For hospitals, health reform starts today
..for American hospitals, it means something quite different:
October 1 is arguably the day that the health reform law changed the way they get paid for providing health care.
There are two big parts of the health reform law going into effect today. One penalizes hospitals if patients are re-admitted to the hospital within one month of a visit for a condition that should have been dealt with on the first trip. The other seeks to redistribute higher Medicare payments to the hospitals that are delivering better care.
Both are part of an effort to fundamentally transform the health-care system in the United States by
moving it from a system that pays for value rather than volume. If efforts like these succeed, hospitals will become more concerned with delivering higher quality health care. If they don’t, health providers will continue to earn a living the way they have for decades: By earning a fee for every service they deliver.
....The independent Medicare Payment Advisory Commission estimates that
15.3 percent of hospital admissions result in a re-admission. In 2010 alone, this happened 1.9 million times at an estimated cost of $17.5 billion.
Until now, there weren’t much in the way of penalties for a patient landing back in the hospital. There was actually a financial incentive for readmitting a patient, as that would mean delivering more health care that they could bill for.
....In Northern Virginia, the Inova health system has spent $2.4 million to hire eight health coaches and four case managers to coordinate and keep track of patients after discharge, said Vera Dvorak, vice president for transitional care. The company also opened two special clinics where doctors see Inova patients who can’t get appointments with their regular providers within a week after discharge. Inova’s five hospitals will get paid about $250,000 less from Medicare this coming year because of the penalties, officials said.
Even hospitals that were not penalized have taken steps.
Virginia Hospital Center opened a pharmacy on its campus and launched its own home health service.
The penalty, said Robin Norman, chief financial officer, “is enough to have every hospital’s attention.”
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