MedeAnalytics' Ken Perez Puts Spotlight on "Healthcare Fiscal Cliffs" at Nashville Patient Financial Services Executive Networking Forum

Presentation provides "window into Washington" for executives from some of the nation's largest health systems

Aug 08, 2012, 11:00 ET from MedeAnalytics

NASHVILLE, Tenn., Aug. 8, 2012 /PRNewswire/ -- With the recent Supreme Court ruling on the Affordable Care Act behind us, and all eyes on the forthcoming presidential election, now is not the time for complacency, MedeAnalytics' director of healthcare policy and senior vice president of marketing, Ken Perez, today told executives attending the Nashville Patient Financial Services Executive Networking Forum at Community Health Systems' headquarters in Franklin, Tenn. "While the national conversation will focus on the overarching fiscal cliff threatening the nation, our healthcare system is facing a number of fiscal cliffs as well," he said. "We need to be aware of these pending challenges, and plan as best we can to meet them." MedeAnalytics is a leading provider of healthcare performance management solutions.


In his presentation, "A Window into Washington: Ongoing Legislative Issues and Their Implications for Hospitals," Perez identified three primary areas of concern:

1.The Supreme Court's ruling on the health reform law. "Hospitals should proceed full steam ahead, but be aware of the possibility of a partial repeal, depending on the outcome of the 2012 presidential and congressional elections," he said.

2. The sustainable growth rate (SGR) and the so-called "doc fix." "A permanent fix—whenever it ultimately becomes a reality—will impose costly years of reckoning," he cautioned. "Hospitals may be required to fund a portion of a possible replacement of the SGR."

3. The Budget Control Act of 2011 or the "debt deal." "Under sequestration, Medicare faces a two-percent reduction, but hospitals could bear a disproportionate share of the cuts," said Perez.

"Each of these three legislative areas could pose a significant threat to hospital finances for many years," Perez told the audience. "It's important for hospitals to understand, monitor and take steps to mitigate the likely adverse effects of potential legislative developments."

Perez concluded his presentation by sharing a number of recommendations for hospitals. These include: 1) monitoring closely legislative developments in these areas; 2) engaging in scenario planning; 3) acknowledging the inexorable trend toward performance-based reimbursement; 4) complying with and pursuing, as appropriate, the Affordable Care Act's healthcare delivery reform programs, such as accountable care organizations, since it is less likely, with historical Republican support for a number of them, that they will be repealed; and 5) putting in place the key technology building blocks of electronic health records, health information exchange, and data analytics. "In spite of the phenomenal level of uncertainty right now, hospitals would be well advised to take action now to cut costs and improve care delivery, as those fundamental objectives will remain valid, no matter what transpires in Washington," he said.

MedeAnalytics Resource Centers
As a service to the healthcare industry, MedeAnalytics has created a number of resource centers designed to contribute to the conversation about significant healthcare delivery issues and their solutions. These resource centers include: Supreme Court Review of Health Reform, Sustainable Growth Rate, Medicare Zero™(an analytical approach to improve Medicare margins to breakeven or better), Value-Based Purchasing, ICD-10, Accountable Care Organizations, Medicaid Managed Care, and more.

About MedeAnalytics
Founded in 1994, MedeAnalytics delivers performance management solutions across the healthcare system—including hospitals, physician practices and payers—to ensure accountability and improve financial, operational and clinical outcomes. For more information, visit

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