Essay 1. The greatest effect on hospital’s margins will be the rise in a number of ACOs and the Meaningful Use (see quotes from hospital managers below). Discuss the advantages and disadvantages of ACOs. Discuss the advantages and disadvantages of EHRs in relation to meaningful use.
Accountable Care Organizations: “The financial pressures over the years have only increased and the margins have only become thinner. The margins on outpatient services are larger than on inpatient. The whole ACO model is where doctors and hospitals … will take a more comprehensive look at the [financial] pie—it’s not the doctor’s pie and the hospital’s pie with different margins, now there will be one pie to divide.”–Rooney
Meaningful Use: “Reimbursements are going to be reduced for hospitals if they don’t effectively implement EHRs, and demonstrating meaningful use is extremely costly… so the ability to actually incur that cost as well as the possible downside impact if don’t implement their EHR well could be a double whammy. It’s one of the reasons you’ll all see more independent hospitals looking for partnerships, alliances and acquisitions.”–Ortiz
Essay 2. There have been many alliances being formed in the last few years (e.g., local St. Lawrence Health System). Discuss the advantages of two healthcare related organizations forming an alliance. Are there any disadvantages?
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