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How can hospitals get ready for Medicare cuts?

Reimbursement cuts that will result from the implementation of the Affordable Care Act (ACA) will have a significant impact on hospitals.  These across-the-board reductions in Medicare payments could result in decreases of an estimated $6.5 million per hospital per year — for the next 10 years.  The author discusses a number of possible options for providers in dealing with the change in the financial environment:

  • Stop taking new Medicare patients — or Medicare patients at all
  • Layoff employees
  • Tighten up operational efficiency
  • Take advantage of government subsidies available for purchase of electronic health records

Source: Perez, K.  Preparing for ACA-driven Medicare cuts.  HFM. Healthcare Financial Management;67(1):40-43, Jan. 2013.  Click here for publisher’s website: http://www.hfma.org/Content.aspx?id=14873  Posted by AHA Resource Center, (312) 422-2050, rc@aha.org

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