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Risk sharing: health care's latest challenge.

With pressure building to reduce healthcare costs, relations between providers and insurers in the years ahead increasingly will focus on risk sharing and utilization controls. Fixed price agreements and managed care plans are two approaches expected to come into wider use. To cope with coming utilization reviews and efforts to manage outpatient care, hospitals will need information systems allowing them to evaluate patient mixes and service intensities.

Financial Management↗

Insurance.

Explore the source record for details and available documents.

Hospital Administration↗

Options for purchasing provider excess insurance.

Provider organizations accepting capitated payments often purchase provider excess insurance to protect themselves from catastrophic loss. These organizations have the option of purchasing such insurance coverage from the HMOs with which they contract or from commercial insurance companies. To determine which purchase strategy will be cost-effective, provider organizations must carefully analyze their risk, determine how much coverage they need, and exercise due diligence.

Capitation Fee↗

Insured maximum mortgage amount for hospitals--Office of the Assistant Secretary for Housing. HUD. Proposed rule.

The Department proposes to modify its regulations governing the maximum mortgage principal amount that it will insure for a new or rehabilitated hospital. Under its existing regulations, the Department can insure a mortgage in any amount that does not exceed 90 percent of HUD's estimate of the replacement cost of the hospital (including major movable equipment). Under the proposal, however, the loan to replacement cost ratio would vary for insured mortgages on projects where the replacement cost exceeds 100 million dollars. In essence, the mortgagor's equity requirements would be required to increase as the principal obligation sought to be insured increased. This proposal is intended to (a) mitigate the possibility of large-scale defaults in future years; (b) ensure the long-term adequacy of the Department's insurance fund, and (c) avoid undue concentration of insurance commitments in a relatively small number of projects.

Financial Management↗

Day hospitalization as a cost-effective alternative to inpatient care: a pilot study.

Two private day hospitals and an insurance company offering group health coverage to federal employees undertook a pilot study to determine if providing insurance coverage for day hospitalization on the same basis as for inpatient treatment was a feasible means of controlling the cost of psychiatric care. The study included 31 patients who otherwise would have been hospitalized; most had histories of severe psychiatric disorders and extensive treatment. Using the measure that the day hospital patients would have been in inpatient treatment for the same number of days, the authors estimate that the use of day treatment saved the insurer more than $255,000. They recommend that day hospitalization be reimbursed on the same basis as inpatient care if a day hospital can meet stringent criteria ensuring that it provides active, appropriate treatment, and they present a list of such criteria.

Adolescent↗

Straight talk: new approaches in healthcare. Are you in denial over your denials? Enhance your revenues with denial management.

Most health systems lose between 3% and 5% of net revenues as a result of payment denials from insurance companies. But it doesn't have to be that way. In the eighth installment of Straight Talk, we talk about the steps necessary to recover lost revenue through a denial-management program, which involves an investment in information technology and a commitment to business-process change. Denial management isn't just the responsibility of the employees in patient financial services--it's everyone's responsibility at the hospital. Modern Healthcare and PricewaterhouseCoopers present Straight Talk. The session on denial management was held at Modern Healthcare's Chicago headquarters on November 6, 2002. Charles S. Lauer, Publisher of Modern Healthcare, was the moderator.

Financial Management, Hospital↗