Catholic chain inks record pact for hospital computer system.
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While hospitals, medical group practices and integrated health care delivery systems can expect tight profit margins in 1999, Donald E. L. Johnson writes that both Medicare and private sector payments may stabilize over the next 12 months to bring improved bottom lines.
After a slew of retrenchments, split-ups and sliding profits last month, healthcare companies are learning that they probably need to change their game plans and get back to basics. Experts say the same cycle has occurred in other industries and is expected in healthcare.
Many complain that hospital-group practice affiliations are a failed model and should be abandoned. The author argues for a less rash approach, saying the goal should be to understand the problems precisely, then fix them. Benchmarking is a good place to start. The article outlines the basic definition and ground rules of bench-marking and explains what resources help accomplish the task.
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UNLABELLED: San Jose Medical Group, San Jose, Calif. PROBLEM: A manual referral and authorization process resulting in significant monetary losses. SOLUTION: Contracting with an application service provider that could provide real-time data on a continual basis. RESULTS: Timely information on eligibility, referrals and authorizations before the patient leaves the office--patients going to the right doctors for the right services--and an in-depth understanding of associated costs. KEYS TO SUCCESS: Taking a chance by going with an ASP--a company with little history.
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