Author: LBodnarchuk

Critical Regulatory Updates – Medicare Advantage Impacts

Setting the Stage for the 2026 Medicare Advantage Rate Announcement

On April 4th and April 7th, 2025, the Centers for Medicare & Medicaid Services (CMS) released 2026 Medicare Advantage Final Rule and 2026 Final Rate Announcement, respectively. These releases outline critical policy updates and payment adjustments that will shape the present and future of Medicare Advantage plans. The impact of these changes and signals present both a challenge and an opportunity for plans to reassess their strategies and adapt to the new normal.

More than Just the Numbers

CMS finalized a 5.06% increase in Medicare Advantage payments for 2026, amounting to $25 billion in additional plan revenue. Big number. Big headline. But the real story is how CMS continues to evolve its role—not just as a payer but as a regulator, standard-setter and advocate for Medicare enrollees. It’s not just how much CMS is investing in the Medicare program, it’s also about the standards for how the they expect plans to operate.

Star Ratings and Measure Impacts: Few Changes but Signals for What’s to Come

From a Stars perspective, these regulatory updates weren’t the tidal wave that some predicted. There was a notable measure rebrand, formerly the Health Equity Index (HEI). The much-maligned measure has been renamed to Excellent Health Outcomes 4 All (EHO4A). This change is not merely cosmetic but signals CMS’s ongoing commitment to reducing cost to the Medicare Advantage program (the true intention of the Health Equity Index anyway). In addition, the possibility of integrating geography as a social risk factor adds an extra layer of complexity for plans to consider. Plans may soon be required to account for geographic location when measuring and addressing health disparities and outcomes – a major nod to challenges in rural health. This could have a profound impact on how programs are designed and how quality measures are calculated, especially in communities facing systemic health challenges.

Finally, CMS has established official deadlines for plans to review and dispute data:

  • May 30, 2025 – CTM data review deadline
  • June 30, 2025 – Appeals data review deadline
  • May 18, 2026 – Part D Patient Safety data review deadline (SY2027)
  • March 31, 2026 – Deadline for all contracts to request a review of 2025 CTM data (SY2027)

With these fixed deadlines for data review, last-minute efforts to improve measure performance may be a challenge due to time constraints. Plans need to be much more proactive and diligent when reviewing their own data and searching for improvement opportunities.

A New Normal: The Need for Innovation in the Evolving CMS Landscape

The changes outlined in the 2026 Medicare Advantage announcements are more than just policy adjustments—they are part of a broader shift in the healthcare landscape. With figures like Dr. Oz and RFK Jr. now influencing the conversation, it’s clear that CMS is moving in a direction that prioritizes innovation, positive health outcomes, efficiency and adaptability.

CMS also showed strong interest in AI and operational efficiency, suggesting this administration is open to exploring technology’s role in modernizing Stars and other quality programs. The emphasis on the Universal Foundation of core measures—and the potential removal of many operational-style metrics—means plans will also need to focus on clinical outcomes, data capture/interoperability and measurement strategy in areas that matter most.

Plans must take a hard look at how they operate today and prepare to adjust their strategies under this new lens. The healthcare industry is entering a “new normal,” where the plans that succeed will be those that innovate and respond proactively to emerging trends. Those that fail to adapt risk falling behind in a competitive market. The future of Medicare Advantage will belong to innovators who can navigate this shifting terrain, ensuring that they are providing high-quality, outcomes driven care that meets the evolving needs of beneficiaries.

Conclusion: Building for the Future By Assessing Your Present

The Rate Announcement and Final Rule aren’t just technical documents—they’re a glimpse into CMS’s evolving philosophy: tighter guardrails, enhanced beneficiary protections and a firmer hand on program integrity and efficiency. The takeaway should be about building health plan infrastructure that can keep up with the direction that CMS is heading.

