Health Beat: Research Shows Dire Impact of Policy Changes On Rural Hospitals

Editor’s note: Each Wednesday, Talk Business & Politics provides “Health Beat,” a round-up of health-related topics in our email newsletter, which you can sign up to receive daily for free here.

RESEARCH SHOWS DIRE IMPACT OF POLICY CHANGES ON RURAL HOSPITALS
New findings released by iVantage Health Analytics show that the impact of sequestration and reduced bad debt reimbursement for rural hospitals across America will result in $3.8 billion in lost revenue and 5,000 healthcare jobs lost over the next decade.

Between 2012 and 2015, critical access hospitals (CAHs) have seen a reduction in their reimbursable bad debt from 100% to 65%. Rural prospective payment systems (PPS) facilities have seen their reimbursements decline from 70% to 65%.

To see the infographic depicting the vulnerability of rural hospitals and the impact of their potential closure on the local and national economy, visit the iVantage resource page here.

U.S. SUPREME COURT UPHOLDS OBAMACARE SUBSIDIES
In a 6-3 ruling last Thursday, the U.S. Supreme Court upheld the use of healthcare subsidies in connection with the Affordable Care Act. The case, King v. Burwell, faced a question over the phrase, “Established by the State” and whether or not Congress intended the portion of the landmark health care measure to apply to federal and state health exchanges or just federal-run exchanges. Read more coverage from TB&P here.

LEGISLATORS TOLD ARKANSAS STILL NEEDS STATE EXCHANGE
Arkansas should continue its efforts to establish a state-based insurance exchange, the executive director of the state’s Health Insurance Marketplace said Monday, even though a recent Supreme Court ruling makes it less necessary to do so. Read more of Cheryl Smith Gardner’s comments to lawmakers in this report.

UAMS PROFESSOR AWARDED $400,000 TO STUDY LYME DISEASE
Jon Blevins, Ph.D., an assistant professor in the Department of Microbiology and Immunology in the UAMS College of Medicine, has been awarded a two-year grant of more than $400,000 by the National Institutes of Health to study the genetics of the bacterium that causes Lyme disease.

The goal of the research is to identify specific genes required by Borrelia burgdorferi to live in a mammal or a tick. Through genetic manipulation, certain genes believed to help the bacteria adapt, especially during infection and transmission, can be mutated to inactivate individual genes.

According to the Centers for Disease Control and Prevention, Lyme disease is the most common infection in the United States borne by pathogens and parasites in human populations. Between 20,000 and 30,000 cases are reported every year. However, a recent study suggests that Lyme disease infection rates might be 10 times higher than previously reported.

MILLIMAN RELEASES NEW RESEARCH ON COSTS ASSOCIATED WITH MEDICAID MANAGED CARE PLANS
Milliman Inc., a global consulting and actuarial firm, recently announced new research into the administrative costs associated with Medicaid managed care plans, which have become increasingly popular due to the Affordable Care Act’s Medicaid expansion provisions and the continued growth of the managed care delivery system within Medicaid.

This information is especially valuable now, with the release of the proposed 2016 Centers for Medicaid and Medicare Services (CMS) capitation rate-setting guidance and the proposed rule for Medicaid managed care, Milliman said. These CMS regulations require greater documentation of Medicaid managed care administrative costs, and may be useful as plans look to establish benchmarks.

Among other findings, the analysis demonstrates that Medicaid managed care administrative costs are primarily driven by expenditures for human capital and non-income-based taxes and fees. Click here to access the administrative cost report.