Contractor Cadence McShane Construction Co. said that it has broken ground on medical office complex in North Dallas. The four-story, 92,000-square-foot medical office building is scheduled for completion in December and will include an ambulatory surgery center and medical office space. Several medical tenants have already signed leases in the building including Glaucoma Associates of Texas, Cornea Associates of Texas and the Ophthalmology Surgery Center of Dallas.
CIGNA Corp. said that it will close its claim-processing center in Loughrea, Ireland, in June and cut all 180 jobs there roughly six years after the company began expanding the office. The layoffs are considered part of the 1,000 U.S. jobs CIGNA is cutting because the Irish employees process claims from U.S.-based customers. CIGNA is automating and outsourcing the work from Ireland to vendors to reduce costs.
A new Tennessee law that allows small businesses to form cooperatives to buy health insurance went into effect, but only one insurer has developed a product under the law, whose supporters had hoped it would stabilize rates by spreading risk. BlueCross BlueShield of Tennessee is seeking groups to pilot up to 10 co-ops statewide, starting in March. But a spokesman said it isn't clear how interested small businesses will be. Insurers and businesses in other states that passed similar laws recently have been slow to sign on, and some of them question the potential for savings.
Rising deductibles on health insurance policies is adding to the financial problems forcing some Nashville-area residents to delay needed medical care. Due to the job losses and higher unemployment in Tennessee, the higher costs run the risk of creating sicker patients who put off care too long, critics say. The trend could also mean less revenue for cash-strapped hospitals, doctors, and other providers as the national economy slows down.
The overall employment picture in the U.S. continues to be dismal, but the healthcare sector is one of the few relative bright spots as the industry saw a net gain of 419,000 jobs in 2008 and its growth outlook continues to be strong through 2016, according to the Bureau of Labor Statistics. Overwhelmingly, employers are taking a wait-and-see attitude on hiring in 2009," said Jason Ferrara, vice president for corporate marketing for Careerbuilder.com. "However, healthcare seems to be one of those industries where hiring is still needed and still expected."
This entry from the Wall Street Journal's Health Blog discusses President Barack Obama's mention of healthcare in his inaugural address on Tuesday. The blog notes that Obama mentioned U.S. healthcare "is too costly," but using technology can "raise healthcare's quality and lower its cost."
Due to new incentives, doctors are finally beginning to favor of electronic prescriptions. Medicare this month began paying doctors a bonus if they switch their patients over to e-prescribing, and some private health plans also have begun offering extra payments along with free equipment. A coalition of technology companies is is also giving doctors free software to encourage them to ditch paper prescription pads. As a result, the number of physicians prescribing medicines electronically has more than doubled in the past year to about 70,000, or about 12% of all office-based doctors.
Globalization is no longer an uncertain trend in the distant future. U.S. providers must refine their organizational strategy to compete in a marketplace that is broader than ever before. +
If you're an HR executive in the healthcare industry, there is no denying that we are living in interesting times right now, and it's hard to say if that's a blessing or a curse. +
While many hospitals have long operated with slim margins and careful expense management, today's worldwide financial crisis raises the pressures to unprecedented levels. Mary Ann Holt, RN, MSN, a senior partner at IMA Consulting, discusses how the biggest impact may stem from debt financing bonds that require certain performance targets to be met. +
When it rains, it pours, and that's never been as true financially as it is in this recessed economy. Healthcare used to be called recession-resistant, even recession-proof. Those days are long gone. +
Globalization is no longer an uncertain trend in the distant future. U.S. providers must refine their organizational strategy to compete in a marketplace that is broader than ever before. +
An interview with David Watson, MD, a family practitioner for more than 50 years in Yoakum, TX, who was recently named Country Doctor of the Year by physician staffing group Staff Care. +
One thing is certain, healthcare globalization by its broadest definition is already well under way. Nearly every day a new, cross-border deal makes headlines. In the latest development WellPoint is providing medical management consulting services in China through WPMI Enterprise Consulting and Services Co.
As healthcare organizations expand across the globe, opportunities abound for private hospitals, consultants, medical device firms, and associations. But perhaps the most publicized element from a Western perspective has been the predictions that outbound medical travel will dig into U.S. providers' margins.
For this month's issue of HealthLeaders magazine, I wrote a cover story called Flat-World Healthcare that takes a deep-dive look into how emerging global competitors could impact U.S. providers.
Even though researchers are paying greater attention to the globalization of healthcare than ever before, recent speculation about the rate and reach of medical travel is running up against today's uncertain economic conditions.
On one hand, some of the economic fundamentals appear to be lining up in support of an increase in employer-sponsored medical travel benefits. In a down economy, U.S. employers are saying they cannot keep up with the cost of healthcare, and paying an average of $8,482 per worker for health coverage puts them at a competitive disadvantage globally. For the first time ever, American workers in 2008 on average paid more than $1,000 for employer-sponsored insurance coverage, according to benefits consulting firm Mercer, which is up 17% from $859 in 2007.
What's more, the high-deductible, consumer-directed insurance trend is only expected to escalate in the coming years. Employers want workers to pick up more of the healthcare tab so that they will make smarter and more cost-effective health choices, and as they shift more of the financial burden onto workers, some employers are also trying to give them cost-saving options to make their healthcare dollars go further. With large companies and payers watching intently, a handful of employers have entered into deals with international hospitals to offer medical travel benefits as part of their self-insured plans.
"Employers are asking for innovative solutions around reducing their overall healthcare spend," Vishal Bali, CEO of Wockhardt Hospitals Group, tells me in this month's issue. "Hospitals in the United States are not going to be able to change their cost structures. Then what are the other options? Looking at our global options for reducing healthcare costs."
For sure, not everyone is convinced that droves of insured Americans will flee to private hospitals abroad. But considering the financial outlook of the healthcare system, and the fact that global competitors are focusing on traditionally high-dollar elective procedures, it may not take millions of patients to hurt U.S. healthcare's bottom line. At the end of last year, Moody's Investor Services downgraded the healthcare industry's 12- to 18-month outlook from stable to negative. Moody's predicts that in a tough economy, fewer paying patients will seek care, particularly in costly elective surgeries. In fact, the American Hospital Association released data supporting this outlook. The AHA says admissions and elective procedures are both down across the nation.
But at the same time remember that we are in the midst of a global recession, so these trends are not solely impacting U.S. providers. For sure, private healthcare organizations abroad are running against the same consumer mentality. Regardless of geographic location, when people face financial insecurity, even necessary elective procedures become luxury items. Added to the weak economic outlook are recent stories of terrorism and other security issues affecting medical travel destinations like India, Thailand, and Mexico, and predicting globalization's near-term impact on healthcare is a muddy forecast at best.
Note: You can sign up to receiveHealthLeaders Media Global, a free weekly e-newsletter that provides strategic information on the business of healthcare management from around the globe.
