Hospital Executives and the Affordable Care Act

Of hospital executives surveyed, 65% indicated that by 2020, they believe the wellness care program as a whole will be somewhat or significantly better than it is today. And when they were asked about their own organizations, the positive outlook was even more impressive. Fully 93% expected that the quality of care provided by their own wellness program would improve. This is probably related to initiatives to reduce hospital obtained conditions, medicine mistakes and needless re-admissions, as motivated by financial penalties in the Affordable Care Act (ACA).

On price control, there was similar optimism: 91% expected developments on analysis of price within their own wellness program by 2020. A large proportion, 85%, expected their company to have decreased it’s per individual working expenses by the end of the decade. Overall, the common working reduction expected was 11.7%, with a range from 0% to 30%. Most professionals believe they could save an even higher amount if Congress introduced regulation to speed up the move away from fee-for-service payment toward models like included payments. In such a case, the hospital executives estimated regular yearly benefits of 16.0%, which, if used across the wellness care program, would amount to benefits of nearly $100 billion dollars per year.

How can such benefits be achieved? Hospital executives anticipate three strategies rising to the top: decreasing the number of hospitalizations (54%), decreasing the number of re-admissions (49%) and decreasing the number of E.R. trips (39%). Other likely resources included decreasing expenses for medical devices (36%) and medicine (27%), along with enhancing back-office performance (23%). These leaders believe that benefits can be found through a mixture of better management performance, price discount rates and decreased dependency on hospital services.