Health care continues to be under the microscope from practitioners, policymakers, insurers and employers. Rising health insurance costs, Medicare/Medicaid issues, and stricter regulations and legislative policies, along with increasing demands for providing the highest-quality care, are tough issues health care organizations face. You can rely on the insights of our industry specialists, who have a broad range of experience assisting clients with the complexities of these and other issues, to identify strategies for helping you save time, money and resources.
Grant Thornton's business advisory, tax and audit professionals have extensive experience serving a broad spectrum of growth-oriented health care organizations. Let our professionals help you take full advantage of profitability opportunities, minimize tax obligations, and maintain compliance with a broad range of regulatory requirements.
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Grant Thornton assists health care company facing lower revenues reduce its operating costs while maintaining quality patient care.
Situation: With increasing government regulation in home health care and expected reductions in Medicare benefit reimbursement, the organization was anticipating a margin squeeze in the next fiscal year and beyond. It began to consider how it would be able to maintain the quality of service delivery in the face of lower revenues and higher operating costs. The company turned to us to help them find at least $20 million in annual operational savings starting in fiscal year 2012, without sacrificing service and clinical quality.
Result: After extensive analysis of the company’s financial and operating processes, including operating site reviews and benchmarking, our team of health care professionals made nine recommendations. Many of the recommendations were focused on using technology to eliminate manual processes and reducing non-value-added activities . The recommendations are projected to save the company approximately $29 million over the next two transitional years, and in excess of $30 million annually thereafter, greatly exceeding management's expectations.
Coming together as providers and business partners, health care systems and physicians are forming ancillary joint ventures to offer efficiencies in patient care. There are considerations of controls, compensation and allocation, and the nonprofit aspect of the health care system must be maintained. It can mean a delicate balance of achieving cost savings but also keeping intact the mission and structure of the health care system. Two cases that came before the IRS are described, along with their opposite rulings.
The IRS has issued proposed regulations (REG-118315-12) for implementing the health insurance industry’s annual fee scheduled to take effect in 2014. The industrywide fee was enacted as part of the 2010 health care reform legislation; the fee is allocated among insurers based on market share.
In this issue of PhysicianRx, Bob Wilson, managing director in Grant Thornton's Health Care Business Advisory Practice, outlines four essential principles that have proven to help achieve success for an organization getting into the physician practice ownership and management business.
Sharing information with cloud providers, consultants, business process outsourcers, third party transaction processors, and other business associates is now standard practice in the business world - but when data is moved out of an organization's protected infrastructure, a certain degree of control is lost. Jan Hertzberg, Managing Director in Grant Thornton's Business Advisory Services practice, examines the inherent risks of using a third-party vendor for key business functions as well as how your organization can protect itself.
Health care reform, shrinking reimbursements, accountable care, electronic health records, new technologies, and ever-growing scrutiny from regulators are collectively transforming health care as we know it. Adapting to these changes demands a renewed focus on governance structures and processes. This new study, Governance in Large Nonprofit Health Systems: Current Profile and Emerging Patterns, co-sponsored by Grant Thornton and led by Lawrence Prybil, professor and associate dean, College of Public Health, University of Kentucky, examines the governance structures and practices of 14 of the largest and most well-known health care systems.
A wave of high-profile bankruptcies has swept the continuing care retirement community (CCRC) industry, leaving many CCRC operators and lenders with new uncertainties about the future. Scott Davis, partner in Grant Thornton's Corporate Advisory & Restructuring Services practice, and Paul Melville, Principal in Grant Thornton's Corporate Advisory and Restructuring Services practice, have provided considerations for CCRC operators and lenders in situations of distress.