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Jul-31, 2009 I was raised in rural mountains of West Virginia. On many occasions my father delighted in taking the mountain roads at "roller coaster speed" rather than the suggested limit. Just before a "big one" (hill, dip or crest) he would exclaim: "Hold on kids. This is a big one!" In 2009 the healthcare industry has seen one of the worst economies in decades AND the industry's largest payor (the US of A) announced that it was going to implement the most sweeping reform of the industry in the past 50 years. Everyone - and if this word is an exaggeration it is barely so - is reexamining, inventing or trying to implement a response to one or both of the market dynamics. Healthcare is poised for a seismic shift.
Here are three areas that will be critical to your market -
1. Watch physician reimbursement. Presently there have been proposed severe cuts in physician professional fee reimbursement AND limits on a physician's ability to own ancillary services (certain radiology equipment for example). This will impact physicians in take home pay. If anything close to the proposed cuts survives the political process physicians will be aggressively looking to find financially strong partner.
2. Expect more physicians to become employed. Some national groups say that at least 50% of hospitals across the country are exploring the employment of physicians. Sooner or later employed physicians will be placed in strategically located facilities or in efficiently designed facilities if not both.
3. Last year's plan won't work. Very few organizations were prepared for both the economic downturn and the reform buzz saw. The viability of many strategic plans from 2008 is highly suspect. Capital allocated to "bricks and mortar" is now being spent on securing professional medical services. Opportunity exists to those who react quickly - especially in the outpatient service market. Interesting times - most definitely. Time to "hunker down" - probably not. The healthcare market will be moving soon and quickly. Significant decisions will need to be made in short order. Hold on; it's a big one! | |  David Petrel, JD
Senior Manager
Charis Healthcare
www.charishealthcare.com
dpetrel@charishealthcare.com
Tags: capital, economic
downturn, employed
physicians, physician reimbursement, healthcare,
payor, plan. |
