The Patient Protection and Affordable Care Act (PPACA) is a game changer for hospital and health system revenues, costs, and operations. In addition, legislative and regulatory actions, as well as industry trends, will produce a challenging economic landscape for providers in 2014. HFS executives provide insight on the significant changes and trends that healthcare organization executives can expect in 2014.
CEO Insight on the Affordable Care Act
The largest issue facing healthcare organizations is the multi-faceted impact of the PPACA on both revenues and expenses. Revenues are decreasing dramatically from both Medicare and Medicaid (Medi-Cal), which do not even cover the cost of care to their beneficiaries. At the same time, insurance companies are demanding lower rates and eliminating providers from their networks, which cannot compete on costs. This will place a premium on healthcare organizations’ ability to manage cost reduction, both labor and non-labor and to achieve revenue recovery in 2014. HFS is perfectly positioned to help accomplish these difficult competing priorities.