HEALTHCARE NEWS FLASH 16th September 2013
Table of Contents Sales & Marketing ................................................................................................................. 3 Finance ................................................................................................................................. 8 Technology .......................................................................................................................... 12 Strategy .............................................................................................................................. 18
2|Sutherland Insights Healthcare News Flash.16092013
Sales & Marketing Ob Hospitalist Group, Beazley create unique partnership 12 September, 2013 | News Medical http://www.news-medical.net/news/20130912/Ob-Hospitalist-Group-Beazley-create-uniquepartnership.aspx Ob Hospitalist Group (OBHG) and Beazley, a leading insurer of hospital professional liability risks in the Lloyd's Insurance market, have created a unique partnership that is sure to bring forth many new and exciting opportunities, the very first of which is an up to 10% discount on insurance premiums Beazley is offering to OBHG hospital partners. Beazley at Lloyds insures many of the largest and most prestigious hospitals in the United States including three of the top five pediatric hospitals as listed by US News and World Report and 18% of Modern Healthcare's top 100 hospitals. Today the liability challenges faced by healthcare organizations are greater than ever. However, there is strong evidence to suggest that exposures can be mitigated by a top-down commitment to quality and patient safety. Beazley rewards hospitals that implement programs that minimize risk and increase patient safety, satisfaction and demonstrate a commitment to providing the very best medical care available. After much due diligence, Beazley has determined that an OBHG hospitalist program is a key component in elevating the standard and safety of the women's healthcare line and as such is offering this unprecedented discount towards hospital insurance premiums. OBHG provides our hospital partners with custom program policies and procedures aligned with their individual standards, coding and compliance materials and monitor key metrics to ensure accurate and compliant coding. The work we perform makes a positive impact in the lives of our patients, their newborns and families. It also makes a difference in each hospital by ensuring they are fully equipped with a strong Board Certified, OB/GYN physician team to successfully care for each patient presenting, regardless of time, day or complication. We are proud this contribution has been recognized and rewarded by a company that has served and protected the best healthcare providers across the globe since 2003.
3|Sutherland Insights Healthcare News Flash.16092013
D.C. United to help publicize District’s Obamacare exchange 11 September, 2013 | Politico http://www.politico.com/story/2013/09/dc-united-to-help-publicize-districts-obamacareexchange-96684.html?hp=l17 Obamacare is about to get a big assist from D.C.’s professional soccer team. The District’s health exchange is teaming up with D.C. United to spread the word about coverage options in the new insurance marketplace set to open in just three weeks. The District’s exchange, known as DC Health Link, disclosed the plans in a Wednesday night board meeting. A more formal announcement is still to come. That makes United the second professional sports franchise to join the Obamacare team, a week after Maryland’s health exchange announced plans to partner with the Super Bowl Champion Baltimore Ravens. But unlike the Ravens, who stressed their partnership with Maryland’s exchange was basically a business arrangement, the District’s exchange will have a visible association with United. DC Health Link plans to kick off the United partnership at an Oct. 4 home game – coincidentally, against President Barack Obama’s hometown team, the Chicago Fire. Partnership plans include an on-field presence, a public address announcement and – naturally – some tailgating at RFK Stadium. A spokesman for the soccer team didn’t immediately return a request for comment Wednesday night. States running their own Obamacare exchanges have looked to partner with professional sports teams as a way to reach younger fans and help shed the politics surrounding the divisive health care law. However, they’ve been largely unsuccessful so far. Earlier in the summer, Senate Minority Leader Mitch McConnell and No. 2 Senate Republican John Cornyn sent letters to six professional sports leagues, warning them to avoid any association with Obamacare. Not included on the senators’ letter: Major League Soccer.
C.S. Mott Children's Hospital kicks off Block Out Cancer campaign 11 September, 2013 | News Medical http://www.news-medical.net/news/20130911/CS-Mott-Childrens-Hospital-kicks-off-Block-OutCancer-campaign.aspx C.S. Mott Children's Hospital kicked off a new campaign today to "Block Out Cancer" with a month of promotions designed to increase awareness of the need for research into pediatric cancer.
