Hospitals And Integrated Delivery Networks

2478 Words10 Pages
Hospitals and Integrated Delivery Networks Coauthored by Jason Henry and Sharon Higgs ?2016. FedEx. All rights reserved. Introduction While adapting and complying with costly changes in regulations as well as increases in operating costs, hospitals have managed to remain profitable. This is due primarily through Medicare, Medicaid, and private insurance reimbursements for services rendered. However, new health care reform initiatives reduce percentage of these reimbursements, especially for hospital inpatient services. Less reimbursements coupled with costly phased rolled-out regulatory requirements is forcing some hospitals out of business. To stay afloat, hospital executives are looking at the…show more content…
To remain competitive and reduce the risk of succumbing to take-overs by the for-profit hospitals, not-for-profit hospitals began to unite and form IDNs to reduce costs. Over time, new healthcare reform measures were causing fundamental changes in reimbursement for services to hospitals and IDNs. Consequently, healthcare providers had to establish financial stability. This opened the door for third-party logistics providers (3PLs) to establish a strong presence in the healthcare industry. 3PLs? offered solutions to mitigate transportation and supply chain expenses that streamlined the order-to-delivery process and reduced expenses. The introduction of the Affordable Care Act (ACA) will forever be recognized as legislative history. Conversely, the ACA has altered the landscape of the healthcare industry, albeit primarily impacting hospitals. Insurance reimbursement for hospital services rendered model is now determined on a ?quality of care? model and is determined by many regulatory nuances. The ACA is being incorporated in phases over a period of years because of the magnitude of change required to comply. Furthermore, the launch of the first phases involve a drastic reduction in reimbursement; while at the same time the costs for compliance is staggering. To remain solvent, hospitals have been forced to move from an inpatient setting to various
Open Document