Friday, December 28, 2012

Eight in 10 healthcare businesses impacted by bad hires


A new survey by CareerBuilder found that this year eight in 10 healthcare businesses have been impacted by bad hires, costing companies thousands of dollars.

In a survey conducted by Harris Interactive for CareerBuilder, one of the largest online employment companies in the country, 79 percent of healthcare employers reported being adversely affected by a bad hire in 2012. Thirty-nine percent of those businesses said they estimated the cost of a single bad hire to be over $25,000 and 22 percent estimated over $50,000.

The survey, conducted online between Aug. 13 and Sept. 6, 2012, questioned 276 hiring managers and human resources professionals employed at healthcare companies nationwide.

“All companies make bad hires. It’s inevitable. You can’t always be 100 percent,” said Jason Lovelace, president of CareerBuilder Healthcare.

But the cost of bad hires adds up fast, Lovelace said. There are the financial costs to recruit and train the bad hire and a possible replacement, as well as “soft” costs, such as the time lost in training and recruiting bad hires; overall employee morale is impacted, which may drive down productivity; and there may be legal entanglements and negative impacts on customers/patients.

Survey respondents classified bad hires as employees who didn’t produce the proper quality of work; who didn’t work well with other employees; who had a negative attitude; and who had immediate attendance problems, among other behavioral- and performance-related issues.

How do bad hires happen? The most common reason cited by healthcare hiring managers and human resource professionals was the need to fill a position quickly. The pressure to fill positions as quickly as possible is compounded by issues of supply and demand, Lovelace said. “The need is so great to find people with the skills necessary for clinical type positions, or just healthcare type positions in general,” Lovelace said, “(that) they’re making bad decisions because they can’t find the individuals that they need. They’re willing to settle, and typically if you settle, it’s a bad hire.”

While avoiding bad hires is impossible, it is possible to minimize bad hiring decisions, Lovelace said. Companies need to train their hiring managers where to find the types of people they need and to figure out what characteristics to look for in potential hires. It is also imperative that they put in the time to do due diligence. “Go through the process,” Lovelace said. “Speed will kill you. … an open position is better than a bad hire.”

Source: healthcarefinancenews

Wednesday, December 26, 2012

7 Strategies to Develop a Clinical Integration Network


Clinical integration is an increasingly popular strategy for hospitals to align with physicians and improve the cost and quality of care. Dennis Butts, a manager in Dixon Hughes Goodman's healthcare strategy practice, shares seven strategies for hospitals to successfully develop a clinical integration network.

1. Cultivate physician leaders. A successful clinical integration strategy requires the integrated network to be physician led and physician driven, according to Mr. Butts. "Physicians have to have enough power and authority to effect change — to [determine] how quality is defined, what protocols will be developed and how to hold each other accountable for meeting objectives." 

To lead the network effectively, it is critical for physicians to be involved in creating the clinically integrated model from the beginning; they need to have a voice in designing the structure of the network. "You can't expect a physician-driven initiative after you've already planned [the network] in the hospital and expect them to buy in to what you've already developed," Mr. Butts says.

Giving physicians leadership roles may require a cultural change in the hospital, as historically hospital administration and physicians have worked separately. "It's a real paradigm shift for most organizations where they're allowing physicians to have a significant say in how things are done at the hospital," Mr. Butts says. Physicians may also have to change their workflows to be successful in their new roles. "Physicians are going to be asked to do things differently and be held accountable for things they maybe haven't been in the past," he says.

2. Provide hospital management. Creating a physician-led clinical integration network does not mean clinical integration is solely run by physicians, however. The most successful programs have embraced a physician-led, professionally-managed culture that maximizes the experience and expertise of physicians and hospital administration, according to Mr. Butts. The hospital can provide data analytics and other resources and expertise to ensure the network is supported from a management perspective.

