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.

UC Irvine Health laying off 175 employees

UC Irvine Health will let go 175 employees, along with another 79 vacant positions being eliminated.

Bladder test eliminates invasive procedures for recurrence

As the fifth most common cancer in Europe, bladder cancer is one of the most expensive cancers to treat and have a high recurrence rate thus making the cost even higher. Cepheid has developed its Xpert Bladder Cancer Monitor to accurately provide information on cancer recurrence as a non-invasive and cost conscience option.

AMA offers new MACRA preparation tools

With physicians facing the most notable changes in Medicare in a generation, the American Medical Association (AMA) today unveiled several online tools to help physicians through pending Medicare payment and delivery changes and to improve their opportunity for success under the new program that will go into effect in 2017.

Pain management device combines heat therapy, electrical nerve stimulation

The topic of pain management is moving away from its current dependence on drugs into methods that incorporate therapy outside of medication. Omron Healthcare has introduced its Omron HEAT Pain Pro, which utilizes heat and transcutaneous electrical nerve stimulation (TENS) technology to treat joint and muscle pain.

Tenet to pay $513 million to settle referral kickback case

Tenet Healthcare Corporation and two of its subsidiaries in Atlanta will pay a total of $513 million to settle both civil and criminals charges of kickbacks and bribes being paid in exchange for Medicaid patient referrals.

Integrated systems, hospitals losing more money than private practices

Integrated health systems posted operating losses of approximately $210,000 per physician in 2015 compared to $14,000 per physician in private practices, according to a survey from the American Medical Group Management Association (AGMA), with hospitals' medical practice subsidiaries losing $250,000 per physician. 

Not-for-profit hospitals improved financially in 2015—but analysts say it won’t last

The operating performance for not-for-profit hospitals improved “across the board” in fiscal year 2015, according to Fitch Ratings, but those figures are expected to drop off in 2016 and 2017 thanks to changes in CMS reimbursement.

Vermont takes step towards all-payer, ACO-like system

The state of Vermont has tentative approval from the federal government to change provider reimbursement to an all-payer model emphasizing value-based care. 

Around the web

The tirzepatide shortage that first began in 2022 has been resolved. Drug companies distributing compounded versions of the popular drug now have two to three more months to distribute their remaining supply.

The 24 members of the House Task Force on AI—12 reps from each party—have posted a 253-page report detailing their bipartisan vision for encouraging innovation while minimizing risks. 

Merck sent Hansoh Pharma, a Chinese biopharmaceutical company, an upfront payment of $112 million to license a new investigational GLP-1 receptor agonist. There could be many more payments to come if certain milestones are met.