Are Hospitals’ Finances As Dire As Their Trade Group Lobbyists Would Have Congress Believe?
Hospitals are arguing for more time to repay federal aid, but experts say many of them will be fine if everything goes according to schedule. Meanwhile, Politico looks at the role consulting firm McKinsey is playing in the distribution of CARES Act funds for hospitals.
CARES Act Medicare Loan Repayment Will Cut Reimbursement By 25%, Industry Execs Say
Hospitals are using dramatic language in their effort to convince Congress to allow more time to repay loans meant to sustain them during the pandemic—arguing, for example, that 25% of hospitals' total payments will vanish once repayment starts. But for many, especially large, well-capitalized companies, the situation isn't as dire as their trade groups would have lawmakers believe. (Bannow, 6/19)
McKinsey Helps Oversee Recovery Payouts To Former Clients
The global consulting firm McKinsey, which has been tapped by the Department of Health and Human Services to help manage and audit billions of dollars in coronavirus relief for hospitals, has worked for at least 10 hospitals and chains that have received federal recovery funds, according to tax records and other public disclosures. McKinsey was hired to help manage the program and establish audit procedures for the funds, according to the contract award, which was granted in late April and is worth $4.9 million. (Lippman and Severns, 6/20)
In other news from the health industry —
CMS Might Not Learn Much From BPCI Advanced, New Report Says
More providers are taking part in Medicare's largest bundled-payment model relative to its predecessor, but the results of the demonstration probably won't carry over to a larger or different group of providers because participants choose whether and how to participate, CMS' Center for Medicare & Medicaid Innovation said in a report Friday. According to CMMI, about 22% of eligible hospitals took part in Bundled Payments for Care Improvement Advanced during the first six months of the demonstration. That rate dropped to 13% for BPCI Advanced-eligible hospitals that participated in the earlier BPCI model. (Brady, 6/19)
Stark, Anti-Kickback Law Changes Can't Come Soon Enough, Experts Say
The COVID-19 pandemic is producing even more evidence that proposed changes to Stark Law and Anti-Kickback Statute regulations can't come soon enough. But the rule changes, which are designed to encourage better care, could be delayed, also thanks to the coronavirus outbreak. For years, the healthcare industry has warned regulators that providers are hesitant to engage in value-based arrangements or coordinate care, in part, because they're worried about running afoul of federal fraud and abuse rules. So federal officials in October proposed a wide range of changes to physician self-referral and safe harbor regulations to improve care coordination and encourage providers to take part in value-based arrangements, among other things. (Brady, 6/22)