3. Communicate often. Another critical aspect of clinical integration is frequent communication between all parties. Clinical integration is a major change initiative and leaders should seek medical staff input early and often, according to Mr. Butts. He says one common mistake in developing clinical integration networks is when leaders assign small committees to work on different initiatives, but don't have a robust strategy for these committees to communicate with each other and to the broader medical staff.

4. Choose metrics. Clinical integration networks should choose metrics that span the continuum of care, according to Mr. Butts. "Make sure your metrics cover the inpatient side as well as the outpatient side, so you're not focused on just what happens in the hospital, but also what's happening in the physician practice," he says. He also suggests focusing on metrics related to care transitions between sites and adopting the same metrics across payors.

5. Invest in infrastructure. A successful clinical integration network requires investment in infrastructure that can connect the hospital and physicians through patient registries and other electronic systems. A robust infrastructure provides the tools physicians and hospitals need to monitor quality and cost. "Without that infrastructure in place or access to real-time data, physicians will not be able to change [clinical] patterns to achieve the objectives of the network," Mr. Butts says.

Clinical integration networks can reduce the cost of developing appropriate infrastructure by building off an existing structure. For example, Mr. Butts says the network can build upon the infrastructure already in place from a messenger model physician-hospital organization or independent practice association if they exist. "Instead of recreating the wheel, see if there's an entity already created that is still usable to reach the objectives you're trying to meet," Mr. Butts says.

6. Create a short-term win. When hospitals and physicians develop a clinical integration network, they can build payors' support of the network by quickly demonstrating improvement. Targeting low-hanging fruit to demonstrate improved quality and cost can help validate the clinical integration model. Oftentimes hospitals go after low-hanging fruit by starting with hospital efficiency initiatives in the acute setting or within the hospital-sponsored health plan. When the network negotiates with payors, it can use data from these initial improvements to attain favorable contracts, according to Mr. Butts.

7. Determine a distribution method. Leaders must develop a methodology to distribute incentive dollars once they are in the network. The distribution methodology should 1) distribute funds based on measurable performance, 2) be transparent, 3) reward physicians for their individual contribution and performance and 4) maintain a level of simplicity, according to Mr. Butts. He says leaders of the network often build individual and network incentive pools into the distribution methodology to achieve these objectives.

Source: beckershospitalreview

Thursday, December 20, 2012

Mobile e-prescribing can add many benefits to a physician practice


The adoption of e-prescribing is not only rewarded by the federal government, but a failure to do so could leave practices open to federal penalties. According to the American Medical Association, physicians who don’t adopt e-prescribing when eligible will face penalties starting in 2012. Eligible physicians are subject to a 1.5 percent Medicare payment reduction based on their 2013 Medicare Part B fee schedule amounts during the year. The penalty is 2 percent in 2014.

Mobile e-prescribing allows physician practices to monitor patient adherence to medication more effectively anytime and anywhere, increasing quality of care. Research has shown that e-prescribing is among the top five requested mobile features by physicians. Many physicians say mobile e-prescribing helps them handle prescription requests as soon as they are needed. Regardless of the doctor’s location, they can continue to give fast, accurate care to their patients.
Another advantage is that e-prescribing increases patients’ compliance to medication usage by simplifying the prescription-filling process. With e-prescribing, a refill request goes directly from the doctor’s office, home or mobile device to the pharmacy electronically, and the practice gets an automatic confirmation that the pharmacy received the request and filled the prescription. Paper prescriptions, on the other hand, may lead to a breach in the patient care continuum because doctors have no accurate means of monitoring if patients have filled the prescription.

E-prescribing saves time and money, streamlining the prescription process in many different ways. First, doctors may prescribe a medication or refill a prescription from anywhere and at any time with a mobile device, without the need to wait until they arrive to the office. Second, the prescription request is sent directly to the pharmacy with the click of a button.

