June, 2014

Catholic Health Initiatives CEO Kevin Lofton explains the system's strategy for acquiring hospitals and health plans to build a critical mass in its markets and the resources and expertise to manage population health.

Under the deal, GE will work with Sanford to deliver $44.6 million in operational savings over 10 years by optimizing clinical assets and increasing efficiencies, according to the vendor. Productivity will be increased by integrating multiple biomedical engineering and radiology departments, several fleets of clinical equipment, and workflow for all staff, GE said. Sanford Health includes 39 hospitals and 225 clinic locations.

A little-known provision in the Patient Protection and Affordable Care Act could leave physicians holding the bag when patients don't pay their insurance premiums, yet doctors are obligated to provide care during a grace period.

Banner will spend at least $500 million toward capital projects in the next five years, and it will pay $300 million to establish an academic endowment. UAHN’s long-term debt, totaling about $146 million, will also be paid off.

Hospitals already struggling with lower revenues and volumes are found to be charging more for almost everything. A recent study of patient prices for standard blood tests, cancer screening and other services varied widely and were sharply higher, on average, than prices charged by ambulatory clinics and independent doctor. This one study alone uncovered whopping price disparities for care that accounted for $68 million in claims that year, including blood work to test cholesterol levels, colonoscopies and physical therapy. Payers and CMS have taken note – how will hospitals survive when they lose this money?