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by Strategic Value Analysisģ in Healthcare

 

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Savings Beyond Price -Weekly eNewsletter - November 11, 2009

Robert T Yokl - Healthcare Supply Chain Consultant Strategic Value AnalysisRobert T. Yokl

President & Chief Value Strategist

 

 

Time is Running Out


Greetings,

As I write this article all of the news outlets are reporting that the Houseís Health Care Reform bill HR 3200 has just been passed. If you havenít read a synopsis of this bill you should, seeing as when this bill is merged with the Senate bill and if approved, it will affect EVERYONE in the healthcare industry for decades Ė big time.

Highlights: If you are a healthcare device manufacturer it will cost you 2.5% in additional taxes to sell your products to healthcare organizations. Who do you think is going to pay for this extra tax burden? 

$500 Billion will be slashed from hospitalís Medicare reimbursement that has already been pruned for years by the Feds. How are you going to replace this revenue source to meet your budget commitments?

$32 Billion in long-term care reductions are contained in this bill.  This is in addition to a 12 billion dollar cut in October of this year by CMS. If your hospital has a long-term care facility how are you going to fund it going forward?

Get Ready! If you arenít preparing for these big, monumental and disruptive changes in our healthcare system, now is the time to do so. I have already observed that progressive hospitals, systems and IDNs making radical changes to their supply chain operations. They have been centralizing all of their purchasing activities under one supply chain division, establishing distribution service centers, reducing their PPI cost to an absolute minimum and are attacking their utilization misalignments. Is this what you are doing too 

Time is Running Out! Even if healthcare reform isnít passed this year or even next year fundamental changes in healthcare reimbursement will be the order of the day going forward.  We are now at the TIPPING POINT with our healthcare cost which is increasing 10% to 13% annually for our employers.  These costs are unsustainable over the long-term; time is running out for healthcare organizations that arenít ratcheting down all of their costs to prepare for this eventuality. 

Donít wait for the Senate bill to be passed to make sweeping and essential changes in your supply chain operations; the winds of change are upon us and their velocity is growing every year necessitating a change in the way we do business. If we donít start this change now we will be left with federal mandates like the ones that I just cited that will be almost impossible to recover from or to keep our boat afloat.

Your Partner In Savings Beyond Priceô,

Robert T Yokl

Chief Value Strategist

Strategic Value Analysisģ In Healthcare

Bobpres@strategicva.com

1-800-220-4274

 

P.S. If you havenít seen our press release on our new book, ďSupply Utilization RevolutionĒ you might want to view it now.  The book is FREE ($12.95 Value), but the information is PRICELESS! Donít miss this extraordinary (while our limited stock lasts) offer! 

 



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