MHA Update Newsletter
June 12, 2015
MHEI Programs & Webinars

June 16

Maryland Patient Safety Center TeamSTEPPS Tools Training



June 17

Office of Health Care Quality Restraint and Seclusion


Quick Links


Resources and Flexibility

The impressive gains Maryland's hospitals have made during the first year under the modernized Medicare waiver - $100 million in savings to the Centers for Medicare & Medicaid Services; a 4 percent drop in inpatient admissions and use rates; a 6 percent reduction in potentially avoidable utilization; a 26 percent drop in hospital acquired infections; and more - only begin to tell the story of the tectonic shift that has taken place since the agreement was signed.


Those of you who have stepped up to make these achievements possible know firsthand the challenges of dramatic organizational change, as well as the difficulty of managing that change at such a breakneck pace. And you know how critically important it is that state and federal regulators support your efforts by providing the right tools to do the job - both the resources to invest in delivery system transformation, and the flexibility to tailor those investments to your individual communities.


Earlier this week, the Health Services Cost Review Commission provided hospitals with those much-needed resources, approving a 3.3 percent average per capita global budget increase (before adjusting for uncompensated care and Maryland Health Insurance Program reductions). That means more than $500 million in additional revenue for hospitals in the coming year and represents the largest increase in more than six years.


While a portion of the increase comes in the form of grants that require additional HSCRC reporting, the majority enables hospitals to invest in system delivery transformation as they see fit - flexibility that's needed to ensure long-term success under the waiver.


The increase is the result of close collaboration between MHA and HSCRC staff and commissioners, who worked together to develop an update that accounts for the risk hospitals have assumed in caring for an unknown number of patients with unpredictable care needs within a fixed global budget.


The changes that have come to Maryland's health care landscape in the past 18 months mean that hospital patients are receiving more conscientious after-care and improved inpatient care, and communities are healthier. This has been, and will continue to be, hard work for Maryland's hospitals. But this unanimously approved global budget increase shows that HSCRC commissioners recognize the value of those changes and understand hospitals' need to make strategic investments now, so the improvements can be sustained for years to come.
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In This Issue
HSCRC Approves 3.3 Percent Global Budget Update Increase
Health Services Cost Review Commission members this week unanimously approved the global budget revenue update for the year beginning July 1, 2015. In addition to the 3.3 percent average per capita update for hospitals under global budgets (more than $500 million), the commission also approved an update of 2.2 percent for the specialty hospitals, an increase of 0.3 percent from the original staff recommendation. MHA had argued at last month's commission meeting that the update should be moved from the 1.9 percent as recommended. Commissioners also approved final recommendations on the Readmissions Share Savings Program, support for the Maryland Patient Safety Center, the Nurse Support II Competitive Grant Program, and an update to the Relative Value Unit Scale for Radiation Therapy Services. More details can be found in this month's edition of Newsbreak
Annual Report, Breakout Session Summaries Available
For those who were unable to attend last week's annual membership meeting, summaries of the three peer breakout sessions - The Move to Population Health: Is It Working?, Creating Community and Consumer Partnerships, and HEZs and Housecalls - are available. Also, MHA's annual report to members, distributed at last week's meeting, is available to download.
MHEI's Leadership Conference Open for Registration
MHEI new logoThe Maryland Healthcare Education Institute's 2015 Leadership Conference will be held at the Hotel Hershey in Hershey, Pa. on October 18 and 19. Headlining the event is keynote speaker Simon Sinek, a trained ethnographer, author of the global best seller, "Start With Why: How Great Leaders Inspire Everyone to Take Action," and presenter of the second most watched TED Talk of all time. This conference continues the critical conversation around population health and Maryland's unique leadership role in this movement. All senior level staff are invited to participate in the conference. CEOs should have received a packet of program brochures, but please contact us if more are needed and/or if you'd like an electronic version to send out to potential participants.

Contact: Mark Rulle
The Week Ahead

Monday, June 16

MHA Council on Financial Policy meeting (conference call)

In Case You Missed It
This week in Hospital Impact, MHA CEO Carmela Coyle points out that as hospitals change their focus from volume to value, they are also working together to transform ideas into action.

Quality and Control, Not Choice, Is What Insurance Customers Want  

Modern Healthcare, By Beth Kutscher, June 5


Final Medicare ACO Rule Could Do More to Encourage Participation  

Hospitals & Health Networks, By Paul Barr, June 5


Nation's Sickest Seniors Reshape Health Care  

USA Today, by Meghan Hoyer, June 5


Hospitals Discharge Patients to Maximize Medicare Payments, Study Finds  

The Wall Street Journal, By Anna Wilde Mathews and Christopher Weaver, June 8


50 Hospitals Charge Uninsured More Than 10 Times Cost of Care, Study Finds  

The Washington Post, By Lena H. Sun, June 8


New Ways Doctors Reach Agreement on Patient Diagnoses  

The Wall Street Journal, By Laura Landro, June 9


Md. Commission OKs Hospital Rate Increase, Infrastructure Funding  

The Daily Record, By Daniel Leaderman, June 10


Some Insured Patients Still Skip Care Because of High Costs  

WABE, By Jim Burress, June 10