So, what should plans be doing now? We’re entering a summer and fall that will be filled with speculation, potential demonstration programs and policy previews that will shape 2027 and beyond. But 2026 is already defined—and it presents a critical opportunity for health plans to re-evaluate their Stars strategy, challenge current assumptions and reimagine how performance, data and member experience come together. At ProspHire, we’re working with clients to assess Stars readiness from every angle and every function—clinical workflows, data infrastructure, provider engagement and more. In this moment of change, everything should be on the table: new partnerships, new technologies and bold innovations that improve performance and drive sustainable results.

If your team is looking to get ahead of these changes and set the foundation for long-term success, let’s talk. At ProspHire, we have the experience and expertise in the Medicare Advantage and Stars space and the frameworks for evaluating plans capabilities and Stars potential. The way we approach our assessments of plans is comprehensive and wholistic, understanding that Stars success is about the entire health plan not just one team. Gaining a better understanding of your present, in order to prepare for the future will enable long-term success. Change is hard, but the work we do today will define your outcomes of tomorrow.

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The 2025 Marketplace Rule: Challenges for Health Plans and Consumers

After the 2026 Final Letter to Issuers was published this January, Issuers likely felt relief that no major changes were in store for the upcoming QHP Certification cycle and 2026 Plan Year. Fast forward to today and the industry is scrambling to digest the 2025 Marketplace Integrity and Affordability Proposed Rule released on March 10th. The proposed rule introduces several changes that could impact ACA Marketplace enrollment and member subsidies.

Barriers to Continued Enrollment

Below are a few of the largest barriers to continued enrollment that members would face under the new Rule:

  • Satisfying Debt for Past Due Premiums
    • Today, Issuers are prohibited from taking a member’s current plan year premium and using it to satisfy a previously unpaid premium. In the proposed rule, this direction would be reversed and members could be forced to pay any outstanding debts on top of their new premium prior to receiving coverage.
  • Eliminating Gross Premium Percentage-Based and Fixed-Dollar Premium Payment Thresholds
    • Health Plans are allowed to set their own payment thresholds prior to marking a member as “delinquent”. Plans have the autonomy to decide if this threshold is a percentage of the gross premium due (prior to subtracting any government subsidies), percentage of net premium or fixed dollar amount. Under this new rule, Plans would only be able to use a net premium percentage threshold.
Gross versus Net Premium payment thresholds for health plans
  • For Example:
    • Gross Premium Percentage Threshold
      • Member Premium = $1,000
      • Federal Subsidy = $950
      • Percentage Threshold = 95% Paid
      •   Member would not become delinquent if they missed a payment as the subsidy would still cover 95% of the bill
    • Net Premium Percentage Threshold with same premium
      • Net Premium = $50
      • Member would have to pay at least $47.50 to avoid delinquency
  • Shortening Annual Open Enrollment Period
    • The new rule proposed shortening the annual open enrollment window by a full month, changing the last day to enroll from January 15th to December 15th.
  • Subsidy Verification
    • Several measures in the proposed rule aim to increase the difficulty for consumers to obtain and keep federal subsidies. Americans living below 400% Poverty Level currently depend on these subsidies to make ACA Marketplace coverage affordable. Under the new rule, these members would face a higher burden of proof for proving income as well as be required to continually respond to redetermination requests. Failure to comply would result in a reduction or loss in subsidies.

In addition to the barriers consumers will face, this new rule would also put a large administrative burden on Marketplaces and Issuers. Interested to hear how Health Plans will be responding to the request for comments on this Proposal.

How ProspHire can help with regulatory changes and optimizing health plans

How Can ProspHire Help?

At ProspHire, we specialize in navigating complex regulatory changes and optimizing health plan operations. Our team of experts can help your organization:

Assess the Financial and Operational Impact – Understand how these rule changes will affect your enrollment, member retention and subsidy compliance.

Develop Compliance Strategies – Ensure your health plan meets the new regulatory requirements while minimizing disruption to members.

Optimize Member Engagement and Retention – Implement solutions that reduce member churn and improve payment processes under the new thresholds.

Streamline Administrative Processes – Enhance efficiency in handling redeterminations, subsidy verifications, and enrollment period changes.

