Becker's Hospital Review

41 FINANCE FINANCE Moody's: Distressed Public Hospitals Burdened by Board Turnover, Regulations By Ayla Ellison P ublic hospitals many times have more cumbersome governance structures than private hospitals, which can have negative credit implications, according to a recent report by Moody's Investors Service. Public hospital boards are typically made up of publicly elect- ed or government-appointed individuals. With elections usually taking place every four years, board membership can change sud- denly and cause a swi change in the organization's strategic direc- tion, according to the report. e report provided the recent example of Lancaster, Ca- lif.-based Antelope Valley Healthcare District, which was down- graded in September to "Ba3" negative from "Ba2" negative. e rating downgrade was based on several factors, including AVHD's unstable governance, which led to the unexpected termination of its CEO. Public hospitals are also subject to public disclosure require- ments that can prolong financial distress. For example, public hos- pitals are subject to laws that require open board meetings, and in some cases community hearings, before they can join with anoth- er entity through a merger or acquisition. ese regulations can hold up or lengthen negotiations with potential partners. n Average Point-of-Service Collections Increase to $1.8M in FY 2014: 4 Things to Know By Carrie Pallardy T he Advisory Board Company has released its latest Revenue Cycle Survey at its inaugural technology summit Amplify. This biennial survey focuses on point-of-service collections in healthcare. Here are four things to know about the survey. 1. In fiscal year 2010, median point-of-service collections were $700,000 per organization. Median point-of-service collections increased to $1.8 million per organization in fis- cal year 2014. 2. The survey researchers also examined point-of-service collections per hospital bed. In fiscal year 2010, the median point-of-service revenue per bed was $2,660. This medi- an number increased to $4,000 in fiscal year 2012 and to $5,780 in fiscal year 2014. 3. Point-of-service collections have now increased to be 0.57 percent of net patient revenue, but it is estimated healthcare organizations will need to increase point-of-service collec- tions to 5 percent of net patient revenue to sustain financial health, according to The Advisory Board Company. 4. The biennial Revenue Cycle Survey included input from 170 executives from approximately 70 hospitals and health systems, the majority of which are nonprofit. n BECKER'S 7 th Annual Meeting 2016 April 27-30, 2016 | Hyatt Regency, Chicago Register at http://www.beckershospitalreview.com/conference/ 41 FINANCE FINANCE

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