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On the role of budgetary policy during demographic changes.

"The paper investigates the relationship between old age income maintenance and budgetary policy when a growing proportion of the population is retired. Special attention is paid to the different kinds of adjustment required under pay-as-you-go (PAYG) and fully-funded (FF) pension schemes. The paper shows that FF schemes reach spontaneously a new equilibrium while PAYG systems need policy action. With reference to PAYG systems, the paper shows that the tax increase called for by most governments is appropriate in the short-run, when the dependency ratio plays a dominant role. In the long-run, however, the increase in the tax rate is smaller, as the effects of the changes in the dependency ratio is offset by the lower need of public savings required for financing capital accumulation." The geographical focus is on developed countries.

Demography↗

U.S. hospital bond ratings in the managed care era.

This study examines whether managed care organizations (MCOs) have made it more difficult for U.S. hospitals to finance capital improvements. Specifically, the study analyzes the link between MCO penetration and the ratings assigned to newly issued tax-exempt hospital bonds. Because of greater financial pressures, rating agencies may assign lower ratings to those hospitals most dependent on managed care revenues. Lower ratings in turn will require hospitals to offer higher yields to investors, thereby increasing the cost of capital improvements.

Economics, Hospital↗

Business office innovations improve hospital cash flow.

The business office accounts for a major portion of hospitals' administrative and financial expenses. And, in the current shaky economic climate, hospitals faced with slowdowns and cutbacks in payments from a variety of sources are scrambling to come up with innovative ways to improve cash flow. "The hospital that has good cash flow will be the one able to survive," says George Arges, a senior policy analyst at the American Hospital Association's Division of Policy and Capital Finance in Chicago.

Accounts Payable and Receivable↗

Risk contracting.

Explore the source record for details and available documents.

Accounting↗

Recent developments in federal reimbursement for home health care.

Important recent changes in federal reimbursement for home health-care (HHC) services are discussed, and practical suggestions for dealing with these changes are offered. Regulatory changes affecting Medicare are generally directed at controlling HHC expenditures through more restrictive coverage criteria and lower payment rates. Both HHC agencies and HHC suppliers have been affected by recent regulatory developments, many of which have emanated from the program initiative work group (PIW) cost-control program implemented by HCFA. Regulatory changes in Medicaid have emphasized the substitution of home care for institutional care, particularly skilled-nursing-facility care. Private payments for HHC will likely be tied to capitation programs in which employers will contract directly with health-care organizations (such as health-maintenance organizations) to provide comprehensive services to employees and dependents. Until capitation financing becomes predominant, providers of HHC will be forced to contend with myriad carriers and insurance companies, each of which has its own coverage criteria and its own method of interpreting those criteria. Provider success will depend upon obtaining timely and favorable coverage determinations for prospective patients, establishing strong referral ties with physicians and discharge planners, being selective in the scope of services offered and the types of patients accepted, and keeping abreast of the regulatory changes that affect coverage and payment for HHC products and services.

Costs and Cost Analysis↗

Reflections on change in medical practice. The current trend to large-scale medical organizations.

The trend in the provision of medical care to large-scale organizations is clear. While this has been most conspicuous in hospitals, nursing homes, and renal dialysis treatment centers, it is gathering momentum in the practice of medicine itself. The competitive pressures for cost containment, the ability of large medical organizations to contract efficiently with third parties, the ample supply of newly trained physicians seeking immediate practice, and new capital financing opportunities are some of the many reasons for this rapid aggregation. This will in time structurally change medical practice and the way in which it is perceived by patients and the public.

Cost Control↗

The evolution of physician-directed managed care.

The health care industry is evolving. In the near term, POs will become the state of the art in physician-directed managed care. Eventually, POs will merge into fully integrated group practices. From there, regional POs and group practices will develop their own insurance products. But because these organizations will be dominated by physicians who wish to practice medicine, rather than sell insurance, money will be made by appropriately managing risk and providing high-quality care. In time, physicians will take control and "manage" managed care, as they are the only ones--not administrators, executives, or other business people--who are in a position to fundamentally revise the way medicine is practiced.

Capital Financing↗

The emergence of providers as health insurers.

The traditional delineations between providers of health care and insurers are becoming blurred. The author describes the trend toward creation of provider/insurers, the current miasma of regulatory and legislative activities surrounding the issue, and the market and operational forces also at play.

Attitude of Health Personnel↗

How to choose the right capitalization option.

Physician group practices and networks must have ready access to capital to finance their working capital needs, capital equipment acquisitions, and real estate purchases, as well as to fund the acquisition of additional practices. At least three options for capitalization are available to group practices and networks: debt financing, equity financing, or a combination of the two. The best option for physician group practices and networks depends on the costs of capital and the impact the strategy will have on decision making and governance.

Capital Financing↗