Today’s growing and advanced health care industry is a fast-paced environment where regulatory issues, competition, and rapidly changing consumer expectations converge. Managing risks and realizing opportunities becomes a more important focus as health care organizations decide how they will adapt and evolve their business models for long-term survival.
Ensuring today’s actions will lead to achieving long-term goals can be a major challenge for anyone. Many health care organizations are unable to address the issues at hand and consider the “big picture” because they are overwhelmed with urgent matters and patient care. Our firm’s National Health Care Practice has significant experience serving health care clients. We bring an understanding of the industry together with innovative solutions that have a positive impact on bottom line. We understand the challenges facing health care providers and facilities.
Significant regulatory concerns facing the health care industry include:
Other major issues include:
In an age of digital communications, cloud storage and automated processes, health care looks to be the next industry to experience “disruption” as health IT and telemedicine will revolutionize the way providers render services and keep records, and the way patients receive consultation and treatment. Health care providers will need to familiarize themselves with these two terms as they will become more and more prevalent as more development is made.
The IRS issued Notice 2019-45, which adds 14 new preventive care items to the list of benefits that may be reimbursed by high deductible health plans without meeting any deductible amount. Specifically, Notice 2019-45 identifies items that may be considered preventive care for those with chronic illnesses.
Accounting Standards Update 2014-09, “Revenue from Contracts (Topic 606)” was issued in 2014 and eliminates industry-specific revenue recognition guidelines and replaces it with a single, principles-based standard that applies to most industries, with exceptions. Although these changes went into effect in 2018 (for early adopters and public filers), many health care providers are only now understanding how to implement these new standards for their year-end financial statements.
The “Amazon effect” is finally being felt
in health care. With this phenomenon,
more emphasis is placed on data, which
means more money on technology and
systems, and bigger investments in
infrastructure. Not every practice will
have the resources to manage this seismic
disruption, and those that fail to keep
up may find themselves at a competitve
disadvantage. More than 500 hospitals
have merged into larger health systems
in the past 10 years. In the last six years,
$100 billion has been spent on hospital
consolidation. Thinking about a sale
or strategic partnership? Below are 10
factors to consider.
Health care is not only one of the
largest industries, but it is also one of
the most complex. The combination of
the size and complexity of the industry
has resulted in endless frustration for
practice managers when interpreting
intense quantities of data. How are
industry leaders supposed to make sense
of this convoluted information and turn
it into stronger results? The answer, in
short, is benchmarking. Benchmarking,
in this instance, is comparing the
processes and metrics of a single
business to those in the industry.