Healthcare CFO Report

When it comes to healthcare financial and payment matters, value-based care, and policy here is what is being reported and talked about. For more on Healthcare CFOs read our previous reports and to keep your finger on the business news pulse, check out our latest Health IT Business News.

To Listen

Harlow on Healthcare: Host David Harlow (@healthblawg) talks with Jeanne Pinder (@JPinderHealth), CEO of Clear Health Costs (@chcosts), who shines a light on opaque healthcare services pricing, partnering with news organizations around the country.

In the News

Allscripts to Pay $145 Million for Practice Fusion EHR Investigation
Allscripts (@Allscripts) is working with the Department of Justice to pay $145 million in a preliminary settlement in response to an attack that exposed patient records which were thought to be safe in the cloud. They were in violation of HIPAA, the HITECH Act’s EHR incentive program, and the Anti-Kickback Statute related to Practice Fusion – which was the company acquired by Allscripts in 2018. This settlement will resolve both companies of all criminal and civil liability related to the investigation surrounding them both.

Community Health Systems Completes Divestitures of Hospitals Located in Davenport and Lake Wales, Florida
Community Health Systems, Inc. announced that affiliates of the Company have completed the divestitures of 193-bed Heart of Florida Regional Medical Center in Davenport, Fla., and 160-bed Lake Wales Medical Center in Lake Wales, Fla., along with their respective assets, physician clinic operations and outpatient services to affiliates of AdventHealth. The transactions are effective September 1, 2019.

Springfield Hospital’s Survival ‘Virtually Impossible’ without Merger
VTDigger reports that the interim CEO of the financially strapped Springfield Hospital says its financial structure is unsustainable and its survival will be “virtually impossible” unless it merges with other hospitals in its region.

UNC Hospitals’ accreditation is at risk after problems found at facilities
The News and Observer reports that UNC Hospitals have been placed on a “preliminary denial of accreditation status” after a national accrediting agency found several problems during a recent review.

Finance

Cigna Seeks Sale of Group Benefits Insurance Business -Sources
The Financial Post reports U.S. health insurer Cigna Corp (@Cigna) is exploring a sale of its group benefits insurance business, which could be valued at as much as $6 billion, four people familiar with the matter said on Tuesday.

Healthcare’s Leading Financial Challenges and Opportunities in 2019
Chase JP Morgan reports that faced with slim margins and rising costs, the healthcare industry is looking to blockchain, data analytics and innovation to help drive savings and unlock new revenue.

2019 Midyear Digital Health Market Update: Exits are heating up
Rock Health (@rock_health) reports that $4.2B was invested in digital health through the first half of 2019. The sector continues to experience healthy growth with no telltale signs of an investment bubble.

Digital health companies see new ‘exit’ strategy with IPOs
Modern Healthcare reports that the digital health companies going public this year don’t feel like startups. They are established companies led by seasoned executives, said Pam Arlotto, president and CEO of healthcare consultancy Maestro Strategies.

2019 Medical Group Compensation and Productivity Survey
Now in its 32nd year, AMGA’s 2019 Medical Group Compensation and Productivity Survey focuses on the individual compensation and production of experienced physicians and other clinical staff, starting salaries of new residents and experienced new hires, as well as salaries for department chairs, nurse practitioners, and physician assistants.

Home-health aides are among the lowest-paid jobs in every U.S. state — yet also one of the fastest growing
MarketWatch reports that home-health and personal-care aides were among the lowest paid, fastest-growing in every U.S. state and Washington, D.C. Only one state (Michigan) didn’t list home-health aide or personal-care aide as among the lowest paid, most in-demand jobs. (It did, however, list physical-therapy aides, in addition to nonfarm animal caretakers, and meat, poultry and fish cutters and trimmers.)

Patient Financial Matters

UConn Health research shows tens of thousands of CT residents faced medical-debt lawsuits
According to Hartford Business debt-collection lawsuits against Connecticut patients with overdue medical bills have been on the decline in recent years, but hospitals and other in-state health providers are still suing at a healthy clip.

Policy

Lt. Governor Geoff Duncan Announces Task Force on Healthcare Access and Cost
Lt. Governor Geoff Duncan announced the Task Force on Healthcare Access and Cost. The group will pinpoint improvements that can be made to tackle the cost and access burdens to healthcare across Georgia. Specially, the Task Force will evaluate: 1) price transparency and other free market solutions; 2) data and technology utilization; and 3) employer innovation. Duncan will chair the group, which will hold three meetings before the start of the legislative session in January.

CMS Announces New Enforcement Authorities to Reduce Criminal Behavior in Medicare, Medicaid, and CHIP
The Centers for Medicare & Medicaid Services (@CMSGov) issued a final rule that strengthens the agency’s ability to stop fraud before it happens by keeping unscrupulous providers out of our federal health insurance programs. This first-of-its-kind action – stopping fraudsters before they get paid – marks a critical step forward in CMS’ longstanding fight to end “pay and chase” in federal healthcare fraud efforts and replace it with smart, effective and proactive measures. Today’s action is part of the Trump Administration’s ongoing effort to safeguard taxpayer dollars and protect the core integrity of the critical Medicare and Medicaid programs that millions rely on.