Third, pharmacists can see the e-prescription information on their computer or mobile device, drastically reducing their chances of misreading the prescription. The need to call the doctor’s office for clarifications is also greatly reduced, if not eliminated. Currently, 30 percent of all prescriptions require pharmacy call backs, according to the National Committee on Vital Health and Statistics (NCVHS). Considering that 3 billion prescriptions are filled in the U.S. every year, 900 million calls result from pharmacies clarifying information – which makes the time an average practice spends on the phone clarifying prescriptions staggering. Unlike a paper prescription, an e-prescription is clearly presented and comes with detailed information about the medication, including dosage, side effects and medications with which the prescription may counteract. This ultimately helps doctors, pharmacists and patients prevent mistakes and lead to better patient care.

Lost paper prescriptions can become a thing of the past. Paper prescriptions can be misplaced or lost, which in a best-case scenario is inconvenient for both the patient and the doctor. An even worse outcome of a lost prescription might include patients not refilling the prescription at all, possibly resulting in adverse health consequences. E-prescriptions also reduce the possibility of fraudulent behavior or illegally filled prescriptions, because prescription requests can be sent directly to and viewed exclusively by the pharmacist.

Patients want the convenience that mobile e-prescriptions bring. Research shows that patients want the ability to request a prescription renewal through a patient portal using their mobile device. As a society, we are entering a phase of patient empowerment – fueled by mobile access to information, improved care and convenience. A physician’s decision to e-prescribe demonstrates that the doctor is up to date on his or her medical methodologies for treating patients and is willing to make changes to benefit them.

Physicians who e-prescribe enable patients to take full advantage of doctor-pharmacy technology, gain important insight into prescription information and select the location where patients want their prescription filled, so they can conveniently pick it up. These important capabilities benefit the patient and strengthen patients’ view of their physician’s technology practices.

Source: mhimss

Tuesday, December 18, 2012

Focus on branding to attract healthcare consumers


As patients assume more active roles in healthcare decisions, hospital executives should make branding a top priority, according to the new issue of healthcare marketing report Protocol from Smith & Jones. With an active brand strategy, hospitals can align physicians and staff with the hospital's mission and identity, as well as make communications consistent.

"Until recently, it wasn't necessary to advertise healthcare services," Smith & Jones President and CEO Mark Shipley said today in a statement. "Hospitals are now forced to brand and market their services to retain even their local consumers' care spending."

Meanwhile, patients are choosing health insurers based on brand reputation, reported The Financial. That should signal a warning to hospitals that they need to strengthen their brands to attract patients in today's competitive healthcare environment.

"More than ever before, consumers are paying increased attention to their healthcare options and selecting products and services they prefer to consume. As a result, positive brand recognition has become and will increasingly be critically important," Debra Richman, senior vice president of healthcare business development & strategy at Harris Interactive, said in the article.

To develop a strong brand, hospital executives must gauge the brand from the patient's point of view to figure out what they like or dislike about the brand, according to a March blog post from StrategicPlanningMD. It also noted that a great hospital brand appeals to emotions with a powerful experience that goes beyond quality metrics and connects to patients.

Some of those strategies can be seen in Washington state, where EvergreenHealthcare has rebranded itself as EvergreenHealth to better emphasize its highly personalized care and dedication to patients and the community, the hospital district announced earlier this month.

Source: fiercehealthcare

Thursday, December 13, 2012

Brain health technology market to exceed $1B by year's end


The market for brain health technology will surpass $1 billion by the end of 2012, and is set to grow at a brisk thereafter, to between $4 and $10 billion by 2020, according to SharpBrains, a San Francisco-based market research firm.

The industry report, "The State of the Digital Brain Health Market 2012-2020 – Transforming Health with Digital Tools to Assess, Monitor and Enhance Cognition across the Lifespan," offers insights into the digital revolution transforming brain health and heath overall, officials say.

Such software includes computerized Web-based and mobile cognitive assessments, cognitive training and cognitive behavioral therapies, as well as biometrics-based monitoring and brain training tools that measure physiological responses such as heart rate variability and electroencephalography. 