4|Sutherland Insights Healthcare News Flash.16092013
Each year, more than 13,000 parents will learn that their child has cancer. Despite all that's been learned, one out of five children diagnosed with cancer do not survive. "Despite those alarming statistics, a small percentage of research funds granted by the National Institutes of Health are allocated to researching cancer that affects children," says Valerie P. Castle, chair of C.S. Mott Children's Hospital's Department of Pediatrics and Communicable Diseases and a pediatric oncologist. "It is the number one cause of death by disease in children. We need to do more to find cures and treatment. This campaign is about letting everyone know that they can be part of the effort to block out cancer." Getting involved can be as simple as sharing the Block Out Cancer graphic, which features the familiar baby block and the block M. Michigan residents are encouraged to share the graphic on Facebook and Twitter and post links to a new, touching video that features Mott patients and staff in their daily struggle against cancer. The effort is tied to the national Childhood Cancer Awareness Month efforts. "Just by spreading the word, you can be a hero. And every gift, no matter the size, helps us advance research and move closer to better treatments or even cures," Castle says. Donations can be made online at www.mottchildren.org/blockoutcancer and T-shirts featuring the logo can be purchased. The Mission Restaurant Group is also offering an "add to your check" option for donating to Mott. Each day during September, Mott's Web site will feature a new blog post highlighting important ways our faculty, staff, families, volunteers and donors are doing their part to Block Out Cancer. Research has made advances in improving cure rates for children's cancers, which have increased from less than 40% to nearly 70%. Future progress is highly dependent on new biological discoveries leading to the development of drugs specifically designed for pediatric cancers. Funding for those efforts is crucial to continuing progress, says Castle. "C.S. Mott Children's Hospital is home to the largest, cutting-edge pediatric research effort in the state of Michigan. We believe every child deserves a cure, and that's why we established the Center for Childhood Cancer to help us find different, better ways to cure childhood cancers," says Castle. "We hope this effort to "Block Out Cancer" raises awareness and helps everyone realize they have a role to play in the effort to fight these diseases."
5|Sutherland Insights Healthcare News Flash.16092013
Cleveland Clinic, Physicians Create National Orthopedic Physician Hospital Organization 10 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-physician-relationships/cleveland-clinicphysicians-create-national-orthopedic-physician-hospital-organization.html The Cleveland Clinic has partnered with The CORE Institute, an orthopedic group based in Phoenix, OrthoCarolina, an independent academic orthopedic practice based in Charlotte, N.C., and the Rothman Institute, a private orthopedic practice based in Philadelphia, to form the National Orthopaedic & Spine Alliance, an orthopedic physician hospital organization. The clinically integrated PHO with nearly 600 physicians has three main focuses: improving quality and consistency of care, reducing costs and operational inefficiencies and providing greater access to expertise, data and experience, according to the news release. "This is a monumental step in ensuring patients around the nation in need of orthopedic or spine care will be able to receive it and have peace of mind knowing there is a high-quality provider located nearby. The fact that these leading groups are working together to offer the highest quality, peer-reviewed service that employers and patients can have access to is really unprecedented," Joseph Iannotti, MD, PhD, chairman of the Cleveland Clinic Orthopaedic and Rheumatologic Institute and president of the PHO's board, said in the release. David Jacofsky, MD, chairman and CEO of The CORE Institute, added, "The CORE Institute believes that this PHO, and its founders, will help define the way in which top orthopedic groups are able to share data and improve quality in a more comprehensive, automated and integrated way and will redefine the way in which employers can access medical care for employees based on outcomes data." In addition to the three founding members, a letter of intent has been signed with OrthoIndy and OrthoCalifornia to enroll the providers in the PHO. The National Orthopaedic & Spine Alliance expects to see patients in January 2014.
Emory Healthcare Launches New Brand 06 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/strategic-planning/emory-healthcare-launches-newbrand.html Atlanta-based Emory Healthcare has launched a new brand, including a tagline, new logo and advertisements.
6|Sutherland Insights Healthcare News Flash.16092013
On Thursday, the system began a series of television, print and digital ads asking questions about the healthcare industry today and in the future. The ads' theme and Emory Healthcare's new tagline is "We're all in this together," which reflects its commitment to patients and families and the organization's common goal of quality care. Emory Healthcare also introduced a new logo, but it is only one part of the rebranding, according to President and CEO John Fox. "This is not just a new logo, signage or new ads. This is about who we are, how we are able to reduce costs while continuously [improving] quality and where we are going as an organization," he said in the release. The branding campaign aligns with the system's Emory's Care Transformation Model, an initiative based on continuous improvement that began in 2009.
