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Health care Q&A: Greg Pemberton

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Executive Q & A

Greg Pemberton, a health care attorney at the local law firm Ice Miller LLP specializing in sales and mergers among health care providers, discussed the biggest changes he expects to come out of the federal health reform bills. On Thursday at the downtown Westin hotel, Pemberton and his Ice Miller colleagues will describe how “it’s not going to be business as usual” to about 100 local business leaders at a conference co-sponsored by the Indiana Chamber of Commerce.

IBJ: Assuming something close to the Senate-House health reform bills pass, what will be the biggest change in the law for health care providers?

A: The disruption of so many changes all at once. There are so many changes being mandated in this legislation, it really will by necessity have an impact on the way care is delivered. Probably the single biggest thing the provider community is going to have to do is get ahead of these demonstration projects [such as Medicare paying multiple providers all at once for one episode of care, or refusing to pay for patients readmitted to a hospital shortly after a stay there]. Some of these this time are definitely going to have to be taken seriously because they represent the cutting edge of what the system is moving to next.
 
IBJ: Even after passage, how much of the real impact of these bills would remain “to be determined” by the administrative rule-writing process?

A: There are some areas where rule making is going to be needed to flesh out the details of federal regulation. But in some respects, there is going to be a much larger effect. That will be from benefit design and assistance changes [by private employers]. That’s a very, very volatile market right now. You’ve got to look at what your business model has been, because it’s going to change. It isn’t going to be business as usual.
 
IBJ: Five years after these bills take effect [in either 2013 or 2014] what's the biggest change you expect to see in the Indiana/Indianapolis health care landscape?

A: The safest thing to predict is a consolidation on the provider side, from a business perspective and an operation perspective. With emphasis on hospitals, doctors, home health, long-term care, the entire continuum. During [the] next few years, in the phase-in [of the bills], that’s exactly what providers will do.

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  1. Steak and Shake USED to be a good place to eat, but the now empty parking spaces tell the story of Poor Service, Declining quality of food and just more gimmicks and rear cooking....I used to be a customer, but no more...won't be back...to many other Good Places to eat in INDY...

  2. This man has continued to destroy the Steak and Shake brand. Did he not learn from the sins of owners past. The SNS logo and Brand are strong, I cant understand why he wants to destroy the brand other than to satisfy his big ego.This will turn out to be a big mistake. Sleek new look for a traditional product..makes no logical sense

  3. I mean REALLY!!! What's next taking away the Burger King's crown, turn the golden arches into silver columns? No I know let's get Wendy a pink mohawk.

  4. A couple of thoughts on some of the information presented here from someone with a bit of experience in this area: First, Does anyone remember a time in the past 35 years when insurance premiums DIDN'T increase? They increase every year. The more rigorous rate review requirements of the Affordable Care Act (effective in 2011) have likely caused those increases to moderate as they have averaged below 10% for the past few years, down from much higer averages in prior years. Second, Oregon will operate a state-based Exchange. Recently, they were one of the first states to release their proposed (not yet reviewed by regulators)premium rates -- our first view of Exchange rates. After 2 insurers saw their competitors' rates, they pulled theirs back and re-submitted LOWER rates. In my nearly 10 years as a state insurance regulator, and two years as a federal regulator, I don't ever recall an insurer voluntarily lowering its rates. THAT'S the kind of transparency and competition the online marketplaces (Exchanges) will bring about. 3) ...and this is just a random thought: A big concern among health policy experts is the capacity of the primary care provider community to handle the happy fact that a large number of individuals will be newly-insured under the Affordable Care Act. With the system being stretched so thin for INSURED individuals, It seems highly doubtful that more than a very few "cash-and-carry" physicians will be able to survive in the new, improved healthcare system. Sally McCarty Center on Health Insurance Reform Georgetown University Health Policy Institute

  5. liek the rest of America

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