November 2009

Using Cash Flow Projections
Attaining a steady, positive cash flow should be a priority for your practice. By effectively managing cash flow, you can help your practice grow and thrive through all types of economic conditions. A critical tool in managing cash flow is the cash flow projection. Simply put, this is a forecast of your practice's cash receipts and expenditures on a weekly or monthly basis. Read more...

Medical Briefs

Good News for Radiation Oncology - In early November, Medicare "undid" some serious cuts that were proposed earlier this year. The American Society for Radiation Oncology (ASTRO) provided a good summary in their press release.

CMS Releases Final 2010 Medicare Physician Fee Schedule - On October 30, the Centers for Medicare & Medicaid Services (CMS) released the 2010 final Medicare physician fee schedule. The 21% cut is not fixed yet, but it's getting closer and we DO expect it to get fixed. Imaging cuts due to increasing utilization assumption are to be phased in now over 4 years. Go to the CMS press release for complete information. The Senate voted on bringing their bill to the floor for debate, which also includes a fix, but debate will not start until after Thanksgiving. On November 19, the House of Representatives voted 243-183 to approve the Medicare Physician Payment Reform Act (HR 3961), which would permanently revamp the Medicare physician payment formula. Combining the House healthcare reform bill with this Medicare physician payment change would raise the deficit by $89 billion over 10 years, according to a Congressional Budget Office analysis released recently.

UnitedHealthcare Expands Radiology Notification Program - MGMA reports that beginning February 15, 2010, UnitedHealthcare will include all network physicians (including previously exempt “premium quality and cost efficiency”-designated physicians) in its radiology notification program. This program requires prior notification for CT scans, MRIs, MRAs, PET scans and nuclear medicine studies, including nuclear cardiology. The change amends page 31 of the UnitedHealthcare Physician, Health Care Professional, Facility and Ancillary Provider 2009 Administrative Guide.

Availability of Doctors - According to the U.S. Census Bureau, an average of 267 doctors were available per 100,000 individuals in the U.S. in 2006. Massachusetts had the greatest concentration of doctors, at 462 per 100,000 population, while Idaho ranked lowest with only 169 doctors serving each 100,000 state residents.

Medical School Enrollment Estimates - The Association of American Medical Colleges’ annual survey on medical school expansion indicates that first-year enrollment in U.S. medical schools is projected to grow 21% by 2012 (compared with 2002’s level). The survey also found that more than 86% of existing medical schools have either expanded the number of enrolled first-year students or plan to do so within the next five years.

Return Hospital Visits - According to a study in the New England Journal of Medicine, almost 20% of all Medicare patients admitted to the hospital are readmitted within a month of being discharged, costing an estimated $17 billion in 2004.

Somerset Health Care Team News

Somerset Health Care Roundtable - December 3, 2009
Our next Health Care Roundtable will be Thursday, December 3, beginning at 11:30 a.m. Eastern. Allen Murphy of NextGen Healthcare will present "Electronic Health Records Today: How to Cost Justify, Implement and Earn ARRA Dollars." Cathy Weaver of Somerset will present "2009 Health Care Review." You can attend either in-person or via webinar--be sure to register now.

Tell Us How We Are Doing and You May Win Pacers Tickets - If you are a Somerset client, please take our survey concerning the services we have provided to you by December 14, and you will be entered into our drawing for a pair of tickets to the Pacers vs. Atlanta on Saturday, December 26. Take survey now.

Health Care Commentaries is provided by Somerset’s Health Care Team for our clients and other interested persons upon request. Since technical information is presented in generalized fashion, no final conclusion on these topics should be made without further review. For additional information on the issues discussed, please contact a member of our Health Care Team. This document is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer.