Archive for October, 2008
It’s the Ecomony
Direct patient/procedural care access isn’t the only reason healthcare systems look at vendor management and vendor compliance policies. It’s about business operations. Managing complex supply requirements while keeping inventories as skinny as possible means that vendors have to be carefully selected and monitored in any economy. Layer a struggling economy on top of that, and many healthcare providers will soon face increased demand against falling revenue.
Here’s what one healthcare system, Health Partners/Regions Hospital in St. Paul, MN, recently sent to its vendors to reinfoce that its policies are about business practices with all vendors, not just procedural care safety.
As a Level 1 trauma center and primary community resource for the under-served, each year Regions incurs noteworthy un-reimbursed expenses. Last year, approximately 22% of the care we gave was not reimbursed in any way. In addition, we routinely provide care that costs us more to provide than we receive in reimbursement from payers.
Add comment October 27, 2008
Current Bankruptcy Rates
Given the economic stumbles of the past few weeks, I wondered what the business bankruptcy rates are currently. Well, I couldn’t find an up to the minute count of filings for the US, but I did develop what I’ll call the BPM or Bankruptcy Page Metric. Just counting the number of pages of Chapter 11 filings in the US Bankruptcy Court, District of Delaware gives you a rough economic indicator:
Pages of Filings in:
- January, 2008 — 3 pages
- February, 2008 — 3 pages
- March, 2008 — 3 pages
- April, 2008 — 2 pages
- May, 2008 — 10 pages
- June, 2008 — 8 pages
- July, 2008 — 10 pages
- August, 2008 — 16 pages
Hmmmmm. What to do?
Add comment October 22, 2008
OIG Research Suggest Its List Misses 6 of 10 State Sanctions
Earlier this year, we highlighted an AP article that documented the inconsistencies between state level sanction records and the HHS OIG LEIE (List of Excluded Entities and Individuals). Now we have a copy of the report of David Frank, Director, Medicaid Integrety Program Centers for Medicare & Medicaid Services.
His memo, State Medicaid Agency Referrals to the Office of Inspector General Exclusions Program, OEI-01-06-00301, draws these conclusions:
- About two-thirds of Providers with Final Actions Imposed by State Medicaid Agencies …Were Not Found in the Exclusions Database
- Eleven States had a match rate of less than 25 percent, specifically: Arkansas, DC, Florida, Massachusetts, Nebraska, Nevada, New York, North Carolina, Oklahoma, Rhode Island, and Wyoming.
You can check your own state and read the full report, State CMS Medicaid Referrals to OIG Exclusions.
The memo continues, “Providers who are suspended, excluded from paricipation or otherwise sanctioned by a State Medicaid agency …by State Medicaid agencies are subject to a permissive exclusion by OIG.” In other words, if a healthcare provider uses federal Medicaid/Medicare funds to to pay a state-sanctioned provider, the healthcare provider can be considered in violation of the federal medicaid payment practices.
Comprehensive medical and vendor credentialing programs MUST include state as well as federal sanction checks.
Add comment October 17, 2008
Credit Crunch and You
Most of us probably think about the credit crunch in terms of how it affects our personal finances or our employer. Jason Busch over at Spend Matters recently posted a bit about how the credit crunch might make you more interested in your supplier’s credit status than your own.
His point: Even strong suppliers can be caught in credit tightening. You probably don’t want to lose access to your preferred suppliers due to tightening credit. So with a litte proactive creativity on your part, you might be able to help your suppliers and yourself. For example, early payment discounts could save you a bit and get cash in hand to your supplier faster. Also, if you can sign a contract for new orders, rather than relying on a PO, might give your suppliers an edge in negotiating with their banks.
See the full posting here: Act First Before Your Suppliers Credit Lines are Taken Away
The foundation of credit is trust. Underneath the credit crunch is a loss of trust. Now is the time to use the tools at hand to reinforce the trust you have in your vendors.
Add comment October 7, 2008
