Practice Strengths

Health Care Reform: Hospitals and Providers

Now that the precedent-setting national health care reform legislation has been signed into law, clients across various industries are eager to understand the potential impact on their business. Baker Hostetler has positioned itself as a leading source of information on the intricacies of the new law.

Our attorneys, analysts and legislative professionals followed the proposed legislation throughout its life cycle, providing us with a deep understanding of the final law. To address those aspects of health care reform most likely to have an impact on businesses, and on healthcare industry providers and insurers, Baker Hostetler has assembled a comprehensive cross-practice Health Care Reform Group that includes representatives from our experienced Healthcare Industry, Employee Benefits, TaxEmployment and Labor and Legislative Teams. Through this collaboration, we bring clients the most up-to-date information on implementation and significant milestones for businesses, employers, hospitals, physicians and insurers. The group also works with clients to develop customized, creative solutions for reform-related issues employers and providers may face.

With seasoned practitioners on the Health Care Reform Team, Baker Hostetler is poised to assist clients navigate the complexities that lie ahead.

Our lawyers closely follow developments in health care reform and will keep you updated on such reform topics as:

For Hospitals and Providers:

Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act


Earlier this year, President Obama signed into law two sweeping health care reform bills (frequently referred to together as “PPACA” or the “health care reform law”). The first of the two acts, the Patient Protection and Affordable Care Act was signed into law on March 23, 2010. The second of the two acts or the “reconciliation bill,” the Health Care and Education Reconciliation Act of 2010, was signed into law on March 30, 2010.

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Health Care Reform Basics for Hospitals and Providers


Healthcare laws and regulations are more fluid than ever as lawmakers and regulators endeavor to implement the landmark health reform legislation. Providers now must begin the process of positioning themselves strategically to assure that they are prepared for the crush of changes applicable to their existing operations and for the impact of the many new payment and delivery system models established nder PPACA. Additionally, providess must heed the call for enhanced quality in exchange for payment and recognize that their institutions and businesses will be subject to heightened scrutiny with regard to coverage, payment and compliance not only under the Medicare and Medicaid programs, but also private insurance plans.

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340B Program Changes


Historically, the 340B Drug pricing program has allowed certain hospitals and federal grantees and federally qualified health center look-alikes to purchase outpatient drugs at heavily discounted prices. PPACA expanded the types of hospitals and entities eligible to participate in the program.

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Physician-Hospital Alignment / Accountable Care Alignment (ACOs)


A number of cost savings initiatives in PPACA are aimed at improving efficiency through alignment. As reimbursement trends and increasing costs require physicians and hospitals to do more with less, investigating alternative alignment models may offer a solution to this demand. Through models such as gainsharing, co-management and ACOs, hospitals and physicians may collaborate to provide safe, quality care more efficiently.

In broad terms, an ACO is a network of healthcare organizations and providers, including primary care physicians, specialists and hospitals, that can be held accountable for the cost and quality of care delivered to a group of identified patients. As was the case with HMOs, the theory behind ACOs is that greater coordination and cooperation among providers can result inhigher quality care and, consequently, a healthier patient population that is less costly to care for.

ACOs differ from the bundled payment options under PPACA by promoting efficiency and care on a conitunig basis rather than focusing on a single medical episode. ACOs also are distinguishable from the medical home model, which typically emphasizes preventive and primary care and often excludes specialists and hsspitals. ACOs typically mannage the full continuum of care for their members.

PPACA mandates that CMS establish and ACO-based Medicare shared savings program by January 1, 2012.

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Health Care Reform Webinars, Presentations, Publications and Other Materials


As the discussion about health care reform continues, businesses in every industry are inundated with information about the potential effects of the legislation. Attorneys in Baker Hostetler’s Healthcare Industry, Employee Benefits, Tax, Employment and Legislative Teams have offered periodic webinars to cut through the clutter, addressing key issues in greater depth and providing practical guidance you can put to use today. Many members of our Health Care Reform Team are recognized leaders in their fields, and as a result, are much in demand for speaking engagements on health care reform throughout the country, as well as contributions to well-known publications and other events.

Health Care Reform

Baker Hostetler has assembled a comprehensive cross-practice Health Care Reform Team that includes representatives from our experienced Healthcare, Tax, Employment and Labor, Employee Benefits and Legislative and Regulatory Teams.


Employee Benefits

 

John J. McGowan Jr.

216.861.7475

 

Jennifer A. Mills

216.861.7874


Employment

 

M.J. Asensio

614.462.2622

 

Todd H. Lebowitz

216.861.7899


Healthcare Industry

 

Susan Feigin Harris

713.646.1307


Legislative and Regulatory

 

William J. Weber

202.861.1681


Tax

 

Paul M. Schmidt

202.861.1760

 

Edward G. Ptaszek Jr.

216.861.7497

Health Care Reform 101: What Will it Mean for Your Business?