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New Era Impact Modeling Service
Have you quantified how market forces will change your bottom line?
The changing economics of health care resulting from the financial crisis, reform legislation, and other market forces are certain to have a dramatic effect on providers in the coming months and years. A reduction in payment rates from both governmental and commercial payors is one clear development on the horizon.
What is less clear is the impact of the New Era on individual hospitals and health systems and their bottom lines. Effective modeling of potential patient volumes and payor mix in a given market and translation of that volume into revenue projections based on an evolving payment model reduces the uncertainty surrounding an organization’s financial position and allows you to plan for the future with greater confidence.
Bring Greater Certainty to an Uncertain Environment
Not all legislative and market factors are fully clear at this stage, but providers can examine areas such as the following as a means of gauging New Era impact:
- Changes in Utilization
- Average length of stay reductions
- Reduced preventable admissions
- End of life care reductions
- Physician office-based services
- Diagnostic and treatment modalities
- Translation into Capacity Requirements
- Bed needs
- Physician office space
- Diagnostic and treatment services
- Impact on Financial Performance
- Payer mix shifts
- Changes to Medicare and Medicaid payment rates and methodologies
- Changes to commercial payment rates and methodologies
- Impact on bad debt and charity
- Cost structure implications
While global principles apply, it is essential to incorporate local market dynamics, demographics and economic outlook, and specific physician alignment plans and other strategic initiatives in order to create a robust analysis of the impact on your organization.
The Kaufman Hall New Era Impact Modeling Service analyzes data related to key drivers across the organization to deliver informed projections of financial performance over the next 5-10 years. Through this analysis, the solutions helps determine to what degree you will need to make adjustments to your cost structure and strategic plans in order to achieve your financial performance goals.
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