Medicare A significant portion of hospital revenue comes from the Medicare program. Most providers have actual or potential liabilities back to Medicare. The most common of these are cost report adjustments. All payments received from Medicare are subject to adjustment as the result of the filing of an annual cost report. Failure to address the unique Medicare issues, which are highly technical, can lead to an interruption in cash flow from Medicare, crippling most hospitals.
Suppliers Dealing with suppliers to hospitals is similar to any other restructuring.
Physician Relations Maintaining the confidence and support of the physician community is critical. Whether employed by the hospital or simply privileged to admit, physicians drive volume. Frequently, management of physician relations is a delicate balance because changing physician behavior or remuneration is sure to be a key tenet of the operational turnaround. In the coming months, issues like these will determine the success or failure of many of our hospitals. We should not underestimate them, but neither should we let them overshadow a good restructuring process and a return to fitness for the health care industry.