Friday, September 20, 2019 Cleverley Uncategorized No comments
Recently, NASA verified that they are investigating what might be the first crime in space. The short version is that Anne McClain accessed her ex-wife’s bank account while stationed aboard the International Space Station. It should be noted that Ms. McClain denies any wrongdoing, but the incident has raised some interesting questions about crime in space. Specifically, what do we do about ...
Friday, September 20, 2019 Cleverley Uncategorized No comments
The No-Surprises Act, currently under consideration, would prohibit providers from balance-billing. It would also establish rates for payments from commercial health plans, based on the local market. There is a process (added on July 17) that includes a third-party arbitration process for resolving certain disagreements.  The main focus of the bill, as with other recent surprise billin...
Wednesday, September 18, 2019 Cleverley Uncategorized No comments
As many hospitals are nearing the start of their next fiscal year, we thought it would be interesting to look at pricing strategies selected by a significant national sample during the first half of 2019. Hospitals may take one of two approaches when setting prices by following either an across-the-board (ATB) price change or a strategic approach. The ATB method assumes all prices in the ch...
Thursday, September 19, 2019 Cleverley Uncategorized No comments
COLUMBUS OH, SEPTEMBER 6 2019 – The CY20 OPPS Proposed Rule contains additional information and requirements regarding hospital price transparency. There are nine areas pertaining to the proposed requirements for hospitals to make public a list of their standard charges. Some of the areas represent further clarifications or definitions of terms outlined in the FY19 IPPS Final Rule a...
Monday, August 05, 2019 Cleverley Uncategorized No comments
A challenge exists in finding accurate comparative data for bundled-payment arrangements, such as total hip replacement. Cost advantage is necessary when a business is perceived as providing the same products or services as its competitors. In the eyes of many major healthcare payers, hospital services are not perceived as differentiated and are viewed as equally substitutable. While some p...
Friday, July 12, 2019 Cleverley Uncategorized No comments
On June 24th, President Donald Trump signed an executive order intended to lower healthcare costs through improved price transparency. The focus of the order is to provide patients access to pricing information for scheduled services and the out-of-pocket costs they may incur. It aims to eliminate barriers to price and quality transparency, to increase the availability of meaningful price and ...
Thursday, June 27, 2019 Cleverley Uncategorized No comments
Version 37 incorporates changes to our MSDRG list as well as associated relative weights.  From FY 2019 to FY 2020 two (2) MSDRGs are removed and two (2) MSDRGs have been created. To what extent is Relative Weight changing from FY 2019 to FY 2020? *Data Source: CMS, FY 2019 & 2020 Table 5 *Data Source: CMS, FY 2019 & 2020 Table 5 Based on the data presented, t...
Wednesday, June 05, 2019 Cleverley Uncategorized No comments
The FY 2020 IPPS Proposed rule introduces a new approach to the hospital wage index to address payment differences between low and high wage index hospitals.  CMS proposes to increase the wage index for hospitals with a wage index value below the 25thpercentile (.8482 for FY 2020) and decrease the wage index for hospitals with a wage index value above the 75thpercentile (1.0351 for F...
Friday, April 19, 2019 Cleverley Uncategorized No comments
What is the Transparency Fifty™? This report identifies the 50 most common outpatient procedures where hospitals compete with free-standing entities. This helps hospitals who are searching for strategies to reduce prices, by focusing on procedures where they are likely to have the most competition from free-standing providers.  Cleverley + Associates first released this report ...
Tuesday, April 09, 2019 Cleverley Uncategorized No comments
Pricing is certainly a hot topic right now with the disclosure requirement becoming effective on January 1, 2019.  The Hospital Charge Index® helps hospitals understand how high or low they are relative to peers for both inpatient and outpatient charges.  The metric utilizes total claim charges and is adjusted for resource intensity and cost of living.  Because the new requirement includes...
