Becker's Hospital Review

Becker's Hospital Review -- October 2014

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Hospital Review October 2014 • Vol. 2014 No. 10 INDEX Table of Contents p. 6 Payment Models and Reimbursement p. 25 Alternate Care Networks p. 43 CEO Roundtable p. 47 Patient Safety p. 51 Clinical Integration & ACOs p. 55 Patient Blood Management p. 68 Financial Management p. 72 Growing OR Case Volume p. 83 Health IT p. 90 Critical Access Hospitals p. 94 Leadership & Management p. 98 Executive Compensation p. 106 25 Healthcare Leaders Under 40 These special men and women have demonstrated professional excellence all before turning 40. p. 100 CEO Roundtable 4 health system leaders on their top priorities, most pressing challenges and the last time they were truly excited. p. 47 Uber's 3 Innovation Lessons for Healthcare Taxi drivers are up in arms because their model was disrupted by someone doing it better and cheaper. Healthcare will soon face the same. p. 115 Is This the End for Hospital Charity Care? By Ayla Ellison With subsidized health plans available and Medicaid ex- panding in 26 states, some hospitals are scaling back their charity care programs. As a result of the Patient Protection and Affordable Care Act, more than 10.3 million have signed up for health plans through the exchanges, with more than 80 percent of new enrollees eligible for subsidized coverage. The reform law has also had a significant impact on enrollment in Med- icaid and the Children's Health Insurance Program, with 3 Things the Most Innovative Health Systems Do By Heather Punke Here's how three organizations have set themselves apart when it comes to the art of innovation in healthcare. To fit the standard definition of "innovative," organi- zations in any industry have to introduce new ideas or be original and creative in thinking — and in the con- stantly changing industry that is healthcare, hospitals and health systems of all sizes fit this description. 1. Healthcare investment growth. As healthcare became a more central part of the economy over the last decade, the arena has moved from a situation where boutique private equity funds and boutique lenders focused on the arena to a spot where all or most major lenders and private equity funds spend a great deal of time in the broader healthcare arena. According to KPMG, global health- care private equity deals doubled from 2010 to 2011. Bain & Co.'s 2014 Global Healthcare Private Equity Re- port states more than 209 healthcare buyouts occurred in 2013, and stra- tegic M&A deal value in the health- care industry was up 30 percent, compared with 11 percent for all in- dustries in the private equity market. 2. The scope of private equity invest- ment in healthcare. In 2013, slightly more than $16 billion dollars were reportedly invested in healthcare by private equity funds in the form of healthcare buyout deals globally, ac- cording to Bain. North America led investment activity, with targets in the region accounting for seven out of the top 10 deals. There were no mega- deals in healthcare in 2013, and buy- out deal value was down 23 percent. 3. Healthcare investment catego- ries. Healthcare is often defined, for continued on page 16 continued on page 24 continued on page 12 INSIDE: 100 Hospitals and Health Systems With Great Oncology Programs p. 30 20 Investment Niches in Healthcare Private equity investment in the healthcare industry has grown considerably in recent years. Here are 20 investment niches to know and three observations on the evolution of healthcare as an investment area. By Scott Becker, JD, CPA, Helen Adamopoulos and Ayla Ellison SAVE THE DATE! Becker's Hospital Review Annual Meeting May 7-9, 2015 Swissôtel - Chicago, Illinois 153 Great Health System Executives Speaking 119 Sessions - 212 Speakers To learn more visit To register, visit

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