Reductions will be in the form of lower payments as

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Unformatted text preview: of lower payments, as well as in changes in the way healthcare providers are paid. In addition, the Budget Control Act of 2011 will likely result in additional cuts to Medicare spending and could possibly result in cuts in federal contributions to state Medicaid plans, as well. Medicare and Medicaid patients account for nearly 50% of hospital volumes and 30% of hospital net revenue. Clearly, lower Medicare and Medicaid spending will have a significant impact on Colorado’s hospitals in coming years. Similar to Medicare, commercial payers are facing financial challenges that will exert further downward pressure on hospital payments. These lower payments will come, in part, as a result of a migration away from the current fee-for-service-based payment model to new models that pay based on patient outcomes and on keeping the people in their communities healthy—thus, reducing avoidable emergency department visits and hospitalizations. Hospitals will be required to better coordinate with all providers involved in patient care, including physicians, post acute care providers, home health providers, and others, to ensure optimal outcomes for acute care episodes. One payment for an episo...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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