FHIweekly 6/1/23: Hidden health care compliance risks in cash pay + Securing mergers and acquisitions

June 1, 2023 | Volume XIV | Issue 22

Securing mergers and acquisitions in healthcare

Damian Chung reports for Healthcare Dive:

Economic uncertainty often stimulates industry consolidation — and in fact, analysts at both Bain and PwC are predicting that mergers and acquisitions in the healthcare industry will pick up in 2023.

But beyond financial considerations, these transactions have many other motivating benefits. As the American Hospital Association notes, M&A enables hospitals to expand service offerings, broaden networks and access to specialists, and improve quality of care to better serve patients.

But one often overlooked aspect of an M&A or partnership is the increased potential for security risks...

The Hidden Healthcare Compliance Risks in Cash Pay

Carlos H. Arce Florida Healthcare Law Firm

Increasing concerns about underpayment and non-payment by insurance companies have providers focused more than ever on cash services. Many of the active and emerging players in the med spa, IV hydration therapy, and concierge medicine spaces are misguided on the issue of compliance, however. Both legal exposure and health care regulatory compliance create real risk, even in the cash pay space.

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Finding your ideal work-life balance

Zahid Awan, MD writes in a KevinMD post:

Recently, someone mentioned that the whole work-life balance issue is overrated. They argue that they have enjoyed focusing on academics and work most of their life and feel very satisfied despite the lack of balance. There was also an assertion of a happy family life despite that so-called lack of balance.

That point is well taken, but the work-life balance is subjective, and everyone has their own preferences and priorities in life. While some prioritize their careers and academic pursuits above everything else, others may value a more balanced approach to life.

Hospital operating margins break even in April, though Medicaid redeterminations are looming according to Kaufman Hall release

Fierce Healthcare reports:

Hospitals’ year-to-date operations broke even in April, though a rise in bad debt and a dip in volumes suggest the upward momentum will likely be short-lived, healthcare consulting firm Kaufman Hall wrote in the latest release of its monthly industry report.

The group’s median year-to-date operating margin index rose slightly from -0.3% in March to 0% in April, while its monthly operating margin index landed at -0.2% for April.

Volumes dipped slightly from March across inpatient, outpatient and, to a lesser extent, emergency department settings, the firm found, but still remain elevated over the same time last year. Average length of stay increased 1% over March but remains 1% lower than in April 2022 when more hospitals were seeing COVID-19 patients.

Hospitals also saw month-over-month dips in per-day inpatient revenue (-4%) and outpatient revenue (-6%) that, again, are still improvements over 2022, according to the report. Net patient service revenue per adjusted discharge and per adjusted patient day were down 1% and 2%, respectively, from March.

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