"A major driver of this growth in consumer and provider demand is a significant ongoing demographic trend: an aging population," according to the report's executive summary. "On a global scale, with the total senior population expected to triple (to 1.5 billion) over the next 30 years, aging populations will make brain health even more important moving forward."

"We see a growing portion of the 78 million baby boomers in the U.S. alone investing time and effort into retaining their mental sharpness," the report reads. "This trend also motivates healthcare and insurance providers to introduce and test innovative solutions, mainly from a health & wellness (although not yet clinical) perspective."

The report finds that a market of some $6 billion is the most likely scenario by 2020. It predicts the Asia Pacific region will likely surpass North America and Europe by 2017 in its usage of the technology.

In addition to analyzing consumers' use of this technology to manage and improve their brain health and performance outside clinical settings, SharpBrains conducted in-depth analysis of more than 200 companies operating in this sector, and asked scientists to identify the most important innovation opportunities from their published research, officials say.

Among the study's findings with regard to consumers:

  • 94 percent of consumers agreed or strongly agreed with the statement: "Addressing cognitive and brain health should be a healthcare priority."

  • 83 percent agreed or strongly agreed that, "I would personally take a brief assessment every year as an annual mental check-up.'"

  • The same percentage agreed or strongly agreed that, "Adults of all ages should take charge of their own 'brain fitness,' without waiting for their doctors to tell them to."

  • Nearly three-quarters (73 percent) agreed or strongly agreed that, "Digital technologies can significantly complement other behavioral and drug-based interventions."


"Despite the economic downturn, this market has still grown from $600 million in annual revenues in 2009 to more than $1 billion by the end of 2012," said Alvaro Fernandez, CEO of SharpBrains. "With more than two billion people worldwide currently suffering from brain-based health and productivity challenges, it is rewarding to see a new generation of technologies and methodologies being developed and implemented to confront this challenge in efficient and scalable ways."

Source: healthcarefinancenews

Tuesday, December 11, 2012

Cost of treating morbidly obese patients continues to trend up


The costs associated with treating morbidly obese patients continue to rise, according to a report released Monday by healthcare supply contracting firm Novation.

In its 2012 Bariatric Report, Novation reports that 74 percent of the facilities that responded to its survey have seen an increase in the number of bariatric surgeries in the past 12 months. More than half of respondents also spent more on the treatment of morbidly obese patients in the last 12-18 months than they had in previous years.

Other key report findings include:

  • Sixty-one percent of respondents have seen an increase in the number of bariatric-related reconstructive surgeries in the last 18 months.
  • The estimated cost of all expenses related to the treatment of morbidly obese patients ranged from $200 to as much as $5 million in the last 12-18 months. Beds account for the highest total costs and/or the greatest increase in bariatric product spending at member facilities.
  • Thirty-six percent indicate that they invested in the physical renovation for their facilities to accommodate morbidly obese patients in the past year. The estimated cost of all morbidly obese-related renovations ranged from $12,000 up to $4 million.
  • Fifty-three percent have a fitness program in their facilities, 60 percent have a weight loss program and 61 percent have a counseling program.
  • In light of healthcare reform changes, the majority of respondents plan to enhance their obesity education and prevention programs. Fifty-six percent will enhance the programs for patients, while 64 percent will enhance these programs for their own employees.
  • When asked about workplace injuries related to caring for morbidly obese patients, 59 percent have seen a decrease in the past year. Of the 59 percent, 77 percent believe that it was due to purchasing specialized equipment for obese patients or offering training programs.

“The member hospitals we serve have seen a continual rise in the costs of treating obese patients, while also facing the financial pressures of the economy, reduced reimbursement and changes under healthcare reform,” said Cathy Denning, vice president, sourcing operations at Novation.

Denning believes this upward cost trend is likely to continue.

“We see childhood obesity continuing,” she said. “From that perspective, we can anticipate this will be a problem for many years to come… To close our eyes and not accommodate (for these patients) is foolhardy.”