4 Ohio Health Systems Create New Care Organization 04 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/4-ohio-healthsystems-create-new-care-organization.html Four Ohio health systems have joined forces to create Health Innovations Ohio, an independent organization that aims to create a fully integrated and aligned care model. The providers involved in the collaboration include Catholic Health Partners in Cincinnati, Columbusbased Mount Carmel Health System, Akron-based Summa Health System and University Hospitals in Cleveland. Health Innovations Ohio will begin its work by concentrating on Medicaid managed care, Medicare Advantage and population health management for HIO sponsoring systems’ employees and their dependents, according to a news release. The four health systems first came together to discuss forming HIO in mid-2012 after realizing no statewide provider networks like it existed in the U.S., according to the release. "Health Innovations Ohio will transform healthcare across the state by fostering value-based care and payment reform throughout our health systems which, taken together, reach more than 22 percent of Ohio's healthcare market," said HIO President and CEO Jim Reber in the release.
7|Sutherland Insights Healthcare News Flash.16092013
Finance HHS Distributes $67M to Expand, Improve Healthcare Delivery 13 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/news-analysis/hhs-distributes-67m-to-expand-improvehealthcare-delivery.html HHS has awarded $67 million to health centers across the nation to create 32 new healthcare delivery sites, which will increase access to preventive and primary care for more than 130,000 additional people. Roughly 1,200 health centers currently operate about 9,000 service delivery sites where more than 21 million patients in the states, the District of Columbia, the Pacific Basin, the U.S. Virgin Islands and Puerto Rico receive care. These health centers are crucial players in the healthcare reform law's implementation in both providing care and helping people find coverage through the new health insurance exchanges, according to an HHS news release. Federal officials will also distribute $48 million to nearly 1,200 healthcare centers to support quality improvement activities and ongoing operations, according to the release.
New UnitedHealthcare, Quality Health Services ACO to Cover 100,000 Patients 12 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/accountable-care-organizations/new-unitedhealthcarequality-health-services-aco-to-cover-100-000-patients.html Quality Health Solutions, a collaborative of health systems in Wisconsin and the Medical College of Wisconsin in Milwaukee, has announced an accountable care initiative with UnitedHealthcare. When the accountable care organization launches Jan. 1, 2014, it will be one of the first multiplesystem ACOs in the nation. In addition to the Medical College of Wisconsin, QHS' four southeastern Wisconsin members included in the ACO are Fond du Lac-based Agnesian Healthcare, Columbia St. Mary's and Froedtert Health, both in Milwaukee, and Wheaton Franciscan Healthcare in Glendale, Wis. All together, the ACO includes 3,000 physicians and 18 hospitals. "Our alliance of hospitals and physicians enables employers to offer a broad choice of providers, with the added benefit of saving money and improving quality of care," Peter Pruessing, CEO of QHS, said in a news release.
8|Sutherland Insights Healthcare News Flash.16092013
As part of the ACO, QHS providers will be rewarded for managing all aspects of patient care and for providing the right care in the right setting at the right time. Providers will be eligible for payment incentives based on improvements made in quality measures — like readmission rates and disease management — and for savings achieved. "At UnitedHealthcare, our goal is to maximize quality and value by aligning incentives across consumers, care providers and payers to achieve the triple aim of better health, better care and lower costs," Wendy Arnone, president and CEO of UnitedHealthcare of Wisconsin, said in the release. "The scale and geographic footprint of this partnership with Quality Health Solutions will accelerate the transformation of how we pay for healthcare and how healthcare is delivered." More than 100,000 Wisconsin residents covered by UnitedHealthcare's employer-sponsored health plans will be included in the ACO. The providers participating in the ACO account for $650 million of UnitedHealthcare's annual reimbursements in the state.
LifePoint, Fauquier Health Sign Definitive Deal for Joint Venture 04 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/lifepoint-fauquierhealth-sign-definitive-deal-for-joint-venture.html LifePoint Hospitals in Brentwood, Tenn., and Fauquier Health in Warrenton, Va., have signed a definitive agreement to form a joint venture. Under the deal, LifePoint would acquire 80 percent of Fauquier Health, which includes a 97-bed hospital and all other related assets. Fauquier would retain 20 percent ownership. Terms of the ownership stakes were not disclosed. Further, LifePoint would invest $52.8 million toward Fauquier Health over the next decade for capital investments, such as technology and equipment. The joint venture would also eliminate Fauquier's debt and create a $100 million charitable foundation. Fauquier President and CEO Rodger Baker said in a news release that the joint venture was a necessary measure "to provide quality care for the future." LifePoint and Fauquier executives signed the initial memorandum of understanding to form the joint venture in March. The deal, which would bring the number of Virginia LifePoint hospitals up to six, still must receive approval from state Attorney General Ken Cuccinelli.