Tuesday, March 05, 2019 Cleverley Uncategorized No comments
Simply put, a provider based department is a location where hospitals provide services to their patients that is outside of the traditional main hospital. This year, there are a few changes to how these departments are defined and billed as prescribed in the CY19 Medicare Physician Fee Schedule Final Rule. The 4 types of Provider Based Departments (PBDs) remain unchanged. On Campus ̵...
Tuesday, February 12, 2019 Cleverley Uncategorized No comments
A clear sense of current market trends, cost of care, and demonstrated efficiencies that reduce cost are essential elements of contract negotiation preparations. Negotiation leverage, in terms of hospital control, comes from several sources. The most recognized driver is market power based on geographical area or demographic factors. However, hospital/payer relationships, service offerings ...
Friday, January 25, 2019 Cleverley Uncategorized No comments
Obtaining an accurate perspective on the meaning and relative impacts of cost and payment increases in the healthcare industry depends on the specific metrics that provide the basis for the analysis. To no one’s surprise, health care was a primary political issue in the Fall midterm elections. Everyone knows that our country spends more on health care as a percentage of GDP than other dev...
Monday, January 07, 2019 Cleverley Uncategorized No comments
Earlier this month, the CMS issued another responses to frequently asked questions on its website.  Knowledge of – and access to – this latest posting have been limited, however, there is important information administrators have been learning from this latest update.  The information in this latest update were largely not part of the original final rule language, nor part of the first response...
Wednesday, November 28, 2018 Cleverley Uncategorized No comments
We had several questions following our webinar on the FY 2019 IPPS Final Rule regarding drugs and supplies. We created a matrix to help you understand the options based on billing methodology. If you’d like to watch the full webinar, you can see it here! Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)
Tuesday, October 02, 2018 Cleverley Uncategorized No comments
Equivalent discharges™, our replacement measure for “adjusted discharges,” continues to gain acceptance as the new standard for volume measurement as it isn’t influenced by pricing changes and calculates a volume value specific to inpatient and outpatient areas.  The latest research shows that positive growth occurred in all but three states/territories (HI, MD, PR).  The national average has c...
Friday, September 07, 2018 Cleverley Uncategorized No comments
CMS reports an estimated increase by 2.4 percent for FY 2019 in overall payments to hospitals paid under the IPPS. This increase is due to the applicable percentage increase and changes to policies related to MSDRGs, geographic adjustments, and outliers. National standardized amount increases by 1.85 percent. Hospitals paid under the hospital-specific rate will receive a 1.35 percent hospital u...
Thursday, September 06, 2018 Cleverley Uncategorized No comments
To what extent is Wage Index based on payment CBSA changing from FY 2018 to FY 2019? *Data Source: CMS, FY 2018 & 2019 IPPS Final Rule Impact Files, FY 2019 URSPA variable *Data Source: CMS, FY 2018 & 2019 IPPS Final Rule Impact Files, FY 2019 URSPA variable Based on the data above, the clear majority of hospitals are experiencing an increase or decrease less than 5% or no change at a...
Thursday, September 06, 2018 Cleverley Uncategorized No comments
Version 36 incorporates changes to our MSDRG list as well as associated relative weights.  From FY 2018 to FY 2019, 742MSDRGs are present in both versions. Does FY 2019 (MSDRG V36) involve any new or deleted MSDRG? It sure does! Eleven (11) MSDRGs are removed for FY 2019 and eighteen (18) MSDRGs have been created. To what extent is Relative Weight changing from FY 2018 to FY 2019?   *Data Sou...
Thursday, September 06, 2018 Cleverley Uncategorized No comments
Remove – Remove – Remove! CMS’s strategy for a holistic quality payment program, the FY 2019 IPPS Final Rule, involves several removed measures to prevent duplication across programs in which is stated as considered causing unnecessary complexity or unnecessary costs. This focus on removal is ultimately positive and will help reduce administrative burden on providers. “Regulatory re...
