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Wednesday
27Jan2010

Healthcare reform

There was a news article stating that an insurance company was proposing to cut reimbursements by up to 50% if they were not notified within 24 hours of a hospital admission.  I was thinking of what impact that would have if it was put into place.  The persons in charge of setting pricing would have to make some estimates across all admissions and procedures to determine how much revenue would be lost.  Then, that amount would have to be spread across the procedures that will be paid for by the insurance company.  Because reimbursements are negotiated it would be a challenge to get the cost increases passed, but once they were, how often would they be revised.  And, if the finance staff is successful at their job of estimating and negotiating with insurance companies, what benefit does this change create?  It does create more work, stimulating the economy through job creation perhaps. 

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