Practice Management Digest – August 9, 2022

August 5, 2022

Practice Management Digest: News for August 2022.

Even as costs surge, Medicare physician payments are scheduled to decrease in 2023
Jul 08, 2022 | By Nick Hut

Amid increasing costs throughout healthcare, Medicare anticipates reducing physician payments in 2023, according to a newly released proposed rule.
The conversion factor is projected to decrease from $34.61 in 2022 to $33.08 in 2023, meaning physician payments would decrease by more than 4%. The change is based on:

  • A statutorily required update of 0% from 2020 through 2025
  • The expiration of a onetime 3% increase for 2022 that, per statute, may not factor into payment rates for subsequent years
  • A statutorily required budget neutrality reduction of 1.55% stemming from proposed changes to RVUs

Read full article here.

Hospital and health system prognosis suggests headwinds
July 2022 | By Michael Lane

For two years, the pandemic has defined the hospital business—for good and bad. Downsides have included depressed volumes of elective procedures, which have yet to fully recover. Upsides have featured billions of dollars in federal support and access to low-cost, readily available capital. Federal funding is now waning, hospitals and health systems may have to pay back the funds they received, and low interest rates may soon be a distant memory. Add increasing costs for labor and supplies, and the financial health of many hospital and health systems may come into question.

Read full article here.

In the pandemic’s latest phase, strategic issues for healthcare providers include labor, inflation and value-based payment
May 12, 2022 | By Nick Hut

Some smaller healthcare providers soon might find themselves with no other option but to combine with a bigger entity, according to an industry financial analyst.
In contrast, “The large insurers and large provider groups have weathered the storm” of the pandemic, said Ricky Goldwasser, managing director with Morgan Stanley.

The divergence in outlook was highlighted during a wide-ranging webinar that was hosted in April by the Brookings Institution and featured Goldwasser and two other Wall Street-based healthcare analysts. From a provider perspective, here are four big takeaways from the discussion.

Read full article here.

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