Healthcare Reform: The Battle Continues

HEALTHCARE REFORM: THE BATTLE CONTINUES

The rapidly changing landscape in the healthcare industry presents significant challenges to industry executives. As state and federal agencies continue to squeeze the system for cost savings, many providers are struggling to find ways to cut costs, maximize reimbursement, and in many cases merely survive another year. Earlier this month, the Healthcare Association of New York State (HANYS), representing more than 550 providers in New York, sent a letter to Representative Charles Rangel. In the letter HANYS expressed its support for comprehensive health care reform, but also expressed concern on the impact on New York providers, and their ability to effectively implement reform. In a recent publication, Compound Fractures, HANYS estimates the impact of recent budgets cuts on New York providers to be $3.87 billion for the period January 2008 through December 2010. As the financial condition of New York providers continues to deteriorate, many do not have the financial ability to absorb additional funding cuts. 

The impact of healthcare reform is not limited to providers. The America's Health Insurance Plans engaged PricewaterhouseCoopers (PwC) to evaluate the impact of certain components of the health reform bill on the cost of private insurance. PwC's report created quite the stir in the media, and members on both sides of the aisle were quick to capitalize on the report to steer the debate. The overall conclusion in the report indicates that the health reform bill would increase the cost of private insurance coverage for individuals, families, and businesses in excess of what the cost would be without passing the reform bill.

All parties involved in the healthcare reform debate agree that reform is necessary; however, the details of the final legislation remain uncertain. Some believe that without a public option, true reform is not possible. Others believe tort reform is necessary in order to eliminate excessive cost from the system and reduce the burden on providers. As the political chess game continues in Washington, the rhetoric and lobbying efforts continue to intensify. Industry and lobbying groups are stepping up their efforts to influence legislators as negotiations continue in Congress. 

Some say that history will be made upon passage of the health care reform bill. This may be true, however, reform will continue to evolve as providers adapt and new challenges arise. One thing is certain, whichever side of the debate you fall on: reform is coming.

The Grassi Healthcare Team helps physicians, medical practices, healthcare institutions, nursing homes, and other healthcare businesses reach a higher level of success. For more information on Grassi Healthcare, go to www.grassicpas.com/healthcare.