Healthcare Reforms Taking Effect Early

Sigonee

Posting #2

Topic: Health

Title of Article: To stay fiscally healthy, state’s hospitals want fewer patients

Author: Anna Gorman

Publication Name: Los Angeles Times

Date of Publication: March 4, 2012

Length of Article: 994 words

Main Ideas:

Some California institutions are trying to get an early start on healthcare reforms. They are trying to keep some patients out of their hospitals. Hospital executives have to adapt to a new way of doing business, such that a patient’s health will be secured and penalties would be imposed for less efficient and lower-quality care. The federal reform law changes the way hospitals and doctors will be paid; fees would be based on a patient outcome rather than on how long patients stay in the hospital or how many services they receive. The executive director for the consumer group Health Access, Anthony Wright, said he hopes the new incentives will lead to more coordinated treatment for patients. Because government insurance programs don’t cover costs, hospitals have relied on private payers to make up their deficits, but now that would become more difficult because insurers are under pressure to reduce rates as part of healthcare reform. According to Richard Scheffler, a UC Berkeley health economics professor, smaller hospitals will be among the hardest hit because they are on their own paying for administrative costs and negotiating rates with insurance companies, and the hospitals that join larger health care systems are more likely to survive.

Conclusion:

Imposing the healthcare reforms early would mean that some units in hospitals would be closed. The reimbursement for these services would either be too low or it was to be cut eventually as a part of the healthcare reforms. The healthcare reforms are going for quality over quantity; “they are trying to keep some patients out of their beds.” Many hospitals are changing their tactics for treating a patient to improve care and reduce the number of unnecessary tests in these units. The ultimate goal is to provide patients with the best care as soon as possible and to reduce costs and stop duplicating services wherever possible.