In the News: April 13–19

Sg2 is dedicated to helping our clients interpret the latest news and trends in health care. Below you’ll find our analysis of this week’s key industry headlines, along with links to related Sg2 resources.

CMS Issues Hospital IPPS Proposed Rule for FY 2018

On April 14, CMS filed the hospital Inpatient Prospective Payment System (IPPS) Proposed Rule for FY 2018, which proposes a rate increase of 1.6088% compared to FY 2017. Additionally, CMS proposes using National Health Expenditure data—instead of Congressional Budget Office data—to estimate the uninsured rate for calculating Medicare Disproportionate Share Hospital (DSH) payments. As a result, overall FY 2018 Medicare DSH payments would be $985M higher compared to FY 2017.

For a recap of FY 2017 finalized Medicare payment updates, check out the Sg2 on-demand webinar Acute Care and Ambulatory Payment Update for 2017. The Sg2 Analytics portal also offers FY 2017 payment calculators for IPPS, as well as the Outpatient Prospective Payment System.

Innovative Hospital-Community Partnerships Hold Promise for Behavioral Health

The huge unmet demand for behavioral health services poses a challenge for health systems facing shortages in psychiatric beds and behavioral health providers. A recent Health Affairs article discusses how community stakeholders collaborate with providers to treat mental health issues before youth enter the juvenile justice system.

Sg2 believes demand for outpatient behavioral services will increase by nearly 20% in the next 10 years due to an addiction epidemic and the increasing incidence and awareness of mental health disorders. For Sg2’s insights into building successful community partnerships to increase competencies in behavioral health and better meet surging demand, read the Sg2 FAQ: Behavioral Health Community Partnerships (pages 7–13) in Service Line and Enterprise Programs, Technologies and Strategies—Frequently Asked Questions: Volume 5.

US Adult HPV Prevalence Estimated at 43%

CDC’s April 2017 data brief estimates the prevalence of human papillomavirus (HPV) in adults aged 18 to 59 during 2013 and 2014 was about 43%, while high-risk genital HPV prevalence was about 23%. HPV is the most common sexually transmitted infection in the US, and high-risk HPV can cause cervical and vaginal cancer in women and penile cancer in men.

Generalist obstetricians and gynecologists (ob/gyns) are an important source of maintenance and preventive care for women who may be at risk of developing diseases from HPV such as cervical cancer. Sg2 believes that ob/gyn alignment will be critical to generate downstream revenue for health systems, especially in the ambulatory setting. Read the Sg2 Expert Insight Ob/Gyn Alignment Revisited as a Critical Channel for Health Systems to learn why.

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As of February 11, 2016, Vizient, Inc. has completed its purchase of MedAssets Sg2 and spend and clinical resource management segments from Pamplona Capital Management, LLC. MedAssets revenue cycle business will continue to operate as a wholly-owned subsidiary of Pamplona Capital Management LLP.

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