Mountain States Health Alliance: Changing Healthcare Delivery

Wednesday, April 25, 2012
Marvin Eichorn, a speaker at the marcus evans National Healthcare CFO Summit Spring 2012, on changing the business model of healthcare.

New York, Apr 25, 2012 - (ACN Newswire) - Times will only get harder for healthcare Chief Financial Officers (CFOs) when they will begin operating in a Fee-For-Service (FFS) environment, as all services will be paid for separately, says Marvin Eichorn, Senior Vice President and Chief Financial Officer, Mountain States Health Alliance. "To create an affordable healthcare system, we must work together to change healthcare delivery," he adds.

A speaker at the upcoming marcus evans National Healthcare CFO Summit Spring 2012, taking place in Hollywood, Florida, April 26-28, Eichorn discusses what healthcare professionals can do to ensure efficiency and move towards an improved healthcare system.

- How can healthcare CFOs effectively balance the quality of care and costs in today's economic environment?

We are looking at having to operate in an FFS environment which will be difficult as all services will become unbundled and paid for separately. Healthcare CFOs must work towards changing healthcare delivery in the long-term; in the meantime, there are several other efforts that they can undertake to ensure efficiency.

Hospitals are focused on reducing and eliminating as much as they can, but that is not the solution. By consolidating in specific areas, we havehad phenomenal success in reducing our supplies expense by eight per cent. By implementing real-time software, CFOs can better understand staffing on an hour-by-hour basis and reduce excess staffing where the volume does not support it.

There aremajor efforts underway by the US government and commercial payers to change the business model of healthcare, which will hopefully bend the cost curve. All healthcare professionals understand that something must be done to lower costs because the current system is unsustainable.

- What payment models will help maximize reimbursement for services provided?

There are two payment models that could potentially increase revenue: the shared-savings and the global/partial capitation models.

The federal government is trying to achieve a shared-savings model that supports and rewards those who improve care and lower costs. If a healthcare provider reduces total healthcare spending for its patients below the level that the payer expects,the provider will be rewarded with a portion of the savings. The result is that the payer will be spending less than usual and the provider will receive more revenue than usual.

Capitation involves a Health Maintenance Organization (HMO) payinga fixed sum per person for a certain period of time, typically one year. If that plan is managed well and there is money left over at the end of the year, then the HMO will profit. If not, they will have to deal with a loss.

- What long-term strategies could you share with healthcare CFOs?

Develop a broad set of skills and continue to work to enhance and develop those even further, because there has never been a more challenging time in the healthcare industry.

About the National Healthcare CFO Summit Spring 2012

This unique forum will take place at The Westin Diplomat Resort & Spa, Hollywood, Florida, April 26-28, 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on strategies for improving the revenue cycle, preparing for healthcare reform, and being in a position to be able to take advantage of the impending changes in the healthcare system. For more information please send an email to or visit the event website at

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