Healthcare Reform

Healthcare Reform

With the passage of the Patient Protection and Affordable Care Act (PPACA) in March 2010, providers have new mandates to follow and financial risks to mitigate.

Implementing regulations will require significant process improvements combined with innovative technologies. By improving their business practices, health providers can lessen the risk of reimbursement reduction, moderate the cost of making improvements, and help strengthen patient outcomes. Three core areas need to be addressed to accomplish the legislative requirements.

Regulatory oversight

The Recovery Audit Contractor (RAC) program will expand to include not only additional classes of Medicare benefits but also state Medicaid programs. To successfully handle the expanded RAC program, providers must overcome challenges related to the management of complex processes and the risk of missed deadlines or incomplete evidence. In addition, providers can use the analysis of past audits to help avoid future compliance issues. A RAC audit management solution from Microsoft can help hospitals:

  • Enhance audit teams’ ability to manage complex tasks.
  • Improve compliance with business-performance guidelines.
  • Centralize the data-collection process.
  • Help strengthen future audit results.
  • Enable audit teams and managers to work in a collaborative environment.

Delivery system reform

Health reform has linked readmissions and reimbursement, making patient readmissions an even more important risk- management and revenue- protection action. To decrease readmission rates and help avoid reimbursement consequences, hospitals must actively oversee patients after they have been discharged, identify patients who are at risk in the home setting, and manage self-reported patient data. A chronic condition management solution from Microsoft can help hospitals:

  • Use integrated data collected by staff, line-of-business applications, and patients to determine when to offer proactive care.
  • Increase productivity by reducing the time and staff necessary to administer patient-outreach programs.
  • Save time and reduce the potential for human error by standardizing processes and moving paper-based processes online.
  • Provide better service, strengthen communications, and improve responsiveness by sharing patient information between systems.

Quality improvement

Hospitals have been reporting various quality data, such as Core Measures and Hospital-Acquired Infections, to government agencies for several years. Under PPACA, reimbursement will now be based on actual performance on those quality measures. This means clinical data needs to be collected, integrated, analyzed, and reported in near-real time, so as to allow caregivers to take meaningful  actions to produce quality outcomes. In addition, reform regulations now require non-acute facilities to start the quality reporting and improvement process.  A health performance management solution from Microsoft can help providers:

  • Improve outcomes by promoting a self-service business intelligence (BI) environment for key clinical decision-makers.
  • Improve coordination and support between care teams by providing clinical managers with intuitive tools to analyze quality-performance metrics.
  • Provide clinical workers with integrated analytics to help them take action on performance data in real time.
  • Help users collect, analyze, manage, and report on data from multiple systems, applications, teams, and departments.
  • Provide consolidated access to patient information through a single, unified view.
  • Use scorecards, dashboards, and key performance indicators to improve accountability and alignment for quality across the organization.
Although there are many impacts on healthcare providers contained in the health reform legislation, these changes represent significant financial risk:
 

Value-based purchasing (Section 3001)

The legislation establishes a value-based purchasing (VBP) program to pay hospitals for their actual performance on quality measures rather than just the reporting of those measures.
 

Quality reporting for non-acute facilities (Sections 3004 and 10322)

The law requires inpatient psychiatric facilities (IPFs), inpatient rehabilitation facilities (IRFs), long-term care hospitals (LTCHs), and hospices to publish quality measures for reporting. Providers that fail to report these measures will have their market basket updates reduced.
 

Readmission rates (Section 3025)

Hospitals with higher-than-expected readmissions rates will experience decreased Medicare payments.
 

Hospital-acquired infections (Section 3008)

Hospitals in the top quartile of national risk-adjusted hospital-acquired condition rates will receive decreased Medicare payments.
 

Expansion of RAC audits (Section 6411)

The new law requires each state Medicaid program to contract with one or more RACs. The law also expands the RAC program to include audits of Medicare parts C and D and requires RACs to ensure that Medicare Advantage Plans and Prescription Drug Plans implement anti-fraud plans.
 

Microsoft solutions

Read about these Microsoft solutions for healthcare reform.  
  • Performance Management

    Microsoft technologies can make it easier for people at all levels of your healthcare organization to make financial, operational, and clinical decisions that support your overall organizational goals.

  • Recovery Audit Contractors Management

    A RAC Audit Management solution from Microsoft can help you meet expanded RAC audit mandates using a cost-effective and interoperable solution.