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Transition in Funding Improves Value
this transition in how health care is funded, reimbursed, and covered has been underway for years. now, several factors, including implementation of the federal affordable
Care act (aCa), are forcing hospital systems
to radically rethink their financial assumptions.
The Centers for Medicare and Medicaid Services (CMS), the federal o ce that administers funding for both programs, is updating its reimbursement policies for 2016 to boost value-based activities.
These include reducing hospital readmissions, improving patient satisfaction and using new patient models like bundled payments and patient-centered medical homes. Commercial insurers are following this trend toward transformation in how health care providers are paid. Medicare funding remains the biggest issue facing hospital budgets today, primarily due to its status as the biggest player on the eld. Roughly half of the average American hospital’s revenues come through Medicare now, a share that has risen over the past decade. While some health care systems in the past were able to
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2015 ANNUAL REPORT