Hospitals Will Have to Change Their Methods to Survive Health Care Reform

The new rules in the Affordable Care Act (ACA) are making hospitals look for ways to reduce costs and prevent duplicate efforts. The ACA moves the payments hospitals receive away from a fee for each service to a reward for keeping patients from returning to the hospital. This change is causing hospital administrators to begin looking for ways to streamline their actions.

This new payment methodology promotes higher-quality hospital treatment and prevents inadvertently subsidizing bad care to increase the hospital's revenue growth. These shifts will transform the hospital landscape by reducing the number of independent small hospitals, and the creation of larger hospital groups that will have more negotiating power with the insurance companies.

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