9|Sutherland Insights Healthcare News Flash.16092013
MI hospitals say Medicaid expansion will benefit bottom lines 04 September, 2013 | Fierce Health Finance http://www.fiercehealthfinance.com/story/mi-hospitals-say-medicaid-expansion-will-benefitbottom-lines/2013-09-04 Expect to cut uncompensated care by double-digits Hospital executives in Michigan are optimistic that the state's recent decision to expand Medicaid will help them with their balance sheets, the Detroit Free Press reported. According to the Free Press, the state's larger hospital systems expect to recoup 10 to 15 percent of their traditional annual losses for uncompensated care. Henry Ford Health System, for instance, expects to save about $30 million. It spends about $230 million a year on uncompensated care. Laura Appel, a vice president with the Michigan Hospital Association, told the Free Press that the expansion of Medicaid is "a pretty big deal." State lawmakers passed a Medicaid bill late last month after months of debate. It is expected to expand coverage to an additional 470,000 residents, with coverage subject to higher premiums or a move to the insurance exchange after four years. However, not every hospital expects to report a gain. Spectrum Health System in Grand Rapids expects costs associated with treating Medicaid patients to rise by $21 million a year. That's primarily because Michigan's Medicaid program recoups only 76 cents for every $1 spent in the hospital setting. The gain in Medicaid revenue is also expected to offset an influx of uninsured patients seeking treatment in the hospital emergency rooms. Once enrolled in Medicaid, many patients are expected to seek less costly care through primary care physicians, reported the Advisor & Source, and ultimately shrink the volume of money-losing patients at the inpatient level.
Memorial Hospital Completes Merger With Care New England 03 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/memorial-hospitalcompletes-merger-with-care-new-england.html Providence, R.I.-based Care New England Health System has finalized its partnership with Memorial Hospital of Rhode Island in Pawtucket. Care New England and Memorial Hospital expect the partnership to improve the quality of clinical programs and services, increase operational efficiencies and maintain a strong academic and
10 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
research platform, along with other positive developments for the hospital and health system, according to a news release. The Rhode Island Department of Health approved the affiliation in June. Under the acquisition agreement, Care New England will not pay for debt financing but will refinance or discharge $11 million of Memorial's bond debt and cover its estimated $27 million to $36 million operational deficits through Sept. 30, 2016. Additionally, Care New England's board will grow by four seats and govern Memorial, which will nominate three at-large directors for Care New England approval. Memorial will freeze its defined benefit pension plan and isn't expected to receive capital investments from Care New England as part of the transaction, but it will continue all current service lines. Memorial will also keep its teaching affiliation with Brown University's medical school.
11 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
Technology Telemedicine bill would allow docs to practice across state lines 12 September, 2013 | Fierce Health IT http://www.fiercehealthit.com/story/telemedicine-bill-would-allow-docs-practice-across-statelines/2013-09-12 Medicare providers would be able to treat patients electronically across state lines without having to obtain multiple state medical licenses, according to new legislation proposed in the House this week. The TELEmedicine for MEDicare (TELE-MED) Act (H.R. 3077) "updates the law to account for rapid technological advances in medicine," according to Rep. Devin Nunes (R-Calif.), who sponsored the bill. Rep. Frank Pallone (D-N.J.) co-sponsored the legislation. "By reducing bureaucratic and legal barriers between Medicare patients and their doctors, it expands medical access and choice for America's seniors and the disabled," Nunes said in a statement. The bill was lauded by the Health IT Now Coalition, which called the legislation "essential" to promoting the benefits of telemedicine. "Currently, the benefits of telemedicine are limited by an antiquated system of licensure laws that hinders the practice of medicine across state lines," Health IT Now Coalition Executive Director Joel White said in a statement. "Limiting the number of doctors available in any one state to treat Medicare beneficiaries--who, due to disease, transportation or mobility issues, are often not able to travel long distances to receive the care they need--not only decreases access to care, but also increases costs and harms patient outcomes." Similar legislation was introduced in the House in January by Rep. Mike Thompson (D-Calif.). That bill--the Telehealth Promotion Act (H.R. 6719)--called for an increase in access to telemedicine within Medicare, Medicaid, the Children's Health Insurance Program, TRICARE, federal employee health plans and the U.S. Department of Veterans Affairs. Like the TELE-Med Act, it, too, required that providers only be licensed in their own state to be allowed to provide telehealth services nationwide. A bill introduced in summer 2012 that would have allowed VA providers to practice across state lines was not enacted, nor was a previous bill to expand federal reimbursement for telehealth services. In a blog post published at Lexology in June, RenĂŠ Y. Quashie, senior counsel in the healthcare and life sciences practice at law firm Epstein Becker Green, said that state licensure laws were among several issues that should worry healthcare leaders.
