Will hospitals face tough competition in 2011?
ALPHARETTA, GA – Hospitals hiring physicians as employees and primary care physicians receiving financial incentives for patients who do well are among the 2010 healthcare trends cited in a report from Jackson & Coker.
According to the Alpharetta, Ga.-based staffing firm, trends for the coming year include more RAC audits, deeper Medicare and Medicaid cuts and fierce competition for hospitals.
"Certainly 2010 was a watershed year for healthcare transformation," said Sandra Garrett, the company's president. "Along with passage of the Patient Protection and Affordable Care Act, other notable events shaped the direction that healthcare delivery in the U.S. is likely to take in the near future."
The report cites a number of healthcare industry trends that received prominent attention in the business press and medical publications during 2010.
Important legislative trends included the Physicians Payment Sunshine Act, which requires disclosure of payments to physicians by medical device and pharmaceutical companies; implementation of the Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Act of 2008, intended to make mental healthcare more accessible and affordable; and Congressional exemption of physicians from compliance with the FTC's "red flag" rule, which focused on physicians extending credit to patients, similar to retail creditors.
Key financial trends in 2010 cited by Jackson & Coker include the hiring of physicians as employees by hospitals, as well as hospital involvement in "collective recruiting" of providers with other hospital partners; increased financial incentives for primary care physicians whose patients show significant improvement in disease management and general health; an emphasis on the hiring of advanced practice professionals (nurse practitioners, physician assistants); and states' involvement in major tort reform, which has received mixed reactions in the medical community.
Jackson & Coker also emphasized the importance of healthcare technology trends, including the widespread use of smartphones and other information technology by practitioners who want easier remote access to their patients and medical information; accelerated adoption of electronic medical records by hospitals and healthcare organizations in compliance with mandates of the Affordable Care Act; dramatic advancements in telemedicine, including innovative applications for anesthesia, psychiatry and surgery; and a notable increase in hospitals incorporating social media as part of patient education, community relations and institutional branding.
According to Calvin Bruce, managing editor of the Jackson & Coker Industry Report, 2011 promises deeper cuts in Medicare/Medicaid payouts, resulting in a surge of uninsured patients requiring medical treatment; more recovery audit contractors (RACs) to track and reduce Medicare fraud; and more competition for hospitals from non-traditional suppliers of medical care, like retail drug chains' in-store clinics.
"Absent a clear crystal ball, no one can say for sure what the future holds for health consumers, policymakers and practitioners," said Bruce. "One can only hope that the impact and benefits of medical technology, drug discoveries and scientific advancements will overshadow any setbacks experienced in implementing healthcare reform stemming from renewed debate in legislative circles."
Bruce said 2011 would also likely yield more hospital consolidations, along with increased sales of medical office buildings; more efforts by hospitals to entice retired or semi-retired physicians to resume patient care to combat the physician shortage; and less influence of pharmaceutical and medical device manufacturers on medical education as a result of alleged improprieties.
