Sarah Kliff / The New York Times
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Discussion
The biggest challenge facing hospitals right now isn't the lost revenue in recent months (which is, by all means, a significant challenge on its own).
— Sarah Kliff (@sarahkliff) May 15, 2020
The biggest challenge is a shift in the insurance landscape, that is already underway. A thread (1/9):
Bonus tweet: We've asked hospitals to run themselves as businesses.
— Sarah Kliff (@sarahkliff) May 15, 2020
We don't do that with our fire departments, or our electric grids.
A lot of what is playing out right now in health care is a direct consequence of that policy decision. (10/9)
Even as we discipline the excessive prices in American health care, we must address Medicaid’s low reimbursement rates, late payments+other poor practices that make it an undesirable payer. Everyone understands that this is a huge problem. Bipartisan failure w/huge consequences https://t.co/lESvmmzY0D
— Harold Pollack (@haroldpollack) May 15, 2020
Worth noting that:
— Dan O'Neill (@dp_oneill) May 15, 2020
– So far, most for-profit hospital execs sound pretty sanguine about payer mix shifts
– In the last recession, as Medicaid jumped as a % of hospital revenue (as mentioned below), revenue growth continued apace, and hospital operating margins barely dipped https://t.co/BqoZz2iik2
It's depressing to see how much hospital finances depend on lucrative elective surgeries and procedures. Joint replacements, for instance, are huge profit centers. Hospitals make a lot less treating #COVID19 patients, even the ones in ICUs, than on elective surgery. https://t.co/SaDkkMyzHX
— David Gorski, MD, PhD (@gorskon) May 15, 2020