Denning cites the need to purchase larger beds, widen hallways and elevators and renovate bathrooms as major cost drivers in the care of morbidly obese patients.

However, hospitals are showing a willingness to spend the money necessary to renovate, she said.

“Hospitals are willing to invest those dollars to do that, even in these times,” said Denning. “Capital budgets are loosening. It speaks well of facilities that are appropriately investing where they need to.”

“We have to take care of these patients safely,” added Denning. “In the future, reimbursements will depend on it. If there is a patient incident in your hospital, you own that.”

According to Donna Simon, bariatric coordinator at Phoenix-based Banner Health, staff training also accounts for a portion of the additional costs associated with caring for morbidly obese patients.

Training includes proper techniques for lifting and moving obese patients and also concentrates on teaching sensitivity, said Simon.

“Sensitivity is one of the biggest things,” Simon said in an interview withHealthcare Finance News in August. “We have staff sensitivity training because everyone is a person, but people don’t know how to treat the obese. Every employee goes through sensitivity training every year, not just at the time of hire.”

Source: healthcarefinancenews


Thursday, December 6, 2012

Financing a transition to the cloud


Transitioning to cloud services may be the next big technology move for your organization. What’s involved? How much does it cost? Is it worth it? We talked to some folks familiar with cloud computing for “Navigating the Cloud,” an e-supplement available on our websites in November. Here’s an excerpt from “Financing your transition to the cloud.”

What is the cloud and why does my healthcare organization need it?

Terry Rennaker, vice president, Skanska USA's Mission Critical Center of Excellence, and Andrew Quirk, senior vice president, Skanska USA’s Healthcare Center of Excellence: Cloud is a term for computing that is done on multiple servers and possibly in multiple data centers on a flexible platform that can move the computing around as computing demand and capacity change. A cloud can be small and contained within a single data center and can serve a private use, or can be large, covering multiple data centers and serving multiple clients. … In both cases computing and storage capacity is purchased from the provider who then hosts the computing of the procuring company. This provides a flexible computing base to the customer providing computing and storage in a utility like model; use it when you need it and pay only for what you use.

This decouples the need for building your own facilities and buying servers to satisfy your computing needs.

This is important to healthcare organizations as an outlet for their computing needs, which are growing exponentially as a result of bring your own device (BYOD) pressure, electronic medical records, electronically interconnected medical equipment and


many other demands on IT infrastructure. The cloud can provide a rapidly responsive computing capacity to ever-changing and escalating computing needs.

The challenge for healthcare organizations is to move to the cloud while maintaining all of the security and compartmentalization required by healthcare regulation and patient record security.

What are the costs associated with transitioning to the cloud, and are there “hidden” costs?

Tony Vitelli, director of managed services, Infor: There are costs necessary to facilitate the transition to the cloud, but they are quickly recoverable and can provide an attractive ROI. Depending upon the application, up-front costs may include a migration project and all that those entail (testing, data validation, etc). In many cases the application will not change with a migration to the cloud (no end user effect). Also, by timing these moves to previously planned hardware spend, we find that the initial investment needed can be significantly lower than continuing with the status quo.

By doing the proper amount of due diligence and planning, hidden costs can be greatly minimized or even eliminated. As mentioned previously, by timing your move to the cloud with previously planned activities, the cost of migration can usually be accomplished with existing budget. Even in cases where an existing contract may not have an out clause, changing business requirements may still allow for an attractive ROI. Regarding security, this is always a concern, with a proper amount of due diligence and proper architecture you can be comfortable that your data is safe.

Source: chiroeco

Tuesday, December 4, 2012

ACA brings new opportunities, challenges for revenue cycle management


The U.S. Supreme Court’s decision on the Patient Protection and Affordable Care Act has brought much-needed clarity to hospitals and other healthcare providers. With the uncertainty gone, providers can now fully assess and plan for the Affordable Care Act’s (ACA) effect on revenue cycle management (RCM).

