Marvin Eichorn, a speaker at the marcus evans National Healthcare CFO Summit Spring 2012, on changing the business model of healthcare. Interview with: Marvin Eichorn, Senior Vice President and Chief Financial Officer, Mountain States Health Alliance

1. Mountain States Health Alliance:
Changing
Healthcare Delivery
We are looking at having to operate in improve care and lower costs. If a
an FFS environment which will be healthcare provider reduces total
difficult as all services will become healthcare spending for its patients
unbundled and paid for separately. below the level that the payer expects,
Healthcare CFOs must work towards the provider will be rewarded with a
changing healthcare delivery in the long portion of the savings. The result is that
term; in the meantime, there are the payer will be spending less than
several other efforts that they can usual and the provider will receive more
undertake to ensure efficiency. revenue than usual.
Hospitals are focused on reducing and Capitation involves a Health
eliminating as much as they can, but Maintenance Organization (HMO) paying
that is not the solution. By consolidating a fixed sum per person for a certain
Interview with: Marvin Eichorn, in specific areas, we have had period of time, typically one year. If that
Senior Vice President and Chief phenomenal success in reducing our plan is managed well and there is
Financial Officer, Mountain States supplies expense by eight per cent. By money left over at the end of the year,
Health Alliance implementing real-time software, CFOs then the HMO will profit. If not, they will
can better understand staffing on an have to deal with a loss.
hour-by-hour basis and reduce excess
Times will only get harder for staffing where the volume does not
healthcare Chief Financial Officers support it.
(CFOs) when they will begin operating
in a Fee-For-Service (FFS) environment, There are major efforts underway by There has never
been a more
as all services will be paid for the US government and commercial
separately, says Marvin Eichorn, Senior payers to change the business model of
Vice President and Chief Financial healthcare, which will hopefully bend
Officer, Mountain States Health Alliance.
“To create an affordable healthcare
the c o s t c ur v e . A ll he althc ar e
professionals understand that
challenging time
system, we must work together to
change healthcare delivery,” he adds.
something must be done to lower costs
because the current s ystem is
in the healthcare
A speaker at the upcoming marcus
unsustainable.
industry
evans National Healthcare CFO What payment models will help
Summit Spring 2012, taking place in maximize reimbursement for
Hollywood, Florida, April 26-28, Eichorn services provided?
discusses what healthcare professionals What long-term strategies could
can do to ensure efficiency and move There are two payment models that you share with healthcare CFOs?
towards an improved healthcare could potentially increase revenue: the
system. shared-savings and the global/partial Develop a broad set of skills and
capitation models. continue to work to enhance and
How can healthcare CFOs effectively develop those even further, because
balance the quality of care and The federal government is trying to there has never been a more
costs in today’s economic achieve a shared-savings model that challenging time in the healthcare
environment? supports and rewards those who industry.

2. About the National Healthcare CFO Summit Spring 2012
The Finance Network - marcus
This unique forum will take place at The Westin Diplomat Resort & Spa, Hollywood,
evans Summits group delivers
Florida, April 26-28, 2012. Offering much more than any conference, exhibition or
peer-to-peer information on
trade show, this exclusive meeting will bring together esteemed industry thought
strategic matters, professional
leaders and solution providers to a highly focused and interactive networking event.
trends and breakthrough
The Summit includes presentations on strategies for improving the revenue cycle,
innovations.
preparing for healthcare reform, and being in a position to be able to take
advantage of the impending changes in the healthcare system.
www.healthcare-summit.com
Please note that the Summit is a
Contact
closed business event and the
number of participants strictly Stacey Melvin, Journalist, marcus evans, Summits Division
limited.
Tel: + 357 22 849 400
Email: press@marcusevanscy.com
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About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss
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individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings.
For more information, please visit: www.marcusevans.com
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