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April 22, 2016

A Budget Next Week?
Barb Fanning
Director, Government Affairs

We have reported for the past few weeks that the Legislature would be passing a budget “next week," but this time we mean it! Not really, but the latest rumor surrounding the FY 2017 budget battle is that the House and Senate are finally close enough on a budget deal to introduce bills on Monday, and wrap up passage on Wednesday. If that were to happen, Thursday and Friday of next week would be used to final-approve the pending bills, and they would close up shop shortly after. Details about what is included in the alleged budget are not yet available, but we continue to keep a close watch.

February Financial Results 
Jim Haynes  
Senior Vice President and Chief Operating Officer

For the first two months of 2016  hospital operating margins  have increased over prior years. Year-to-date operating margins have increased to 6.4 percent.  In 2015 and 2014 for the first two months, they were 3.4 percent and 3.3 percent respectively. In addition the related uncompensated care percentage continues to drop. Year to date it is a very low 2.9 percent well below the 4.8 percent in 2015 and 6.4 percent recorded in the first two months of 2014. While hospital discharges are relatively flat,  reported 2016 ED visits have increased 10 percent over 2015 and 24 percent over 2014. It is too early to state that these improvements reflect a trend, but the operating margins to date are certainly better than they were the last two years.

Drug Survey from the AHA
Shayna Diamond
Director, Community Affairs

The American Hospital Association emailed CEO's last Monday with a link to a survey regarding the increasing cost of drugs in teh inpatient hospital setting. Each hospital has a customized link. The survey deadline is May 6th. If you need assistance contact Michael Ward. 

 

CMS Delays Release of Star Ratings 
Debbie Johnston
Senior Vice President, Policy Development

The Centers for Medicare & Medicaid Services (CMS) this week announced that it will delay until at least July 2016 the release of overall hospital quality “star ratings” on its Hospital Compare website. The ratings were originally scheduled to be released April 21. The delay responds to concerns raised by the American Hospital Association, AzHHA, and others about whether the methodology provides a fair, accurate and meaningful representation of hospital performance. It also comes on the heels of a majority of Congress – 60 senators and 225 members of the House—weighing in to urge CMS to delay the release and take time to re-evaluate its methodology.

AzHHA appreciates the support of members of Arizona’s congressional delegation—Sen. John McCain and Reps. Martha McSally, Kyrsten Sinema, Matt Salmon and Raul Grijalva—who signed onto letters requesting the delay.

In conjunction with the delay, CMS:
• Invited continued feedback and questions about the star ratings methodology, and also indicated it intends to continue refining and improving the website after the ratings go live.

• Announced a 30-day preview period, beginning May 6, for hospitals to confidentially preview their data for the possible July update. The reports will be available via CMS’s QualityNet website.

• Announced it will host a National Provider Call on May 12 to explain and answer stakeholder questions about the star rating methodology.

Knowledge Increases Your Level of  Preparedness
Karen Fallquist
Education Specialist

CMS's star rating strategy strives to provide a basis for payment based on quality of care, improving care coordination, strengthen patient engagement and enhanced population health. Strategies to effectively prepare and enhance operations under value-based payment will be necessary for success. The following opportunities will help get you there!

Value-Based Care - No Single Way to Win Webinar: May 12, 2016

Getting to Population Health Webinar May: 19, 2016

Arizona Payment Reform Summit: May 23, 2016 

The Circle of Life Awards - Call for Applications 
Shayna Diamond
Director, Community Affairs 

Does your organization have an innovative palliative and end-of-life program? Make sure it gets the national recognition it deserves! The Circle of Life Awards will give top honors in 2017to up to three program or organizations. Review the application here.

Point of Pride

Next week is World Immunization Week so we are highlighting Holly Van Lew from the Phoenix Indian Medical Center. The American Pharmacists Association has selected Lieutenant Commander (LCDR) Holly Van Lew as this year's Immunization Champion Award National Winner.  LCDR Van Lew is a clinical pharmacist at Phoenix Indian Medical Center and the Director of the Pharmacy Immunization Clinic. Passionate about immunizations, Holly has become a local and national subject matter expert, leading her team to administer over 44,000 vaccines to children and adults in 2015. Read more about Holly's excellent work here.