As increasing numbers of patients enroll in managed care plans, health care providers are faced with new operational and financial challenges. This article, the fourth in a series on the financial perils of managed care contracting, addresses issues related to diversification of risk and reinsurance.
Last month HCMA began to address the issue of hospitals assuming risk as they become more and more involved in managed care situations. This article continues that discussion. The focus is on capitation contracting, physician-related issues, and a final assessment of the risk that hospitals should and will acquire as they move forward in a heavily managed care environment.
In sum, the most direct route to avoiding burnout in downsizing is to change the philosophy of the department and organization. Narrowly defined jobs cannot persist when positions are being eliminated. Managers need to find ways to accomplish the goals of the hospital within the available financial resources. To gain the staff support and commitment for doing that, the hospital must become much more receptive to seeking advice from the employees themselves on how it can be done.
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