12 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
EHR use reduces ED visits, hospitalizations 10 September, 2013 | Fierce EMR http://www.fierceemr.com/story/ehr-use-reduces-ed-visits-hospitalizations-diabetics/2013-09-10 The use of electronic health records is associated with a decrease in emergency department visits and hospitalizations of diabetic patients, according to a study published Wednesday in the Journal of the American Medical Association. The researchers, from Kaiser Permanente's Research Division, analyzed the records of 169,711 diabetic patients in Kaiser's diabetes registry before and after implementation of HealthConnect-Kaiser's system-wide EHR system--from 2004 through 2009. They found that annual emergency department visits declined 5.5 percent and hospitalizations declined 5.2 percent, a "modest" but still statistically significant reduction in adverse health events. The research did not reveal any significant change in the number of office visits by diabetic patients. The study's authors suggested that changes in care delivery occasioned by the EHRs--such as workflow, electronic order entry and communication changes--caused the improvements. They also opined that the results are not limited to diabetes care. "[W]e hypothesize that EHR use may also act through many other pathways for other conditions to produce the overall reductions in ED visits and hospitalizations that we found," the researchers said in a statement. They recommended further study to quantify if EHR use was also associated with changes in healthcare costs. Other studies have shown that EHRs can improve the treatment and control of diabetes, one of the most common and difficult to treat chronic conditions. Kaiser has been at the forefront of EHR use and diabetes care research, and has identified other links between the two.
Quality Systems acquires Mirth Corp. 09 September, 2013 | Healthcare IT News http://www.healthcareitnews.com/news/quality-systems-acquires-mirth-corp Seeks to drive improvements in data exchange and analytics for ACOs In a bid to boost the interoperability of its NextGen electronic health record subsidiary, Quality Systems, Inc. has acquired Costa Mesa, Calif.-based Mirth Corporation. Officials say the acquisition will broaden its accountable care and population health capabilities.
13 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
"Mirth's reputation as one of the most adopted, open and globally trusted interconnectivity platforms is a natural fit for NextGen's established network of providers," said Steve Puckett, chief technology officer for Quality Systems, in a press statement. "By bringing our companies together we can quickly bring to market an unprecedented level of data exchange that will allow patients, providers and healthcare facilities to participate fully in a collaborative and connected care environment." With harmonization of data across different vendors' platforms key to accountable care delivery, Quality Systems officials say Mirth's technologies will help it offer a complete set of cross-enterprise products that are well-suited for new reimbursement models. Mirth's tools enable users to accurately integrate real-time, longitudinal health information from a wide variety of EHR systems at different hospitals, physicians and ancillary care providers and drive workflows, data exchange and analytics, officials say. As ACOs are tasked with acquiring data from health information exchanges to make informed decisions that improve care while reducing costs, the Mirth acquisition will position NextGen Healthcare to offer its clients information technology solutions with improved data exchange capabilities, allowing for better participation in local, state and federal eHealth initiatives, say Quality Systems officials. As Quality Systems integrates Mirth's capabilities into the NextGen Healthcare platform, it will also maintain the Mirth brand identity, office, team and products and will continue to market Mirth's commercial solutions and serve as the hub for the Mirth Connect open-source community, officials say. "At Mirth we've long understood the importance of delivering a scalable, flexible, and nimble suite of vendor-agnostic IT solutions," said Jon Teichrow, president of Mirth Corporation, in a statement. "We are excited about the opportunity to combine forces with NextGen Healthcare. Together, we can enable our clients to respond with agility to the demands of a rapidly evolving health care environment." "The acquisition of Mirth will further strengthen QSI's capabilities across the board, based on the new level of data integration and migration functionality it brings us," said Steven T. Plochocki, president and chief executive officer for Quality Systems. "We intend to expand our client base and position the company for continued growth, particularly within both the connectivity and EHR replacement markets, as we work to meet the needs of hospitals and physicians as well as their patients."
Brace for CPOE in MU Stage 2 06 September, 2013 | Healthcare IT News http://www.healthcareitnews.com/news/brace-cpoe-meaningful-use-stage-2?single-page=true There are some real ‘gotchas’ in the requirements
14 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
Meaningful use Stage 2 of the electronic health record incentive program is definitely tougher, with some particular elements – such as computerized physician order entry – that could catch some providers off guard, according to Laura Kreofsky, principal advisor at Impact Advisors, a consulting firm that helps providers comply with meaningful use. It’s important to understand what has changed between Stage 1 and Stage 2 and making sure you're prepared for the changes, Kreofsky says. "CPOE, one of the consternations of Stage 1, turned out to be a rather low-hanging fruit for most providers," she says. "But, that’s because if you look at the original denominator, just for medications – it was based on the number of unique patients with at least one medication order." A physician who placed one of the 10 medications for a complex patient via CPOE met the requirement for Stage 1, Kreofsky says. "Now you look to the new CPOE objectives; the denominator has changed to all orders entered, and it also includes radiology and lab," Kreofsy says. "The radiology and lab is not a particularly difficult objective for providers to wrap their arms around, because if they’re doing CPOE, they’re usually doing it across modalities. But, what gets tricky here is the ‘all orders entered’ requirement." If a provider had the same patient with 10 medications under Stage 2 and ordered three of them via CPOE, he or she would not meet the new required threshold, which would require CPOE for all of the medications, she says. "Providers who have been a little off on the CPOE margin or who have been inconsistently using CPOE could find themselves dipping below the threshold," Kreofsky adds. "What’s different about CPOE, is we know it changes, numerator and scope and there is also a timing nuance here," she says. "There are something like four or five measures that change from Stage 1 to Stage 2, and they often take affect before Stage 2." "There are some gotchas around timing of different requirements," Kreofsky says. Kreofsky’s advises that physician practices run the numbers in 2013 to see what happens when the denominator is changed. Some percentage of doctors won’t pass. Organizations will then need to make a decision, on whether to implement the new denominator in 2013 or wait until Stage 2 and do a lot of intervention and coaching. Do some target intervention to help doctors who aren’t doing so well with CPOE. They may know how to use it, but they may not understand the expanded requirements needed, she says.
15 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
Cloud-based EHRs could save docs from acquisition 05 September, 2013 | Fierce EMR http://www.fierceemr.com/story/cloud-based-ehrs-could-save-docs-acquisition/2013-09-05 Upgrading software to more fully integrate revenue cycle management, practice management and electronic health records may be the key to helping thousands of physician practices remain independent, according to a new Black Book survey. Federal mandates to adopt health IT are driving independent physicians to join hospitals or health systems that can handle the technology while the docs continue to focus on their patients. Yet a majority of independent providers want to remain that way, according to Black Book senior partner Douglas Brown. "Profit challenges have forced the number of practices actively seeking acquisition to more than to triple until recently, as cloud EHRs with RCM innovations have given independents new hope," Brown said. Its report on the state of the revenue cycle management (RCM) industry--a $12 billion segment among physician practices--cites demands on providers due to reimbursement and payment reforms, accountable care participation, ICD-10 coding challenges and declining revenues. Among the survey findings with 8,000 respondents: •
87 percent of all physician practices agree their billing and collections systems/processes need upgrading
•
92 percent of those seeking an RCM-practice management (PM) upgrade or replacement are only considering an EHR-centric applications
•
96 percent of practices achieving Meaningful Use 1 attestation and those highly satisfied with EHR vendor performance agree that fully integrated practice management/revenue cycle management systems equipped with EHR software are the key to practice survival and independence from acquisition
•
88 percent of business managers fear that their outdated revenue cycle management systems, particularly those not integrated to EHRs, will force their physician to sell the entire practice within 12 months or close it
•
88 percent of hospitals and 76 percent of large physician groups that had bought independent practices said there was little or no salvageable technology (EHR, PM, or RCM) among the practice assets
Black Book named Irvine, Calif.- based Kareo, Inc. the top ambulatory EHR/practice management/revenue cycle management vendor. Runners up included Care360/Quest Diagnostics, Care Cloud, athenahealth, eClinicalWorks, Vitera, McKesson, Optum, SimplifyMD, Greenway
16 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
Medical, Practice Fusion, GE Healthcare, Epic, e-MDs, NextGen, Allscripts, ChartLogic, ADP AdvancedMD, and Henry Schein MicroMD. Black Book previously predicted that more than half the EHR vendors in the market today won't be around in five years.