Thursday, October 18, 2018 Cleverley Uncategorized No comments
A Compliance Continuum for the FY19 IPPS Final Rule (CMS-1694-F) for Requirements for Hospitals to Make Public a List of Their Standard Charges via the Internet **Updated October 2018 to reflect CMS responses to frequently asked questions Provided by: Cleverley + Associates BACKGROUND The FY19 IPPS Final Rule contains a section for requirements for hospitals to make public a list of their st...
Wednesday, August 22, 2018 Cleverley Uncategorized No comments
Pricing transparency has been the topic and trend in healthcare for the past few years.  The industry has responded with numerous research articles, solutions and products.  Hospitals have made prices more publicly available, reduced charges and restructured pricing methodology.  However, with pricing transparency being all the buzz, where has that left the focus on costs in healthcare? Recentl...
Tuesday, August 07, 2018 Cleverley Uncategorized No comments
The state of Nevada has continued its ascent to the leading cost position in the nation as it was ranked 6th lowest three years ago, 2nd two years ago, and first in the current national study.  Not surprisingly, the Las Vegas metro area was among the five lowest cost metro areas.  Some might be surprised, though, that two California metro areas lead the way for cost position.  It’s important t...
Wednesday, July 11, 2018 Cleverley Uncategorized No comments
  The chargemaster, or CDM (charge description master), is an integral component of hospital financial strategy, reimbursement, and the revenue cycle. It is important to understand the complexities of the CDM as well as the consequences of even seemingly simple changes. Throughout the year, this “menu” of hospital service prices changes to reflect minor adjustments. Larger modifications a...
Wednesday, June 06, 2018 Cleverley Uncategorized No comments
The effects of Maryland’s all-payer rate regulation, the only of its kind in the nation, are clearly seen in the HCI results where Maryland hospital charges are approximately one-third of the US average.  As rate changes have been heavily limited for the past thirty-plus years, it’s no surprise to see Maryland and the Baltimore metro area as the lowest charge regions in the country.  As we kno...
Tuesday, May 22, 2018 Cleverley Uncategorized No comments
The FY19 IPPS Proposed Rule contains a section for requirements for hospitals to make public a list of their standard charges via the internet. This section of the proposed rule revisits a reminder contained in the FY15 IPPS Proposed Rule and ultimately the initial calls for transparency in the Affordable Care Act (specifically, 2718(e) of the Public Health Service Act). That language required ...
Wednesday, May 16, 2018 Cleverley Uncategorized No comments
It’s no secret that industry leaders are continually tasked to do more with less.  Economic pressures, regulatory changes, technological advancements, transparency initiatives, and payer negotiations continue challenging leaders as the healthcare industry transforms. Financial goals frequently drive a hospital’s health and long term viability.  As part of the budget cycle, many hospitals identi...
Wednesday, May 16, 2018 Cleverley Uncategorized No comments
  In our work with hospitals around the country, we have found that many hospitals are struggling to identify what services are most subject to price transparency concerns. Some are taking a broad-brush approach and reduce all charge codes to the level of free-standing entities. This approach is usually not the most effective methodology because it does not focus on the critical procedur...
Wednesday, March 28, 2018 Cleverley Uncategorized No comments
Health systems must decide which hospitals should be targeted and how quickly price reductions can be implemented. These systems are beginning to establish strategic pricing directives that deal explicitly with outpatient pricing at their individual hospitals. These systems have two critical decisions: which hospitals should be targeted and how quickly price reductions can be implemented. In ou...
Tuesday, March 20, 2018 Cleverley Uncategorized No comments
  The 2017 State of the Hospital Industry published by Cleverley and Associates shows a dramatic difference between the Bureau of Labor Statistics reported values for hospital cost inflation when compared to actual payments received by hospitals when all payers, including government are included. During the period 2010 to 2015, the BLS reported average annual inflation rates for hospital ...

Subscribe to our Blog!

Enter your email address to subscribe to our blog and receive notifications of new posts by email!