I recently attended the AHCA Multi-Facility CEO and Senior Executive Leaders Conference in Amelia Island, FL. While it was nice to escape the horrendous and unrelenting winter we have been having in the Midwest, it was even nicer to hear about the progress AHCA has made on the Hill. AHCA has made giant leaps forward on our behalf and, at least from a reimbursement and legislative perspective, it will be all quiet on the western front for the next twelve months.
During a legislative update Governor Mark Parkinson outlined how AHCA influenced the pay-for for the Doc Fix by putting quality in the spotlight. The bottom line is this: providers who are delivering quality outcomes and avoiding hospital readmissions will not be penalized (or only slightly) as a pay-for.
Tying the pay-for to quality and cost avoidance was a brilliant approach, in my opinion. This strategy aligns the industry’s goal of becoming the highest quality / lowest cost provider with the government’s goal to reduce avoidable hospital readmissions. The Doc Fix agreed to by Congress on March 31, 2014 will remain for 12 months. This means that the Doc Fix issue, and how to pay for it, will not come up again until next year.
While the Doc Fix was addressed for the next year the likelihood of any major legislative or large budget deals in the next 12 months is slim. With mid-term elections approaching and a divisive Congress, there is little concern about a new budget deal that would cut post-acute care provider reimbursements further.
If you are a long-term post-acute care provider but are not a current member of AHCA, I urge you to join and get involved. Under Governor Parkinson’s leadership, AHCA is doing an outstanding job advocating for the industry. Not only does AHCA now have a seat at the table in Washington, but they are also working side by side with key legislators and getting results.
So where does this bring us? I believe that we have a year of relative calm regarding the Federal government perspective. Providers must still contend with margin squeeze from the state movement to value-based purchasing via managed Medicaid, so now is not the time to rest. Instead, the focus must shift even more so to quality. To become the highest quality and lowest cost provider of care, providers must focus on outcomes and efficiencies. Addressing cost structures and rooting out excess costs wherever possible, particularly for your largest expense, labor, is an imperative. In addition, proper staffing and labor management will also help ensure that residents get the consistent, quality care that they deserve.
Reimbursement cuts are not off the table for good. But, I urge you to use this year to emphasize efficiencies and cost management in delivering the highest quality care for your residents.
As always, thank you for the work you do caring for our nation’s seniors. It is a difficult and oftentimes thankless job. I count myself among the lucky who get to serve an industry of such passionate and committed people.
Additional Resources
Download our Whitepaper: Staffing to Acuity: 5 Reasons To Make It Your Top Priority
Watch our Video: HCF Management Improves Scheduling Efficiency & Employee Satisfaction