Outpatient PPS Rates Slashed By 4 Percent


Here's some unavoidable bad news for hospitals: The Health Care Financing Administration proposes to reduce previously announced Medicare outpatient prospective payments by 4 percent. In a notice published in the Federal Register last month, HCFA says it is obligated, under the Balanced Budget Act, to reduce hospital payments based on an analysis of Medicare data for 1996.

Not all hospitals will be affected equally. Large teaching hospitals will experience about a 9-percent cut, while rural hospitals will see reductions of about 5 percent. But, according to HCFA, it's hospitals with fewer than 50 beds, mostly in rural areas, that stand to lose the most — a near-10-percent drop. Expect HCFA to propose phasing in the new payment formula for more than 1,000 small hospitals.

And keep in mind that because of the Year 2000 problem, the outpatient prospective-payment system won't be implemented until 2000 anyway.

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to jfedder1@hfhs.org or online at http://p.rfer.us/HENRYFORDlXqAJA

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