Economics

This channel highlights factors that impact hospital and healthcare economics and revenue. This includes news on healthcare policies, reimbursement, marketing, business plans, mergers and acquisitions, supply chain, salaries, staffing, and the implementation of a cost-effective environment for patients and providers.

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2017 hospital M&A activity outpacing 2016

The number of hospital mergers and acquisitions (M&A) has reached 87 through the end of the third quarter, according to an analysis from consulting firm Kaufman Hall, putting 2017 M&A activity in the sector on pace to surpass the 102 deals that were completed in 2016.

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Hurricanes cost HCA $140M in Q3

The impact of hurricanes Harvey and Irma on hospitals owned by Nashville, Tennessee-based HCA Healthcare was spelled out in a preview of its third quarter earnings report, with the company saying it lost $140 million thanks to additional expenses and lost revenue at its facilities in Texas, Florida, Georgia and South Carolina.

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Some 2018 MIPS bonuses may not be worth the investment

A bonus of up to 10 percent has been proposed for using an upgraded electronic health record (EHR) system for reporting in the Merit-based Incentive Payment System (MIPS) in 2018, but speakers at two recent industry conventions warned it’s likely not a worthwhile investment for providers.

Aetna to spend $85M on New York HQ

Health insurer Aetna will spend $85 million on its new headquarters in New York City, with the state kicking in $24 million in tax credits and the city providing $6.2 million in tax abatements and exemptions.

Surgeons complete first 3D-printed titanium and polymer sternum implant

American surgeons have completed the replacement of a patient’s sternum and partial ribcage using a custom 3D-printed titanium and polymer implant. The technology has only been used once before to print a composition sternum and ribcage.

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Bundled payment cancellation by CMS draws calls for new Advanced APMs

When the previous administration at CMS finalized rules on mandatory bundled payment models for cardiac and orthopedic care late in 2016, 221 public comments were received. The cancellation of those same bundles, however, drew only 85 official comments as of Oct. 18.

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Positive results for ACO models, but CMS doesn’t publicize results

Four accountable care organization (ACO) models generated more in gross savings in 2016, but unlike in previous years, CMS hasn’t publicly touted the results as it re-examines payment models created under the Centers for Medicare and Medicaid Innovation (CMMI).

Wellpepper wins $125K, first prize in Amazon Alexa Diabetes Challenge

The Alexa Diabetes Challenge, a competition searching for innovators to develop a type 2 diabetes care platform utilizing the Amazon voice-enabled device, has awarded a grand prize of $125,000 to Wellpepper and its Sugarpod concept. The Challenge was sponsored by Merck & Co., supported by Amazon Web Services and run by Luminary Labs.

Around the web

Updated compensation data includes good news for multiple subspecialties. The new report also examines private equity's impact on employment models and how much male cardiologists earn compared to females.

When drugs are on the FDA’s shortage list, outsourcing facilities can produce their own compounded versions. When the FDA removed tirzepatide from that list with no warning, it created a considerable amount of chaos both behind the scenes and in pharmacies all over the country. 

If passed, this bill would help clinician-led clinical registries explore Medicare data for research purposes. The Society of Thoracic Surgeons and American College of Cardiology both shared public support for the bipartisan legislation. 

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