News Briefs
News Briefs
Studies forecast bleak BBA impact for hospitals
Data released in September by HCIA Inc. in Baltimore and Ernst & Young LLP in New York City indicate that the Balanced Budget Act of 1997 (BBA) could leave a majority of the nation’s hospitals in the red by 2002, if Congress and the Clinton administration don’t take further action.
"The industry may likely see reductions in hospital staffing and services, reduced levels of patient care, and less investment and expansion in local communities," says HCIA senior vice president John Morrow.
"The bottom line is that these cuts may hurt communities nationwide, urban and rural alike. All health care constituents need to understand that these cuts may have a far-reaching and long-lasting impact on the quality of care delivered to the nation’s seniors," he adds.
Analysis of the September 1999 numbers reported by hospitals indicate that, nationwide, hospital total profit margins will fall from their current median level of just over 4% to below zero by 2002. In March, HCIA/Ernst & Young data showed a possible 3.6% margin by 2002, but in June, HCIA data showed 2002 profits dropping to -0.28%.
The September 1999 figures from HCIA indicate that the median hospital’s total profit margin could fall to -0.41% by 2002. The changes are based upon actual results reported by U.S. hospitals subsequent to the implementation of year one BBA cuts.
These findings are substantially worse than original government reports. Earlier this year, MedPAC, the government agency that advises Congress on Medicare inpatient reimbursement rate changes, predicted a financially healthy future for hospital profits.
But those predictions were based on profit margins for Medicare Part A (inpatient) services only. The HCIA/Ernst & Young analysis considers all hospital services for all patients. HCIA says it will continue to monitor and assess the effects of the BBA on hospitals.
JCAHO announces restructuring plans
Sept. 30, the Joint Commission on Accreditation of Healthcare Organizations in Oakbrook Terrace, IL, announced an organizational restructuring and staffing realignment to focus its attention and resources on enhancing the quality, adaptability, and affordability of its accreditation services. The restructuring delineates separate functional units for evaluation and accreditation, consultation and education, and research. The realignment results in the elimination of a number of open positions and a modest reduction in the Joint Commission work force. "This realignment creates a synergy throughout the organization that will optimize the position of the Joint Commission for the new millennium," says Dennis S. O’Leary, MD, president of the Joint Commission.
Don Nielsen, MD, senior vice president for quality leadership for the American Hospital Association, told AHA News that hospital executives "should recognize JCAHO is experiencing the same restraints they are. Just as hospitals are trying to improve efficiency and effectiveness, so too is JCAHO."
NIH senior policy analyst elected AHIMA president
Barbara Fuller, JD, RRA, of Montgomery Village, MD, was elected president-elect of the American Health Information Management Association (AHIMA), a Chicago-based national association of nearly 40,000 medical record and health information management (HIM) professionals founded in 1928.
In addition to her involvement with AHIMA, Fuller is a senior policy analyst at the National Human Genome Research Institute at the National Institutes of Health in Bethesda, MD.
Based on her legal training and HIM experience, Fuller has opted to make one of the focuses of her presidency "to assist in providing state-of-the-art resources and opportunities for AHIMA members to achieve the highest possible professional standards." Fuller will take the office of president-elect on Jan. 1, 2000, and president on Jan. 1, 2001.
Access to meds during Y2K should be normal
Consumers will have access to a substantial supply of medications during the Y2K date change, and there should be no need for consumers to overbuy medications in preparation for Y2K, according to the Pharmaceutical Alliance for Y2K Readiness in Washington, DC.
The alliance is a coalition of drug manufacturers, wholesale distributors, pharmacies, and health care organizations working closely with government leaders to ensure consumers a continued and substantial supply of pharmaceuticals through Jan. 1, 2000. It recommends that consumers refill prescription medications as they normally would — when they have a five- to seven-day supply remaining.
Some of these federal organizations include the President’s Council on Year 2000 Conversion, the Senate Special Committee on the Year 2000 Tech-nology Problem, the Food and Drug Administra-tion, the Department of Health and Human Services, the Federal Trade Commission and the Department of Veterans Affairs. "Substantial progress has been made, and government and industry are confident that the pharmaceutical supply system should continue to function normally through January 1, 2000," says John A. Koskinen, chairman of the president’s Y2K Council.
For more information about the alliance, visit its Web site at http://www.y2kmedication.com or call (202) 969-0621.
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