17 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
Strategy Northeast Georgia, Habersham Medical Centers to Form Partnership 12 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/northeast-georgiahabersham-medical-centers-to-form-partnership.html Gainesville, Ga.-based Northeast Georgia Medical Center has signed a letter of intent with the Habersham County Hospital Authority to work toward a partnership with Habersham Medical Center in Demorest, Ga. Both groups specified in the letter they would work toward a possible lease arrangement, although they haven't officially decided on the partnership model, according to a news release. The two organizations will now move into a phase of due diligence, which officials expect will last until late fall. After that, the medical centers expect to sign a definitive agreement and submit it to the state's attorney general for review. The attorney general's review will likely take four to six months, and hospital officials don't expect any operational changes to take place until spring 2014, according to the release.
Southern Illinois Healthcare Partners With BJC Collaborative 11 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/southern-illinoishealthcare-partners-with-bjc-collaborative.html Southern Illinois Healthcare in Carbondale has joined the BJC Collaborative, a loose coalition of Midwestern health systems, with the goal of improving the "quality and efficiency of healthcare" throughout the region. The three-hospital Southern Illinois Healthcare is the sixth system to join the BJC Collaborative since its inception in October 2012. BJC HealthCare in St. Louis, Memorial Health System in Springfield, Ill., Saint Luke's Health System in Kansas City, Mo., and CoxHealth in Springfield, Mo., were the founding members. All members of the coalition remain independent. However, hospitals and health systems within BJC Collaborative partner on access to clinical programs and services, supply chain and other areas that will lower their healthcare costs and benefit their respective patients and communities. "Southern Illinois Healthcare has taken a bold step in the rapidly changing face of healthcare and aligned itself with an excellent group of healthcare providers," Southern Illinois Healthcare President
18 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
and CEO Rex Budde said in a news release. "This relationship is powerful. It provides Southern Illinois Healthcare with access to the shared expertise of the Collaborative partners to work together on population health management and adapt to changes coming out of managed care."
Dartmouth-Hitchcock, Elliot Health System, Harvard Pilgrim Partner to Offer Health Plan 10 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/racs-/-icd-9-/-icd-10/dartmouth-hitchcock-elliot-healthsystem-harvard-pilgram-partner-to-offer-health-plan.html Two New England health systems and a health insurer have joined forces to create ElevateHealth — a nonprofit, defined-network health plan for employers and employees in New Hampshire. Lebanon, N.H.-based Dartmouth-Hitchcock, Manchester, N.H.-based Elliot Health System and Harvard Pilgrim Health Care of New England created the new insurance plan to promote high-quality care and better outcomes for lower premiums, according to a news release. ElevateHealth will begin providing coverage Dec. 1 and will feature enhanced provider-driven care coordination and care coordination professional guides for enrollees. The health plan will also involve nurses as patient advocates and clinical liaisons with primary care providers and specialists, according to the release. The health systems expect their contracting arrangement and focus on care coordination will allow for lower premium costs.
Proctor Hospital Agrees to Merge With UnityPoint Health-Methodist 09 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/proctor-hospitalagrees-to-merge-with-unitypoint-health-methodist.html Executives at UnityPoint Health-Methodist and Proctor Hospital, both based in Peoria, Ill., have signed an initial affiliation agreement that would merge the two organizations under one system. Financial terms of the deal were not disclosed. Under the deal, UnityPoint Health-Methodist will be the sole parent organization for the 220-bed Proctor, and it will add three members from Proctor to its board. UnityPoint Health-Methodist will still be a senior affiliate of UnityPoint Health, which is based in West Des Moines, Iowa, and formerly known as Iowa Health System. UnityPoint Health-Methodist currently includes Methodist Medical Center. Proctor would become a separate hospital campus and would be renamed UnityPoint Health-Proctor.
