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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Q&A: Avalere finds most ACOs would benefit from taking on downside risk with APM bonus

If the 5 percent bonus payment in the Advanced Alternative Payment Model (APMs) track was available in 2015, accountable care organizations (ACOs) would’ve earned additional net payments of $886 million if they had assumed downside risk under the Medicare Shared Savings Program (MSSP).

Virtual reality system recreates real-life tasks to improve patient development

Saebo, a producer of medical devices focused on engagement and development, has received clearance from the U.S. Food and Drug Administration (FDA) for its SaeboVR software system. The system is a rehabilitation program designed to use virtual reality to help patients engage in physical and cognitive activities.

M&A activity increased among larger systems in 2nd quarter

Thirty-one partnership transactions among hospitals and health systems were announced in the second quarter of 2017, and 58 have been announced so far this year, according to an analysis on merger and acquisition (M&A) activity by Skokie, Ill.-based consulting firm Kaufman Hall.

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Physician compensation up nearly 3%; productivity, collections flat as costs rise

Most doctors saw a similar increase in compensation last year as they had in 2015, with an average raise of 2.9 percent across all specialties reported in the American Medical Group Association’s (AMGA) annual medical group compensation and productivity survey. Productivity, however, remained flat, and the move to value-based incentives in compensation continues to be slower than anticipated.

Google Glass eyes more significant role in healthcare

Google is hoping to become a bigger player in healthcare with recent improvement to Google Glass. A recent blog post, published by project lead Jay Kothari, showcased improvements to Glass aimed at integration into healthcare.

AHA disputes POLITICO story on hospitals decreasing community spending post-ACA

A POLITICO analysis said while the nation’s top hospitals saw a big jump in revenue after the Affordable Care Act took effect, they spent less on the charity care and community benefit spending often used to justify their tax-exempt status.

Technology from a Mount Sinai Startup (Cardea Sciences) That Will Improve Outcomes for Cardiac Patients Wins the NYC Life Science Innovation Showcase

Technology for identifying at-risk atrial fibrillation (AFib) patients was chosen as the winner of the inaugural Alexandria LaunchLabs Scholarship Award, which recognizes excellence in health care technology, entrepreneurship and business competencies. The technology, developed by a Mount Sinai researcher and entrepreneur, Ya-El Mandel-Portnoy, PhD, was selected from entries submitted by 26 of New York City’s top academic entrepreneurs, who presented their work to investors and biopharma business executives at the 2017 NYC Life Science Innovation Showcase on June 13, 2017.

Urgent care operator American Family Care lands $1B investment

Private equity and real estate firm American Development Partners has agreed to invest $1 billion into American Family Care, the largest operator of urgent care centers in the U.S, to accelerate its expansion plans.

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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