BDO Knows Healthcare Newsletter - Spring 2016

March 2016


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In this issue of the BDO Knows Healthcare newsletter, we focus on the impact of changing reimbursements across the healthcare spectrum: on investors, providers and pharmaceutical companies. As the shift toward value-based reimbursement brings a crop of new models, perhaps the biggest change stakeholders must prepare for is embracing the concept of value, still a novelty in the healthcare arena.

How Bundled Payments Will Redefine Value in Healthcare: A Primer for Investors

As the Centers for Medicare and Medicaid Services (CMS) continues its efforts to tie reimbursements to the quality and value of care, hospitals are increasingly being held responsible for what happens to patients outside the hospital walls. CMS' first mandatory bundled payment program is narrowly focused on hip and knee replacements, it's expected to have a ripple effect on the entire post-acute provider space, as CMS develops new bundles and commercial payers follow suit.

The Overlooked Element of Value in Drug Pricing Strategy

As the drug pricing discussion unfolds in the media, much of the focus has been on how competition, research and development, and other factors are to blame for the cost of pharmaceuticals. But in an age of value-based reimbursements, it's value that will play an ever more important role for drug companies and drug purchasers alike. Hospitals, in particular, which are becoming increasingly responsible for the cost and quality of care inside and outside their walls, will be scrutinizing not only the price of a drug but its effectiveness and the likelihood of it causing costly readmissions.

How Are Changing Reimbursement Models Impacting Risk? 7 Questions to Address This Quarter

As delivery and reimbursement models continue to change, organizations' boards and advisors must be ready for the risks and rewards that follow. This article outlines the questions boards must ask to ensure their organization is prepared for the financial impact of value-based reimbursements and the alternative payment models that are emerging or already in play.

For more information on BDO USA’s service offerings to this industry, please contact one of the following practice leaders: 

Christopher J. Orella
Partner - Healthcare, National Leader
New York, N.Y.

Steven Shill
Partner - Healthcare, National Leader
Orange County, Calif.

Patrick Pilch
Managing Director - Healthcare, National Leader 
New York, N.Y.