Issue link: https://beckershealthcare.uberflip.com/i/821337
48 48 CEO/STRATEGY 3 Ways MACRA Will Change Health Systems By Emily Rappleye I mplementation of the Medicare Access and CHIP Reauthorization Act not only marks a new era in provider reimbursement, but it also will likely lead to significant shis within the overall healthcare system, according to a recent whitepaper from Leavitt Partners, a Salt Lake City-based healthcare intelligence firm. "New payment models that tie reimbursement to quality and cost performance rather than only volume will not only affect Medicare-enrolled providers, but all providers as alignment of pay- ment models filters throughout the industry," David Muhlestein, PhD, Leavitt Partners' vice president of research, said in a statement. "While MACRA incentivizes providers to change the way they deliver care, many providers still don't comprehend how to fully shi toward alternate payment models. In order to successfully partic- ipate, providers need to evaluate their organiza- tional capabilities, identify where gaps exist and gain the necessary resources." Here are three ways Leavitt Partners predicts MACRA will change health systems, accord- ing to the whitepaper. 1. Acceleration of the transition to val- ue-based care. Leavitt Partners believes MACRA will hasten the end of fee-for-service medicine across all payers, not just Medicare. "Allowing providers to qualify for Advanced [Alternative Payment Models] and associated bonus payments based partially on commer- cial contracts encourages both commercial payers and providers to offer and participate in additional contracts that tie payment to outcomes," the whitepaper reads. 2. Structural system changes. MACRA was intended to spur greater care coordina- tion — to be successful in either the APM or the Merit-Based Incentive Payment Sys- tem tracks, providers will need to seek new resources and partnerships. Leavitt Partners believes this element of MACRA will lead to increased consolidation among physician groups and health systems, in addition to growth in other more untraditional partner- ships. 3. Development of new quality and efficiency measures. Lastly, Leavitt Part- ners believes MACRA provides an incentive to develop and refine quality and performance metrics to be more outcomes-based, rather than process-based. n Hospital Industry's Highest- Paid CEO Made More Than $51M in 2016 By Ayla Ellison K ing of Prussia, Pa.-based Universal Health Ser- vices Chairman and CEO Alan Miller made more than $51.3 million last year, according to the company's annual proxy filing with the Securities and Exchange Commission. That amount includes his base salary, realized gains on stocks and options, incentive compensation and payment for perks and personal benefits. In deter- mining Mr. Miller's pay, UHS' compensation commit- tee takes into account his role as founder of UHS in 1978 and his expertise, responsibilities and reputa- tion in the hospital management industry, according to the proxy filing. Mr. Miller's annual compensation makes him the hos- pital industry's highest-paid CEO, according to recent Axios report. UHS reported strong financial performance in 2016. The company recorded net income of $702.4 million on revenues of $9.8 billion last year. That was an im- provement from 2015 when UHS posted net income of $680.5 million on revenues of $9.04 billion. n Poll: 75% of Americans Say Trump Should Try to Make the ACA Work By Kelly Gooch A vast majority of Americans believe President Donald Trump and his administration should try to make the ACA work, according to the latest Kaiser Health Tracking Poll. While 75 percent of Americans think the new administration should make the current law work, 19 percent think President Trump and his administration should try to make the law fail so they can replace it in the future. Along party lines, 89 percent of Democrats, 78 percent of inde- pendents and 51 percent of Republicans said President Trump and his administration should try to make the ACA work, ac- cording to the poll. However, groups of Republicans were di- vided. The poll found 60 percent of moderate and liberal Re- publicans believe the Trump administration should try to make the law work, while 45 percent of conservative Republicans be- lieve the same. Additionally, the poll found more then half of Americans (54 percent) who approve of President Trump believe his adminis- tration should try to make the ACA work, while 37 percent said they should try to make the law fail. Ninety percent of Ameri- cans who disapprove of Trump believe the president's adminis- tration should try to make the ACA work. Roughly 1,200 Americans participated in the survey, which took place March 28- April 3, 2017. n