19 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
The Illinois Health Facilities and Services Review Board must approve the affiliation, but hospital executives expect the transaction to close by the end of this year. Whispers of an affiliation between UnityPoint Health-Methodist and Proctor emerged in August.
Memorial Hermann, BCBS of Texas Announce ACO Partnership 06 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/accountable-care-organizations/memorial-hermannbcbs-of-texas-announce-aco-partnership.html Blue Cross Blue Shield of Texas has announced a partnership with Memorial Hermann Accountable Care Organization, the ACO of Houston-based Memorial Hermann Health System. The partnership, set to start in the middle of 2014, will aim to deliver improved patient care while managing healthcare costs. The model will reach these goals through the following strategies: •
Identifying illness early through care coordination and management
•
Implementing a non-fee-for-service payment arrangement
•
Lowering costs through payer and provider coordination
"This collaboration is an extension of BCBSTX's commitment to enabling innovative, value-based care delivery models, which are designed to reward physicians for managing costs and quality of total patient care while moving from the traditional fee-for-service approach to a fee-for-value payment model," Robert Morrow, MD, senior medical director for BCBSTX, said in the news release. "Our relationship with Blue Cross Blue Shield of Texas around accountable care activities is consistent with Memorial Hermann's commitment to quality outcomes and cost management," Chris Lloyd, CEO of MHACO, said in the release. "The efforts we will undertake together will continue to advance the health of the populations we serve." MHACO has participated in the Medicare Shared Savings Program since July 2012 and has had a commercial ACO contract with Aetna since April.
Chester County Hospital Joins University of Pennsylvania Health System 05 September, 2013 | Becker's Hospital Review http://www.beckershospitalreview.com/hospital-transactions-and-valuation/chester-countyhospital-joins-university-of-pennsylvania-health-system.html Chester County Hospital and Health System in West Chester, Pa., officially became part of the University of Pennsylvania Health System in Philadelphia Wednesday.
20 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3
The 245-bed Chester County Hospital is the fourth acute-care hospital member of UPHS, joining the Hospital of the University of Pennsylvania, Pennsylvania Hospital and Penn Presbyterian Medical Center, all of which are in Philadelphia. Chester County Hospital also has five satellite locations. Financial terms of the deal were not disclosed. Chester County Hospital signed a nonbinding letter of intent to join UPHS in January. In August 2012, the organization formally sought a partner to help gain access to capital for several facility- and technology-based investments.
Welcome, Dean Health Systems to SSM Health Care! 03 September, 2013 | SSM Healthcare http://www.ssmhc.com/internet/home/ssmcorp.nsf/News/FFED54854EA3CD2E86257BDB00525B 6C SSM Health Care and Wisconsin-based Dean Health Systems have finalized the agreement to merge the physician-owned Dean and its subsidiaries, including Dean Health Plan, into SSM Health Care. The merger was finalized on Sept. 1 after all necessary regulatory approvals were received. This is the biggest transaction in SSM’s history, and the merger creates one of the largest integrated health delivery networks in the country. According to SSM Health Care President/CEO William P. Thompson, the combined expertise and resources of SSM and Dean will mean more coordinated care to keep people healthier and improve the patient experience. "Dean and SSM have a long tradition of caring for people, and together we will create a new model of care and caring that will lead to healthier people in Wisconsin and beyond," Thompson said. "We remain absolutely committed to what has made both Dean and SSM successful in the past: doing what is best for the people we serve," he said. The merger also cements the 100-year relationship between Dean and SSM. Dean was founded in Madison in 1904 and SSM has been present in Madison since the founding of St. Mary's Hospital in 1912. Dean Health Systems, Inc. consists of a network of more than 60 clinics, insurance provider Dean Health Plan, Davis Duehr Dean eye care and pharmacy benefits company Navitus Health Solutions. Its new leadership team was also announced Tuesday. They include Dr. Gaurov Dayal, SSM Health Care president/CEO for health care delivery, finance and integration and interim regional president of SSM Health Care of Wisconsin; Allison Mooney, interim president/CEO and operating officer for Dean Clinic; and Lon Sprecher, president/CEO of Dean Health Plan. The merger was announced in April 2013. Welcome Dean employees and physicians to SSM Health Care!
21 | S u t h e r l a n d I n s i g h t s H e a l t h c a r e N e w s F l a s h . 1 6 0 9 2 0 1 3