Cost Controls Head PricewaterhouseCoopers’ List of Top Issues for 2010

Efforts to reduce healthcare costs are at the top of a new list of the biggest issues for the health industry in 2010 from PricewaterhouseCoopers’ Health Research Institute, according to a release from PricewaterhouseCoopers.

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Here is the list.

1. Redoubled efforts to cut costs. Hospitals, physicians and other providers will look for savings in operations and supply chains, renegotiating purchasing agreements and contracts with vendors on items such as medical devices and pharmaceuticals.

2. First effects of health reform. Healthcare organizations will spend 2010 absorbing the potential first wave of regulatory changes, such as insurance market and payment reforms, new agencies and grant programs and pressures on reimbursement and pricing.

3. New federal rewards and penalties. Physicians who act quickly to take advantage of government incentives to adopt electronic medical records and e-prescribing will reap rewards from government programs and those who do not will face potential penalties later.

4. Greater focus on fraud and billing errors.
The Obama administration has boosted its fraud and abuse budget for 2010 by 50 percent, hoping to lop $1.6 billion off the cost of health reform. And CMS’ Recovery Audit Contractor (RAC) will be getting into full swing, rooting out Medicare overpayments and demanding restitution.

5. Rise of healthcare technology.
The 2009 stimulus package provides huge funding increases for broadband and healthcare IT. Beginning in 2010, the convergence of healthcare with technology and telecommunications companies will change regulatory rules, how providers compete and the way healthcare is delivered.

6. Pharma collaborates with providers. Pharmaceutical and life science companies will shift focus to promoting prevention and patient outcomes. They will address education, clinical effectiveness, product safety, wellness and compliance.

7. Physicians align with health systems. The number of hospitals with employed physicians has nearly doubled since 1994 and the trend will continue as physicians seek greater stability and electronic connectivity. New models such as accountable care organizations will force providers to re-evaluate relationships, operations, contracting with payors and funding models.

8. Emergence of alternative care delivery models.
Alternative models of care outside physicians’ offices and hospitals will blossom, such as work-site and retail health clinics, home health services and use of e-mail and telemedicine.

9. Emphasis on readiness for public health outbreaks.
The H1N1 virus is forcing healthcare organizations to re-evaluate readiness for a major public health outbreak, such as reassesses vaccine supplies, communication, bed capacity and sick leave policies.

10. Community leaders take up prevention and wellness. Aided by increased federal funding, community leaders will work with providers and employers to develop evidence-based clinical measures and prevention and wellness strategies to deal with chronic diseases.

Read PricewaterhouseCoopers’ release on trends for 2010.
 

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