August 12, 2016
Progress on CON, Capital Funding,
and Capacity
Nearly three years ago, when we as a field and as a state agreed to a modernized all-payer model with CMS, we accepted that some of the details would be sorted out along the way. And we had confidence that all stakeholders were committed to two overriding principles: health care should be provided more efficiently and the quality of care should be improved.
One of the biggest pieces to be figured out was an appropriate way to identify and fund hospitals' capital needs in an environment governed by annual global budgets. As care delivery was being transformed, the facilities in which that care would be provided would need to change as well. Last year, MHA convened the Capacity, Certificate of Need, and Capital Funding Task Force to determine the best course for these issues.
MHA recently shared the task force's recommendations with Maryland Health Care Commission Executive Director Ben Steffen. There are multiple opportunities to cooperate on issues like revisions to the Maryland State Health Plan so it aligns with the modernized all-payer model and a streamlined CON application process. For example, as hospitals are the only segment of the health care sector at risk for total cost of care growth, revising the State Health Plan is essential to determine the appropriate services needed across all providers, not just hospitals. Next, MHA will share the final report with the Health Services Cost Review Commission, to work through the details of funding capital projects.
In the meantime, HSCRC and MHCC are sharing information at an unprecedented level, and the public meetings of each are cross-pollinated with ex-officio members from the other. This degree of transparency and partnership should improve the process for hospitals seeking capital funding, as well as the adjustments in capacity that our state will need in the future.

Commissioners Raise Total Cost of Care Concerns
At their monthly meeting this week, Health Services Cost Review Commission members discussed potential actions the commission may take before the end of the calendar year should the Medicare Total Cost of Care guardrail be in jeopardy for calendar year 2016. In addition, commissioners voted on the fiscal year 2017 update for psychiatric hospitals and Mt. Washington Pediatric Hospital. A draft recommendation on the Population Health Workforce Support for Disadvantaged Areas program was also received as part of a busy August meeting agenda. Read more in this month's Newsbreak.
340B Hospital Recertification Opens
The Health Resources and Services Administration's (HRSA) 340B hospital recertification process for 2016 opened this week and runs through September 7. All 340B hospitals are required to recertify with HRSA to ensure they continue to meet the 340B hospital eligibility requirements. A recent HRSA webinar on the recertification process is available on HRSA's 340B website.
Institute for Diversity Offers Webinar
The Institute for Diversity in Health Management, in collaboration with the American Hospital Association, will host a free webinar, "Change and Diversity: Two Constants in a Tumultuous Health Care Environment," Tuesday, August 23 at noon. Kevin Lofton, FACHE, chief executive officer, Catholic Health Initiatives and former AHA chair, will discuss significant changes in the health care environment as it moves toward a delivery system focused on valued-based care, population health, consumerism and outpatient services. Lofton will also highlight key leadership traits and efforts across the field to promote diversity and enhance the quality of care for all patients. Click here to register.
MHA Executive Committee Minutes Available
The minutes from the June MHA Executive Committee meeting are available on the Governance page on our website. Members must be logged in to download the minutes.
MHEI's Annual Conference Addresses Today's Challenges
Dr. Trissa Torres, Senior Vice President at the Institute for Healthcare Improvement and presenter at the upcoming MHEI conference, cites a need for a "shift in power" as one of the biggest challenges for health care professionals.

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AHA and CDC Update Hospitals on Zika Virus Preparedness and Response
The AHA and Centers for Disease Control and Prevention this week hosted a call for hospital and health system leaders on the latest developments regarding Zika virus.

Baltimore Business Journal, By Holden Wilen, August 5
The Wall Street Journal, By Thomas M. Burton, August 5
The Washington Post, By Josh Hicks, August 8
The Baltimore Sun, By Michael Dresser, August 8
The Washington Post, By Arelis R. Hernandez, August 9
Health Care Business Daily News, August 9
The Washington Post, By Arelis R. Hernandez, August 10
The Daily Record, By Daniel Leaderman, August 10