With our deep expertise in ACA Marketplace strategy, risk adjustment and quality performance, we’re here to help you stay ahead of the curve. Let’s connect to discuss how your health plan can proactively adapt to these changes.

The Future of Telehealth: How Medicare Changes Could Impact Access, Satisfaction and Star Ratings

Beginning April 1, 2025, Medicare beneficiaries could face reduced telehealth coverage as the temporary flexibilities introduced during the COVID-19 pandemic expire, unless extensions are approved. These waivers, which allowed expanded access to telehealth services, will no longer be in effect. This shift could lead to access challenges for Medicare beneficiaries, especially those in rural or underserved areas.

A decline in telehealth services could lower beneficiary satisfaction, reduce access to care, significantly impacting key CAHPS measures, hinder gap closure efforts and ultimately overall Star Ratings in some cases.

Changes in telehealth and how it impacts the healthcare industry

Impact on Star Ratings

Telehealth Services and HEDIS Performance

The reduction of telehealth coverage for Medicare beneficiaries would directly impact a beneficiaries’ access to care, making it harder for health plans to manage their health. This could lead to delayed chronic condition management and inadequate follow up care, all of which could lower Medicare Star ratings due to poor HEDIS performance. Without telehealth, many beneficiaries may face difficulty accessing these services, leading to unaddressed care gaps and lower performance across multiple HEDIS measures.

The impact of Medicare changes on HEDIS performance, beneficiary experience, and access challenges

Beneficiary Experience CAHPs Impacts

The elimination of telehealth services could potentially lead to beneficiary dissatisfaction and ultimately negatively impact a plan’s overall CAHPs rating due to the following reasons:

  • Loss of Convenience, Flexibility and Accessibility: Telehealth has provided beneficiaries with flexible, convenient care regardless of location. Its removal forces in-person visits, which may be inaccessible due to distance, transportation, finances, work, caregiving or other barriers.
  • Longer Wait Times and Delays: Without telehealth, provider availability may become more limited, resulting in longer wait times for appointments. This can cause frustration among beneficiaries seeking timely medical attention.
  • Quality of Care Perceptions: Beneficiaries who turned to telehealth for routine care, follow up appointments and chronic condition management may feel their care has been downgraded, reducing their satisfaction with the health plan.
Actions to take for health plans after Medicare changes

Actions for Health Plans to Take Today

  • Scenario Modeling: Health plans should assess the number of beneficiaries relying on telehealth services to close gaps in HEDIS measures. Gaps that were not closed already may not be closed during the remainder of the year and therefore multiple scenarios should be developed for assessing risk.
  • Outreach to Impacted Beneficiaries: Health plans should identify beneficiaries who have used telehealth services and proactively reach out to inform them of the upcoming changes. Additionally, they should support beneficiaries in finding alternative care options that best meet their individual needs.

While there is a possibility that the legislation will be extended and telehealth access will continue, it is essential to fully understand the potential implications for your plan. Being proactive and strategically preparing for any changes will ensure you can adapt smoothly and make informed decisions with confidence.


DISCLAIMER:
There are currently drafted continuing resolutions to extend waivers through the end of September 2025. If the extension is not approved, certain exceptions will still allow Medicare members to access telehealth, including those based on geographic location and behavioral health needs.


How ProspHire Can Help

Unlock the full potential of telehealth while optimizing your Stars Performance. Partner with ProspHire and Andrew Bell to navigate the complexities with confidence. Let’s drive measurable results together – reach out today

Navigating the Implications of Proposed Changes to GLP-1 Medication Coverage

Changes to GLP-1 Medication Coverage

The Centers for Medicare & Medicaid Services (CMS) has proposed changes to Medicare and Medicaid coverage for glucagon-like peptide-1 (GLP-1) medications, which are currently covered primarily for the treatment of type 2 diabetes. These medications have also gained attention for their effectiveness in managing obesity, although coverage for weight loss remains limited under Medicare and Medicaid today. The intent of this change is to drive improved health outcomes, which could have substantial benefits and downstream impacts, but if enacted, the proposed changes will expand coverage criteria, significantly impacting health plans in quick time.

