Embracing Health Care Reform

The LarsonAllen health care group recently spent several days together focusing on the issues, effects, and implications of health care reform. Frankly, we want to help our clients think through the strategies that will position them for success in the new payment environment. We discussed the reimbursement changes, technology requirements, challenges in accessing capital, and the new forms of relationships that will be required.

At the conclusion of the day, I did my best to tie it all together. Whether you are happy with the recent legislation or not, payment reform is here to stay. Our costs are too high, and quality is too low relative to the costs. The United States spends more than any other country on health care, but has not historically received a return on its investment when compared to other countries. As a country we need to change the cost curve so that expenditures increase at a much slower pace.

We are living in an evolving environment with increasing cost pressure, regulation, and scrutiny. Payment methodologies and mechanisms, for all payers, will change with an increased focus on value and accountability. Therefore, strategy will need to change to include development of new relationships as well as clinical processes and protocols. Information systems will need to be expanded.

In the coming days, we will be posting some of the videos of our health care dialogue. In the meantime, we have already published information to help you start to understand the impact of reform on your organization:

• Nicole Fallon breaks down the insurance requirements of reform
• Rob Schile discusses the six major themes of reform 
• We discuss the tax provisions of the bill
• And you can learn how nonprofit hospitals can still influence the IRS regulations related to reform