Situation: Client interested in acquiring a free-standing physician practice requested a financial impact analysis comparing and contrasting conversion of the practice to PBRHC status.
Approach: A hospital cost report based financial model was prepared as a baseline for estimating the change in reimbursement as well as the allowable costs used to calculate Medicare and Medicaid reimbursement. Utilization, payer mix, and average reimbursement were analyzed for a three-year period.
Solution: A significant positive impact related to the ability to increase service delivery with a mid-level practitioner was determined. Stroudwater recommended the client and the physician practice continue to explore the prospect of converting the practice to PPBHRC status.
Result: The client is currently in discussions with the practice to acquire it and to move towards PBRHC status.