This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Making Affordable Care Act Patients Profitable

NEW YORK ( TheStreet) - Lindsey Bell: John, the healthcare environment has been tough especially with reimbursement rules that are ever-changing and cost pressures. What are you seeing right now as it relates to those issues, and who is being impacted the most?

John Bardis, CEO, MedAssets:

Well Lindsey, I think we're seeing the beginning of what will be the largest shift of risk in the history of this industry. The federal government now is putting more risk onto U.S. hospitals -- Starting this month readmissions for 3 particular categories of disease: heart failure, pneumonia, and congestive heart failure. Going forward, for any patients who come back to a hospital after having been treated for any one of those disease states under Medicare coverage, the hospital will now not be reimbursed, where historically they have been, and there will be penalties involved.

Lindsey Bell:

And the hospitals already have very small margins as it is. So how is your company helping hospitals and other facilities manage their profitability?

John Bardis, CEO, MedAssets:

We are the predominant cost and clinical management firm for U.S. hospitals, so we do that in a number of different ways. One is that we amalgamate and aggregate procurement for anything and everything that a hospital can buy, and we manage those prices through contracts with major healthcare vendors throughout the world.

We then also measure and manage how product and process is managed within the institutions to deliver case outcomes. And because there are 5,000 different hospitals who can't talk to each other, due to antitrust rules regarding cost and outcome, we take that intellectual property and we share that and spread that across the country in ways that create meaningful cost reductions and meaningful improvements in clinical process.

Lindsey Bell:

One way you also work with hospitals is through your revenue cycle management segment, which is basically your IT business, to dumb it down. That's been growing at a very nice pace. What's driving that? Is it just this move to electronic health records?

John Bardis, CEO, MedAssets:

Well you ask a great question. In fact the answer to that is similar to what we began with, which is the reimbursement and payment environment is changing and has been changing dramatically for some period of time. So as payment is in a state of flux, so is the business process to get the payment right. We assist hospitals using our IT and software solutions to get that payment correct, right? In a way that makes it compliant with what rules of that payer contract are and which at the same time makes it efficient to collect that income.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
MDAS $18.55 0.32%
AAPL $128.54 -0.63%
FB $80.90 1.63%
GOOG $573.37 -0.05%
TSLA $202.44 1.44%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs