Although better positioned than most industries, Healthcare is not immune to the woes which are plaguing the rest of the economy. Healthcare Finance Executives face many challenges in '09 including: bad debt, shrinking charity care, federal reimbursement shortfalls, and expense management issues. Many are hopeful that a new president and administration will make changes to help alleviate these fiscal maladies though all are preparing for the worst.
The Knowledge Congress has assembled a panel of key thought leaders and experts to help Healthcare professionals cope with all of these issues. The speakers will share their expert opinions in a two-hour Healthcare Finance webcast.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
(Please note, your State Bar or Accounting Board will make the final determination with respect
to continuing education credit.)
Advance Preparation: Print and review course materials
Course Code: 083823
Joe Becht, Jr., CPA, FHFMA
P&P Board Vice Chair,Partner
Laura Ann Gabrysch
Sr. Associate
Paul R. DeMuro
Partner
John Valenta, CPA, MBA
Senior Manager
Joe Becht, Jr., CPA, FHFMA, P&P Board Vice Chair,Partner, Ernst & Young
Status of Healthcare Industry, Challenges:
- Deteriorating bottom lines
- Very tight and costly credit
- Increase in bond downgrades
- Increases in bad debts
- Increases in charity care
- Federal payments
- State payments
- Documenting community benefit
- Not for profit healthcare forecast: stable --> negative
Paul R. DeMuro, Partner, Latham & Watkins LLP
- Obvious financial and legal consequences of the failure to meet debt covenants.
- Negotiating with lenders and others
- Legal consequences of the failure to pay vendors in a timely manner, deferring capital expenditures, failing to comply with Charity Care Policies
- Negative Effects on Compliance Programs, internal audit and privacy
- Greater scrutiny of representations and warranties, conflicts of interest, executive compensation, and whether a tax-exempt entity should maintain its tax-exempt status.
Please click the links below to download a copy of Paul DeMuro's article and co-authored article:
Financial Meltdown: Key Legal Issues for Healtchare Organizations
Author: Paul R. DeMuro
Recession opportunities: Compliance with charity care obligations and maintaining tax exempt status
Authors: Paul R. DeMuro, C.P.A., M.B.A., J.D., CHC, Julie S. Marder, J.D. & Robert C. Levels, J.D.
Laura Ann Gabrysch, Sr. Associate, Fulbright & Jaworski LLP
1. Challenges
- Down healthcare market
- New reporting, governance requirements
a. Revised Form 990
b. Schedule H
c. New focus on governance and policies, including in revised Form 990
- Potential for new legislation
a. Grassley comments
b. GAO report on charity care
c. 2007 staff hospital discussion draft
d. Health care reform is wild card
- Revenue-hungry states and localities
a. Property tax challenges
b. Sales tax challenges
- Legal uncertainty as to some cost-savings techniques
a. Gainsharing
b. Electronic health records
- Other challenges
a. Concern with executive compensation
b. Challenges from state AGs, public interest groups, private litigants
c. VSP case
2. Legal Assessment and Analysis
- Determining community need
- Determining amount of community benefit/charity care that organization can provide
- Measuring and documenting community benefit and charity care
- Reporting charity care
- Separating bad debt from charity care
- Charity care policy
- Executive compensation and billing and collection techniques
- Governance/policies in general
- Establishing use of property for property tax purposes
- Other issues
John Valenta, CPA, MBA, Senior Manager, Deloitte & Touche LLP
- Impact of Obama healthcare plan on providers
- Importance of properly reporting bad debt vs. charity care and the impact on community benefit and how it supports tax-exempt status
- Potential for decreased payments to Medicare Advantage organizations and how that may impact providers
- Requirement for providers to optimize revenue through the implementation and maintenance of optimal revenue cycle processes, including those related to contracting,
denials, MS-DRGs and clinical documentation excellence and upcoming RAC audits.
- Healthcare Finance people:
- Controllers,
- CFOs
- Financial Services
- Hospitals
- Lenders
- Tax and Bond people
- Auditors for Healthcare
- Attorneys General Counsel at Hospitals
- Attorneys who specialize in Healthcare Financial
- Attorneys in Health Care
- Corp. Investigators Attorneys
- Rating Agencies
- Consultants & Accountants in the non-profit world
This is a must attend event to anyone interested in having full understanding about the Healthcare Financial.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A