER patients, while suffering from numerous and chronic medical problems, turn to its ER for overnight accommodations during harsh weather. Under a pilot program, the hospital is spending $1000 a month to put its homeless super-utilizers into free housing.
iStock_000000522737XSmallWith overnight hospital stays for uninsured patients costing $3000, the program offers the potential for significant savings for the hospital. In addition to free housing, participating patients are assigned a case manager to help coordinate their health care needs.
Such patients can be found outside of places like Chicago that have occasionally harsh weather, and so-called super-utilizers frequent hospitals because of medical problems, not just harsh weather. In fact, about half of overall Medicaid spending is for just five percent of the program’s 55 million participants. Pennsylvania’s safety-net hospitals serve significant numbers of such patients.
Learn more about how the University of Illinois Hospital is attempting to meet the needs of its uninsured super-utilizers in this report from National Public Radio.

2016-07-06T06:00:42+00:00July 6th, 2016|Pennsylvania safety-net hospitals|Comments Off on New Approach to Super-Utilizers: Free Housing

Medicaid Expansion Producing Benefits for Safety-Net Providers

Seeing fewer uninsured patients, safety-net hospitals in states that have expanded their Medicaid programs as provided for under the Affordable Care Act are finding themselves able to use money previously caring for the uninsured for things like more and better primary and behavioral health services, more staff, new or improved health centers and clinics, and better equipment.
HospitalThis conclusion is drawn in a new study from the Georgetown University Health Policy Institute based on interviews with leaders of eleven hospital systems and federally qualified health centers (FQHCs) in seven states: four that expanded their Medicaid programs and three that did not.
While Pennsylvania was not one of the states included in the study, it is one of more than 30 states that has expanded its Medicaid program.
To learn more about what the study revealed, go here to read Beyond the Reduction in Uncompensated Care: Medicaid Expansion is Having a Positive Impact on Safety Hospitals and Clinics.

2016-06-21T06:00:03+00:00June 21st, 2016|Affordable Care Act, Pennsylvania Medicaid policy, Pennsylvania safety-net hospitals|Comments Off on Medicaid Expansion Producing Benefits for Safety-Net Providers

Fewer People Skipping Care for Financial Reasons

Fewer Americans are choosing not to pursue medical care for financial reasons, according to new information from the Centers for Disease Control and Prevention.
According to the CDC’s National Health Interview Survey, 4.5 percent of the people surveyed reported not getting medical attention they needed for financial reasons in 2015, down from 6.9 percent in 2009 and 2010.
This suggests that the Affordable Care Act’s changes in providing access to health insurance are making a different in the ability of people to get the care they believe they need.
Happy medical team of doctors togetherPrior to the reform law’s passage, the proportion of people reporting that they chose not to seek care for financial reasons had been rising steadily since 1998.
This is good news for Pennsylvania safety-net hospitals, which often must deal with the medical and financial implications of serving especially large numbers of patients who, for financial reasons, have had limited and sporadic contact with the health care system over the years.
To learn more about the survey’s findings see this CQ HealthBeat report presented by the Commonwealth Fund and go here to see the CDC report Early Release of Selected Estimates Based on Data From the 2015 National Health Interview Survey.

2016-06-06T06:00:03+00:00June 6th, 2016|Affordable Care Act, Pennsylvania safety-net hospitals|Comments Off on Fewer People Skipping Care for Financial Reasons

Homeless Health Care Costs Driven More by Hospital Stays Than ER Visits

Extended hospital stays and not frequent visits to hospital emergency rooms constitute the greatest cost in caring for homeless Medicaid patients, a new analysis has found.
A review of 1100 homeless people served by the Boston Health Care for the Homeless Program found that while repeated visits to the ER do constitute a problem for caregivers, the cost of those visits is dwarfed by costs associated with the same patients spending long periods of time in the hospital.
According to the review, 30 percent of the group’s Medicaid costs were for hospital stays while only four percent were for ER services. The homeless frequently spend more time in the hospital because they are in such poor overall health.
In recent years, providers have focused much of their attention on frequent ER visitors – so-called “frequent flyers” or “super-utilizers” – but the experience of the Boston program suggests that conditions that lead to long periods of hospitalization among the homeless may need more attention as well.
iStock_000015640638XSmallBecause of where they are located, Pennsylvania safety-net hospitals serve far more homeless patients than the typical hospital.
For a closer look at the Boston program and what its leaders learned, see this Boston Herald article.

2016-06-01T06:00:44+00:00June 1st, 2016|Pennsylvania safety-net hospitals, Uncategorized|Comments Off on Homeless Health Care Costs Driven More by Hospital Stays Than ER Visits

New Report Highlights Benefits of 340B Program

A new report describes how the federal government’s 340B Drug Pricing Program works, how it serves low-income participants, what might happen if the program were curtailed, and why the program remains as important as ever despite the declining number of uninsured Americans.
The program, created in the early 1990s, requires pharmaceutical companies to provide outpatient drugs to eligible health care providers at significantly reduced prices. Providers qualify based on the number of low-income and uninsured patients they serve and they must be non-profit organizations.
Most Pennsylvania safety-net hospitals participate in the program.
Prescription Medication Spilling From an Open Medicine BottleAmid a considerable increase in the number of eligible providers, drug companies have been calling on the federal government to scale back the program.
Learn more about the 340B program in the new report “340B Program Helps Hospitals Provide Services to Vulnerable Patients: Results From a Survey of 340B Health Members,” released by the advocacy organization 340B Health. Find the report here.

2016-05-24T06:00:03+00:00May 24th, 2016|Pennsylvania safety-net hospitals|Comments Off on New Report Highlights Benefits of 340B Program

Bill Proposes Risk-Adjusting Medicare Readmissions Program

ways and meansA new bill introduced in the House Ways and Means Committee would apply risk adjustment for socio-economic factors to Medicare’s hospital readmissions reduction program.
According to a committee summary of the bill, The Helping Hospitals Improve Patient Care Act of 2016 includes a provision that would direct the Secretary of Health and Human Services to

… implement a transitional risk adjustment methodology to serve as a proxy of socio-economic status for the Hospital Readmissions Reduction Program. In addition to the transitional adjustment, the section clarifies that the Secretary is able to permanently use a more refined methodology following the analysis required by the Improving Medicare Post-Acute Care Transformation Act of 2014. The section also requires a study by the Medicare Payment Advisory Commission (MedPAC), and allows for an analysis of “V-codes” and an exploration of potential exclusions.

The bill would be beneficial for Pennsylvania’s private safety-net hospitals because they serve more low-income patients who are more challenging to treat than typical hospital patients and are more likely to require post-discharge readmission to address continuing medical and social issues.
For a closer look at the bill’s socio-economic risk adjustment provision and other proposals, go here to see the committee’s summary of H.R. 5273, The Helping Hospitals Improve Patient Care Act of 2016, and go here to see the bill itself.

2016-05-23T06:00:17+00:00May 23rd, 2016|Medicare, Pennsylvania safety-net hospitals|Comments Off on Bill Proposes Risk-Adjusting Medicare Readmissions Program
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