The Lessors Network

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The Lessors Network National Funding and
Syndication Showcase Atlanta, Georgia March 2005
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Overview

• Who We Are
• Our Challenges
• How We Can Work Together

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Overview

• Who We Are
• Umbrella
• State hospital associations
• What We Do
• Advocacy and representation
• Education and research
• Member services
• Business services

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• Disease prevention
• Patient self-education
• Community health assessment
• Social pathology reduction

Comprehensive health resource providing care,
and offering information services and population
health improvement
Broad provider of care offering acute and
non-acute services

• Early detection
• Rehabilitation
• Home care for chronic illness
• Long-term care
• Palliative/end-of-life care

Acute Care Provider
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OUR CHALLENGES
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Forces Increasing Costs
Vacancy Rates for Selected Hospital
Personnel 2003
Source 2004 AHA Survey of Hospital Leaders
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Forces Increasing Costs
Supply vs. Demand for Registered Nurses 2000 -
2020
Demand
Shortageof 800,000nurses by 2020
FTEs (in thousands)
Supply
Source Bureau of Health Professions, National
Center for Health Workforce Analysis, Projected
Supply, Demand, and Shortages of Registered
Nurses 2000 - 2020, released July 2002
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Forces Increasing Costs
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Forces Increasing Costs
Cost per Metropolitan Hospital of Selected
Upgrades for Disaster Readiness
Source Hospital Resources for Disaster
Readiness, AHA, 2001
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Forces Increasing Costs
Estimated Cost of Computerized Physician Order
Entry for a 500-Bed Hospital (in millions of
dollars)
One Time Costs 7.9 Million
Millions of Dollars
Source First Consulting Group
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Forces Increasing Costs
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Forces Increasing Costs
Median Average Age of Plant in Years 1990 - 2002
Source Ingenix, Almanac of Hospital Financial
Operating Indicators 2004
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OUR CHALLENGES
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Forces Decreasing Revenue
Aggregate Hospital Uncompensated Care Costs (in
billions) 1997 - 2002
Source AHA Annual Survey
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Forces Decreasing Revenue
Unfair CompetitionfromPhysician and Investment
Banker Owned Limited Service Facilities
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Forces Decreasing Revenue
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Gross Revenues
Other
Private Pay 43.7
Medicare 40.4
Forces Decreasing Revenue
Medicaid 14.4
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Forces Decreasing Revenue
Percent of Hospitals Losing Money on Medicare
and Medicaid 2003
Source AHA Annual Survey
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Payment Relative to Cost for Medicare and
Medicaid 1997 - 2003
Payment Equal to Cost
Payment as a Percent of Cost
Medicare
Medicaid
Source AHA Annual Survey
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Aggregate Hospital Payment-to-Cost Ratiosfor
Private Payers, Medicare and Medicaid1980 - 2003
Private Payer
Payment as a Percent of Cost
Medicare
Medicaid
Source AHA Annual Survey
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Inpatient Admissions and Outpatient Visits 1990
- 2003
Outpatient Visits
Outpatient Visits (millions)
Admissions (millions)
Inpatient Admissions
Source AHA Annual Survey
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Federal Budget
Other27
Defense 17
Interest10
Medicaid 8
SocialSecurity21
Medicare17
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Presidents Budget

• Medicare
• No reductions
• Medicaid
• Reduction of 20 billionover five years

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Congressional Budget Process

• House
• Medicare 18.6 billion over five years
• Medicaid 20 billion over five years
• Senate
• Medicare no reductions
• Medicaid no reductions

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Next Week

• Conference Committee
• April 15 deadline
• Hospital position

866-887-CARE
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www.protecthealthcare.org

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Coalition Advertising
Robyn Cooke 202/626-2672 rcooke_at_aha.org
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• Washington Insight
• INSIDE THE BELTWAY WITH AHAaudioconferences
  with senior to discuss the latestdevelopments in
  the federal and legislative arenas
• Management Insight
• MEET THE LEADERSsmall focused meetings
  withselect hospital and health system leaders to
  share ideas and discuss changing needs of health
  care organizations
• Market Insight
• CONNECT WITH THE EXPERTSin-depth reports and
  audio conferences on trends and issues shaping
  health policy today
• Focused Insight
• YOUR CONCIERGE SERVICEassistance with your own
  personal information consultant to guide through
  the complex world of health care information

Tony Spohn 312/895-2554 tspohn_at_aha.org
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Our Agenda

• Protecting the Safety Net
• Medicare and Medicaid
• Limited Service Providers
• Improving Care
• Patient safety
• Quality improvement
• Information technology
• Care management
• Increasing Affordability
• Liability reform
• Expanding Coverage

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The Lessors Network National Funding and
Syndication Showcase Atlanta, Georgia March 2005