Issue link: https://beckershealthcare.uberflip.com/i/759108
26 CFO / FINANCE Fitch: Change in Political Environment Could Disrupt Healthcare Business Models By Ayla Ellison M any major healthcare issues are hanging on the outcome of the upcoming presidential election, according to a Fitch Ratings report. Topics such as the Affordable Care Act and drug pric- ing are expected to be included in policy proposals and debates leading up to the November election. "In the near term, these issues pose headline risk to healthcare equity prices that may influence capital deployment decisions," according to Fitch. Over the longer term, the upcoming election will have a significant effect on the healthcare industry, as change to the legislative and political environment could cause disruption to business models, according to Fitch. The viability of public health insurance exchanges is one issue that hinges on the election. "Vibrant ex- change marketplaces with adequate competition to ensure rational pricing would likely be the best case scenario for healthcare providers and, by extension, the rest of the U.S. healthcare industry. This is more likely to occur with a balance of power that favors Democrats," stated Fitch. n Geisinger to Buy Medical School, Deal Will Close by 2017 By Erin Dietsche D anville, Pa.-based Geisinger Health System has plans to purchase Scranton, Pa.-based The Common- wealth Medical College, reports The Citizens' Voice. The new medical school will be dubbed the Geisinger Commonwealth College of Medicine. Geisinger President and CEO David Feinberg, MD, and TCMC President and Dean Steven Scheinman, MD, official- ly announced the deal during a conference at the medical school Sept. 28. Though Geisinger's board and TCMC's board have ap- proved the acquisition, it still awaits regulatory approval. Geisinger confirmed the deal will close within the next 90 to 120 days. The transition will be seamless, meaning stu- dents who have begun their year at TCMC will complete their year at Geisinger Commonwealth College of Medi- cine. TCMC, which currently has 480 students, opened its doors in 2009. By 2011, the Liaison Committee on Medical Ed- ucation put it on probation due to financial struggles. Though TCMC considered affiliating with the University of Scranton (Pa.), talks dissolved in 2012. The LCME lifted its probation a few months later. "Geisinger has been dedicated to medical education for more than a century and having a medical school com- pletes the continuum," Dr. Feinberg said in a statement. "This strong alliance sets us apart by allowing us the unique ability to offer medical students a fully integrated learning experience while filling a tremendous need for physicians in the regions we serve." "I am energized by the array of exciting possibilities avail- able to us," Dr. Scheinman said. "From new clinical training sites to access to Geisinger's world-class research scien- tists and facilities, today's agreement guarantees the fu- ture of the college, expands our ability to create new edu- cational programs and positions northeastern and central Pennsylvania as a national hub for scientific discovery, par- ticularly in the realm of genomics." n KPMG Ends Contract with Broward Health Over Audit Dispute By Brooke Murphy B roward Health in Fort Lauderdale, Fla., split with accounting firm KPMG aer the firm refused a contract addendum that would have extensively restricted its inquiry powers into Bro- ward's activities, reports Sun Sentinel. e addendum would effectively prohibit KPMG from investigating possible corruption in its annual audit of the hospital system. e ad- dendum would limit KPMG's ability to request documents the system produced or may produce for law enforcement agencies and prohibited KPMG from evaluating Broward's compliance with laws and regula- tions, according to the article. Broward officials said they added the addendum over concerns KPMG would be unable to certify the system's financial statements by the end of the year, due to the length of KPMG's possible investigation into cor- ruption allegations against the system. Karen Mitchell, the KPMG partner responsible for the Broward Health account, rejected the addendum during a meeting with system board members Sept. 7. She did not confirm whether the firm was planning to investigate corruption charges. "We found the addendum to be unacceptable. It was in direct violation of government auditing standards," Ms. Mitchell told Sun Sentinel. e board voted 4-1 to terminate its contract with KPMG. n