California Sutter Health Case Study

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Chantra Horton ACC281 Accounting Concepts for Health Care Professional The California Sutter Health Approach Mark Strictlett January 30, 2012 An increasing issue within the health care field is the inability to collect debt from the growing population of uninsured or underinsured patients. Health care organizations may be struggling to meet operational margins because the industry has never treated its customers like other retail- oriented sectors of the economy. Hospitals incur sixty billion dollars in bad debt annually because the typically collect only ten to twenty percent of a total uninsured patient balance after service. This is due to a number of reasons, including poor accounting practices, or a lack of patient information.…show more content…
They also commit to providing great value as opposed to being the least experience provider of any particular services that are affordable. California Sutter has also made significant strides by holding their annual overall average price increases for health plans to single digits in the past several years. Sutter Health also continues to implement more efficient ways to deliver their services, conserve their limited resources and spend wisely. The integrated approach has increased the quality of care provided by our physicians and hospitals and will continue to help make their services more affordable. From personal experience I am glad to see Sutter have record levels of care and services for the poor and underserved and other benefits for the broader community. I have had Blue Cross Blue Shield for years and the payments have been outrageous and they are steady going up. As the years go by I see an improvement on making the quality of care affordable. One way they are working to make quality health care affordable is by changing how they pay for the health care services the members receive. For so many years they have paid doctors and hospitals a fee for every test, procedure or other service they perform. It rewards the quality of care, but not better care. I believe the doctors and hospitals should be paid for the quality and outcome of patients’ care. The new approach to paying for health care promotes improves patient care and slows the rise in health care costs. The Alternative Quality Contract (AQC), doctors and hospitals are paid for the quality, not just the quantity of the care they provide to the members. It rewards the doctors and hospitals for keeping patients healthy and for effectively managing chronic
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