Transaction Accounting Issues for Not-For-Profit Hospitals

Hospital Industry Overview

Timeline of ACA Impact • 2010 – Patient Bill of Rights goes into effect. Cost-free preventive services begin. • 2011 – Medicare discounts on preventive services and discount brand-name drugs begins. • 2012 – Accountable Care Organizations and other programs help doctors and health care providers work together to deliver better care. • 2013 – Open enrollment in the Health Insurance Marketplace began on October 1. • 2014 – All Americans have access to

 The hospital industry has experienced an increase in consolidation in recent years, which has allowed hospitals to lower operating costs through economies of scale, increase service offerings, enhance negotiating power with insurance companies, and compete effectively for managed care business.  Consolidation is largely a reaction to uncertainty in the regulatory environment as well as a favorable financing environment.  A concern of the increased consolidation is the potential creation of monopolies in cities and regions. Some in the industry believe that consolidation has allowed and will allow hospitals to increase prices as the competition in their region dissipates.  A major theme in the hospital industry is uncertainty over the Affordable Care Act (“ACA”) and how key provisions will play out over the next few years.

affordable health insurance options.

Source: HHS.gov/Healthcare

The Impact of the Affordable Care Act and Transaction Accounting Issues for Not-For-Profit Hospitals

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