Virtually every aspect of the ACA affects RCM, including:

Funding Cutbacks: The ACA calls for dramatic funding and reimbursement reductions, including more than $700 billion in future Medicare spending. For non-profit hospitals, Medicare reimbursements will be reduced over 10 years by more than $150 billion, and $14 billion in Medicaid disproportionate share hospital payments will be cut, according to Moody’s Investor Services.

Also, the Supreme Court gave states the option to accept or reject federal money for Medicaid expansion. In some states, providers will have to project whether their state will opt in or opt out of federal funding. If a state chooses to forgo the expansion, a provider could still be faced with significant numbers of uninsured patients and experience Medicaid payment shortfalls.

In terms of RCM, these cutbacks and continued uncertainty in some areas make it even more important to identify and maximize payments and collections since hospitals typically operate on a 1-3 percent bottom line margin. Any cutbacks in reimbursement will have a definite negative effect to the bottom line and could quite possibly make the difference between continuing to serve the local community and closing their doors, especially for rural facilities. Typically in order to add one point to the bottom line margin, there needs to be a 10 percent reduction in costs to the top line. With decreasing reimbursements, this makes managing such cost cutting measures even more difficult. It also makes being competitive in the market place that much more important. 

New Quality-Care Programs, Reimbursement and Incentive Models: With the goal of providing better care at lower cost, the ACA includes pilot or expanded programs to test different models. The Center for Medicaid and Medicare Services’ value-based purchasing program, for example, provides incentive payments to hospitals that meet or exceed certain performance benchmarks set by CMS. Other programs include bundled payments and shared savings initiatives.

In terms of the effect on RCM, all of these programs require comprehensive reporting, including the collection of significant data about clinical outcomes, detailed billing and reimbursement records, and compliance information.

In addition to meeting requirements, more robust RCM systems can also provide valuable insights into costs and help identify areas for improvement. If a hospital is penalized, for instance, for an unusually high rate of readmissions or hospital-acquired infections, it can mine its data to identify root causes and trouble spots, and devise solutions.

Compliance, Oversight and Enforcement: Much of the ACA changes involve compliance with new criteria, such as medical necessity standards. Similar to the outcomes-based programs mentioned earlier, RCM systems must have the capacity to collect and integrate clinical and other types of information.

Along with new compliance standards, the ACA also has an oversight and enforcement component. The Recovery Audit Contractor (RAC) program is designed to root out fraud, waste and abuse. Documentation practices will be put under a microscope, necessitating RCM systems with tight controls, access and audit capabilities. These advanced systems can also help identify areas with recurring errors or other issues.  

Huge Influx of New Patients and Data: Once coverage for the uninsured begins to expand in 2014, providers are likely to see an unprecedented increase in demand. RCM systems will have to capture and analyze a tremendous amount of new information, including: insurance eligibility and authorizations for Medicare, Medicaid and private insurance; coding; medical outcomes; compliance with clinical standards; payment and reimbursement requirements; doctor payments; and claims, billing, payment and collections data.

Increasingly, RCM systems will also have to function as interactive patient portals.

Looking Ahead

As providers determine the best strategy to meet broad new requirements, they may choose to update, modify, replace or outsource RCM systems. With the cost and complexity of RCM, outsourcing will play a more central role, enabling providers to minimize upfront investment costs, increase agility and flexibility, reduce the need for training and hiring, and provide ongoing savings.

Many providers have found that the bottom-line effect of outsourcing is significant. One large RCM provider that works for providers on a gain share basis, which is similar to a contingency fee arrangement, achieved a 400 to 600 basis point improvement in margins for its hospital clients, effectively doubling operating margins.

The ACA has dramatically changed the operating environment for healthcare providers. One of the most important tools they can put in place to help adjust to and benefit from the law is a multi-faceted RCM system. While the changes under way are challenging, they also offer a rich opportunity for healthcare providers to use RCM to make their facilities run more efficiently and cost-effectively and provide higher-quality care to patients.

Source: healthcarefinancenews