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MedeAnalytics' Ken Perez Describes Multi-Year "Perfect Storm" for Hospital Finances at 2012 Becker's Hospital Review Annual Meeting
May 18, 2012 (03:05 PM EDT)
Vigilance, scenario planning, focus on improving care delivery will be key to survival, he tells audience
CHICAGO, May 18, 2012 /PRNewswire/ -- Alluding to events that faced the Titanic, Ken Perez, MedeAnalytics' senior vice president of marketing and director of healthcare policy, today told an audience of healthcare executives that hospital finances are facing a multi-year "perfect storm" in a sea of uncharted icebergs, and that the key to survival will be vigilance, scenario planning, and a continued focus on improvement of care delivery. He delivered his remarks at the 2012 Becker's Hospital Review Annual Meeting at the Hotel Allegro in Chicago, Ill. MedeAnalytics is a leading provider of healthcare performance management solutions.
In his presentation, "Key Developments in Medicare Reimbursement and the Implications for the Delivery of Care," Perez summarized the societal, legislative and market context of current healthcare economics. He provided a brief review of the history of Medicare and its significance to hospitals, described planned and potential cuts to Medicare reimbursement, and concluded with a number of recommendations for hospitals.
Perez told the audience that today's unprecedented hospital financial challenges are the result of the combination of multiple factors: Affordable Care Act (ACA)-mandated reductions, likely cuts to Medicare as a result of the Budget Control Act of 2011 (the "debt deal"), sustainable growth rate (SGR) assumptions and the potential ramifications of a permanent "doc fix," the rise of risk-based reimbursement, and pressure from commercial payers. "These challenges will constitute a significant threat to hospital finances for many years," said Perez. "Because of the complexity and escalating impact of reductions to Medicare reimbursement in the future, it is important to understand, monitor and take steps to mitigate the adverse effects of the reductions."
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