Winter 2012

Here’s What’s Happening! SPRING

2013

Vol 2, Page 1

Lead, Follow, or Move Out of the Way…

Sounds like good advice – whether you are flying down Interstate-95 to make it home in time for dinner or trying to anticipate the future of Health Care reimbursement in Maryland. In the past, it has always come naturally to University of Maryland Medical System to take the lead and for Finance to be the trailblazers. It is no coincidence that Finance was the first discipline to develop and implement the shared services concept in order to realize the efficiencies and savings from being a system. And each of you has been an integral part of making it such a success that others within the System have followed your lead, whether it be Information Technology, Supply Chain, or (very soon) Human Resources. As we embark upon yet another challenge to “do more with less”, your expertise and continued diligence will once again be called upon to lead the way.

Maryland is an All-Payor state, which means the government payors pay regulated rates on par with all other insurance companies. As a result, Maryland receives an additional $1.5 billion in payments from Medicare and Medicaid, as long as our average cost per inpatient admission grows at a lesser rate than the national average. Using inpatient costs as the measurement criteria made sense when the program was implemented in the 1970s. Over the 40 years since then, however, a fundamental change in healthcare delivery from inpatient to outpatient services has adversely impacted the Medicare Waiver (the All-Payor test).

See LEAD, FOLLOW OR MOVE, page two

Message from the Vice President and Chief Financial Officer of Civista Health System

Staff news…

FSS

Moving in...

Please welcome the following new hires:

UMMS Brittany Burns – Financial Reporting Eutoby Jackson – Payroll

Shawnita Jenkins – Reimbursement Patricia Richard – Reimbursement

Civista Health System Edward Appiah – Decision Support Blood drive…

Congratulations to Amy Myers and her husband Greg on the birth of their son!

Erik Boas

Jackson “Jack” Leonard was born on February 12th at 1:58pm and weighed 8 lbs 12 ozs!

Moving up...

Please congratulate Chris Miller on his promotion to Director, Revenue Cycle Initiatives

Please plan on donating blood at one of the following blood drives:

Paca/Pratt Building May 2nd – 8:00am – 2:00pm June 27th – 8:00am – 2:00pmGudelsky Hallway at UMMC June 4th – 8:00am – 8:00pm June 5th – 8:00am – 8:00pm

Thought for the day…

“Good things come to those who WAIT. Better things come to those who TRY. Best things come to those who BELIEVE in their efforts.”

Author Unknown

Newsletter items needed! Please send items of interest to lnolker@umm.edu!

Winter 2012

Here’s What’s Happening! SPRINg

2013

LEAD, FOLLOW OR MOVEContinued from page one

As a result, the State of Maryland has submitted a Medicare Waiver application to CMS (Center for Medicare & Medicaid Services), which introduces the concept of using per-capita expenditures as the basis for measuring (and controlling) the increase in healthcare costs. The expectation is that this will change the emphasis from volume growth, i.e. every year hospitals do more of the same things in order to maintain the “bottom line”, to a holistic approach for controlling healthcare costs, encompassing the full spectrum of primary care, preventive, acute, post acute, and rehab services.

The waiver application calls for an initial 5-year phase that will focus on controlling the growth in per-capita hospital expenditures, as these are already regulated by the HSCRC. The controls include a fixed (“hard”) 3% ceiling on revenue growth and a significant reduction in the incremental revenues we will receive for volume growth. The variable cost factor will likely be reduced by 60% versus the 85% we receive now. This initial phase will be followed by a second phase, starting in year 6, which implements a full scale “population- based” measurement of growth in per-capita healthcare expenditures for the State of Maryland, broadening the involved/responsible parties to all healthcare facilities and providers.

As you can see, we will not be lacking in challenges in the coming year(s), as we deal with flat revenues and growing inflationary pressures on the expenses. I look forward to working with all of you as we meet those challenges and continue our past practice of proposing and implementing innovative ideas.

LEAD THE WAY, FSS TEAM

Sincerely,

Erik Boas Vice President & Chief Financial Officer – Civista Health System

The O’s are back in town…

FSS

Vol 2, Page 2

APRIL

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Ravenstown…

Congratulations to the Baltimore Ravens for their Superbowl XLVII win over the San Francisco 49ers!

Baltimore Sports

TAKE

ME

OUT

TO

THE

BALL

GAME!