Evolving CMS Policy on Anti-Obesity Medications

Historically, Medicare Part D excluded coverage for weight loss drugs under a statutory provision allowing Medicaid programs to do the same. CMS reinforced this stance in 2008, clarifying that even non-cosmetic weight loss agents were ineligible for Part D coverage. However, exceptions were made for medications treating conditions like AIDS wasting and cachexia, recognizing their broader therapeutic benefits.

The emergence of GLP-1 drugs, such as Ozempic and Wegovy, has challenged this framework. While originally approved for type 2 diabetes and cardiovascular disease, these drugs have demonstrated significant efficacy for weight loss, fueling public demand and legislative proposals to expand coverage. Medicare already covers GLP-1s for non-weight-loss indications, with spending on Ozempic alone reaching $4.6 billion in 2022. Medicaid policies vary by state, with 13 states covering GLP-1s for obesity as of August 2024.

In response, CMS has proposed a reinterpretation of the statutory exclusion, distinguishing between drugs “used for weight loss” and those “used for the treatment of obesity.” This shift would allow Part D and state Medicaid coverage for anti-obesity medications (AOMs) prescribed specifically for obesity.

The projected financial impacts of GLP-1 coverage expansion

Financial Impacts at Federal and State Levels

Federal Level

  • Increased Spending: Medicare spending on GLP-1 medications could rise by $24–$37 billion over the next several years, depending on the breadth of the coverage expansion and member uptake rates. Medicaid spending could see increases of an estimated $15 billion over the next decade, with significant variability by state.
  • Cost Offsets: Studies suggest GLP-1 medications can reduce healthcare costs for diabetes-related complications by 20%–30% annually per member. However, it may take several years for these savings to offset initial spending increases.

State Level

  • Medicaid Budgets: States with high obesity and diabetes prevalence, such as Mississippi and West Virginia, could face disproportionate budget impacts, with projected increases in Medicaid drug spending annually.
  • State Supplemental Rebates: States may need to renegotiate rebate agreements, with some states potentially achieving savings of up to 15% on GLP-1 medication costs through innovative pricing models such as outcomes-based contracts.

Anticipated Utilization Increases

  • Expanded Eligibility: Coverage for obesity treatment could lead to a 40%–60% increase in GLP-1 utilization over the first two years, with an estimated 1.5–2.5 million additional beneficiaries initiating therapy annually across Medicare and Medicaid. An estimated 3.4 million Medicare beneficiaries and 4 million Medicaid beneficiaries could benefit.
  • Chronic Disease Management: Increased use of GLP-1 medications may reduce the incidence of diabetes-related hospitalizations by 10%–15% and cardiovascular events by up to 20%, improving long-term population health outcomes.
  • Provider Demand: Endocrinologists, dietitians and primary care physicians may experience appointment volume increases as patients seek guidance and prescriptions for GLP-1 therapies.
GLP-1 cost impacts on health plans

Cost Impacts to Health Plans

  • Rising Pharmacy Costs: Health plans could face a 20%–35% increase in overall pharmacy spending for members with diabetes or obesity.
  • Formulary Management: Expanding coverage criteria will require plans to refine formularies, potentially increasing formulary-related administrative costs.
  • Risk Adjustment: Accurate coding and risk adjustment will become critical, with plans needing to account for increased annual GLP-1 costs per member.

Operational Impacts

  • Care Management Programs: Plans must scale care management programs to handle up to 30% more members receiving GLP-1 prescriptions, requiring investment in digital tools and personnel.
  • Prior Authorization Processes: Prior authorization requests for GLP-1 medications may double, prompting the need for enhanced automation and workflow efficiency.
  • Member Communication: Plans must prepare targeted outreach campaigns members potentially eligible for expanded GLP-1 coverage.
  • Provider Networks: Expanding network capacity to manage increased GLP-1 demand could require adding providers in key specialties like endocrinology and primary care.
How ProspHire supports health plans in navigating GLP-1 coverage expansion

How ProspHire Can Help

ProspHire brings expertise in navigating regulatory changes and optimizing health plan operations. We offer:

  • Financial Impact Analysis: Forecasting cost impacts and developing mitigation strategies.
  • Formulary Strategy: Supporting formulary adjustments to balance compliance and cost containment.
  • Utilization Management: Designing efficient prior authorization and care management processes tailored to GLP-1 medications.
  • Stakeholder Engagement: Building robust communication frameworks for members, providers and regulatory bodies.

With ProspHire’s guidance, health plans can navigate the complexities of CMS’s proposed changes with confidence, ensuring financial sustainability while delivering improved member outcomes.

References

Proposed Rule Would Expand Medicare And Medicaid Coverage For Anti-Obesity Medications | Health Affairs
CMS’s $40B GLP-1 Proposal Offers Leeway for Part D Plans to Define Obe – AIS Health – MMIT
Medicare & Medicaid Services CMS Proposes Changes to Medicare Adv
Biden administration proposes Medicare coverage for weight loss drugs: 10 things to know

Harnessing AI for Transformation in Health Insurance: Revolutionizing Efficiency, Accuracy and Customer Experience

In recent years, the health insurance industry has witnessed a profound shift towards harnessing artificial intelligence (AI) to streamline operations and enhance service delivery. At ProspHire, we are at the forefront of this transformative wave, leveraging AI-enabled process reengineering to drive unprecedented improvements in efficiency, accuracy and customer experience.

How AI is revolutionizing health insurance

Enhanced Efficiency Through AI

AI’s ability to analyze vast amounts of data with speed and precision has revolutionized how health insurers manage administrative processes. Tasks that once consumed valuable time and resources are now automated, allowing teams to focus on more strategic initiatives. Whether it’s claims processing, member enrollment or provider management, AI has optimized workflows, reduced operational costs and accelerated decision-making processes.

AI's role in risk and fraud prevention in healthcare

Precision and Accuracy in Decision-Making

The accuracy of decisions in health insurance is paramount. AI algorithms, trained on historical data and equipped with machine learning capabilities, have significantly enhanced the accuracy of risk assessments, fraud detection and claims adjudication. This precision not only minimizes errors but also improves compliance with regulatory requirements, ensuring that insurers can confidently deliver on their promises to stakeholders.

Elevating Consumer Experience

Consumer expectations in healthcare are evolving, demanding personalized experiences and seamless interactions with insurers. AI-powered tools, such as chatbots and predictive analytics, enable proactive customer engagement, personalized recommendations and real-time support. By understanding consumer behaviors and preferences, insurers can tailor their services, anticipate needs and enhance overall satisfaction.

The Future of AI in Health Insurance

Looking ahead, AI’s role in health insurance will continue to expand. From predictive modeling for disease management to optimizing network management and beyond, AI promises to unlock new opportunities for innovation and efficiency. At ProspHire, we remain committed to driving this transformation, empowering insurers to navigate complexities and deliver exceptional value to their stakeholders.

In conclusion, AI-enabled process reengineering represents more than a technological advancement—it is a catalyst for profound industry-wide transformation. As we embrace AI at ProspHire, we are excited about the possibilities it brings to revolutionize the health insurance landscape, ensuring sustainable growth and improved outcomes for all.

How Can ProspHire Help?

How can ProspHire help?

At ProspHire, we specialize in helping health insurers leverage AI-driven process reengineering to maximize efficiency, improve accuracy, and enhance customer engagement. Our expert consultants bring deep industry knowledge and technical expertise to ensure a seamless AI integration that aligns with your strategic goals.

AI Strategy & Implementation – We assess your current processes and develop AI-driven solutions tailored to your needs.
Operational Efficiency Optimization – Our team helps automate manual workflows, reducing costs and improving productivity.
Advanced Analytics & Risk Management – We implement AI-driven risk assessment models to enhance error detection and compliance.
Customer-Centric AI Solutions – We enable personalized customer interactions and improved retention. By partnering with ProspHire, health insurers can confidently navigate AI transformation, unlocking new efficiencies and delivering superior member experiences. Let’s shape the future of health insurance together!

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Compliance in Healthcare: Navigating Regulatory Changes and Their Impact

Healthcare faces constant scrutiny due to ever-changing industry regulations. Healthcare compliance necessitates adherence to ethical, legal and professional standards. These regulations increase patient and consumer safety by preventing abuse, fraud and waste. A strong culture of compliance is a proactive and continuous commitment to not only meeting regulatory requirements but also safeguarding the organization’s reputation and fostering ethical conduct.

Healthcare providers and insurers must stay ahead of evolving regulations and develop strong compliance strategies. Noncompliance can result in penalties, license revocation, sanctions, business cessation and patient and consumer risks.

This guide explores key regulatory changes and how organizations can ensure compliance.

The importance of regulatory compliance in healthcare

The Importance of Regulatory Compliance in the Healthcare Industry

Regulatory compliance in healthcare is essential because it ensures safe, quality patient care. Healthcare regulations apply to all healthcare enterprises, including hospitals, practices, insurers and pharmacies. Complying with healthcare regulations is critical for the following reasons:

  • Avoids legal risks: Healthcare organizations must adhere to local, state and federal laws. Legal violations can lead to patient lawsuits or imprisonment.
  • Improves patient care: Regulations set safety and infection control measures for patient safety.
  • Ensures protected health information (PHI): Medical records contain patients’ sensitive data. Healthcare institutions must follow privacy and security standards to prevent unauthorized access. 
  • Enhances reputation: Adhering to best practices enhances an organization’s trustworthiness and reputation.
  • Prevents financial loss: The cost of noncompliance is higher than imposed fines. Sanctions or license revocation can cause service disruption that impacts revenue.
Key regulatory bodies governing healthcare compliance

Significant Healthcare Regulatory Bodies

Key regulatory bodies govern healthcare industry standards. These include the following:

  • The Health Insurance Portability and Accountability Act of 1996 (HIPAA): The U.S. Department of Health and Human Services (HHS) established HIPAA to legislate standards for protecting sensitive health information. HIPAA’s Privacy Rule prohibits the disclosure of PHI without patient consent.
  • Health Information Technology for Economic and Clinical Health (HITECH) Act: This act is part of the American Recovery and Reinvestment Act (ARRA). It incentivizes providers to adopt electronic health records (EHRs). The act requires healthcare organizations to report data breaches in support of HIPAA’s Privacy Rule.
  • Centers for Medicare & Medicaid Services (CMS): Regulates Medicare, Medicaid and related policies.
  • Food and Drug Administration (FDA): Ensures the safety of medical devices, drugs, and food.
  • Occupational Safety and Health Administration (OSHA): OSHA governs safe and healthy working conditions for healthcare workers and other employees. Healthcare workers face unique safety hazards. OSHA enforces standards around biological waste, chemical exposure and bloodborne pathogens.
  • State Insurance Commissions and Inspectors General regulate and oversee healthcare and insurance markets, as well as related policies, to enhance the efficiency and integrity of healthcare programs.

Fundamental Regulatory Changes Affecting Healthcare Organizations

Recent changes in healthcare regulations address healthcare transactions. Many changes in the first quarter of 2024 focused on healthcare transactions. Noteworthy developments include:

Transaction Review Laws

States have adopted healthcare transaction legislation on access, quality, competition and need impacts. The definition of “material transactions” may differ depending on the state.

Healthcare transaction review laws require:

  • Prior approval for some transactions based on due diligence.
  • Long timelines for the relevant bodies to review transactions.
  • Consideration of proposed transaction cost, competition, access and equity.
  • Transparency on all aspects of a healthcare transaction, including divulging all parties involved.

CMS Broker Rule and 80/20 Rule

In April 2024, CMS published the Medicare Advantage and Part D Final Rule. The rule increased guardrails in many programs, including the Medicare Advantage and Cost Plan. Part of the rule included a cap on broker compensation. This limit prevents brokers from guiding patients to specific plans for financial incentives.  

CMS released the Ensuring Access to Medicaid Services Final Rule. The rule states that 80% of Medicaid payments for home health services must go to care workers instead of overheads or profit.

Laboratory-Developed Tests Final Rule

Another legislative release in April 2024 was the FDA’s final rule on laboratory-developed tests (LDTs). LDTs are diagnostic tests developed and validated in-house by laboratories. The regulation amends in vitro diagnostic (IVD) products to fall under the Federal Food, Drug, and Cosmetic (FD&C) Act. This amendment phases out the FDA’s previous approach of discretion. It aims to ensure that LDTs are safe and effective for clinical use.

Evolving Telehealth Regulations

Since the COVID-19 pandemic, telehealth has shifted from a secondary to a primary healthcare choice. Regulations have risen to meet this shift:

  1. Service expansion: Congress passed the Preserving Telehealth, Hospital and Ambulance Access Act (H.R. 8261), extending telehealth services through 2026.
  2. Payment parity: Some states require insurers to reimburse telehealth at the same rate as in-person visits. This differs from service parity, which requires the same services for in-person and telehealth.
  3. Licensure: States have specific regulations for providing telehealth services across state lines. Some, such as California, have exceptions, such as treatment for life-threatening illnesses. Other states, like Florida, have registration processes for external providers.
  4. FDA guidelines: The FDA established regulations on wearable patient monitoring devices and telehealth software. 

Updates to Privacy and Security Rules

Proposed changes to HIPAA’s Privacy Rule are imminent. The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) reviews and enforces HIPAA rules.

Here are some of the highlights of the proposed changes:

  • Patients can view and take photos of their PHI in person.
  • Covered entities may send electronic protected health information (ePHI) to personal health applications at a patient’s request.
  • Organizations must provide fee estimates for providing patients with PHI copies.
  • “Healthcare operations” will expand to include case coordination and care management.
  • Once published, organizations must update policies and train employees on new privacy laws.

Importance of Quality Metrics

It’s easier for healthcare providers to report compliance using accurate quality measures. The Institute of Medicine (IOM) Quality Framework quantifies quality in six domains:

  1. Safe: Prioritizing patient safety in care and service delivery
  2. Effective: Allocating care to those who need it and refraining from misuse
  3. Patient-centered: Considering the patient’s needs in all care decisions
  4. Timely: Preventing delays or lengthy wait times
  5. Efficient: Using resources in a way that avoids waste
  6. Equitable: Equal care provided regardless of demographics or socioeconomic status

These metrics help healthcare entities ensure quality and meet changing regulations.

The impact of regulatory changes in the healthcare landscape

The Impact of Regulatory Changes in the Healthcare Landscape

Each regulatory change brings unique challenges and opportunities to healthcare. Organizations must adapt or risk noncompliance.

Challenges Posed by Changes

Shifting regulations can pose obstacles for healthcare providers, including:

  • High compliance costs: Adapting to changing regulations can mean spending funds on new systems, training or data handling.
  • Administrative burden: Updating policies, procedures or practices requires time and administrative effort.
  • Service impact: Evolving healthcare standards can impact the services offered. The COVID-19 pandemic increased the use of telehealth and virtual consultations.
  • Noncompliance penalties: Organizations may face fines or lost business due to brand damage.
  • Pricing revisions: Regulations may require changes to pricing strategies. Healthcare organizations with Medicare patients must account for changing Medicare reimbursement rates.
  • Increased risk management: New standards introduce compliance, financial and operational risks. The shift to value-based care models in the U.S. requires healthcare providers to prioritize care quality over volume.
  • Staff training: Healthcare employees need ongoing training to keep updated with regulatory changes. Training involves costs and operational disruption.
  • Technology adoption: Regulations mandate technologies like EHRs (HITECH) and data security measures (HIPAA). To comply, healthcare organizations must adopt these technologies. New systems come at an expense and require training.

Opportunities Created by Changes

If healthcare organizations can navigate the obstacles, changing regulations present significant opportunities:

  • Improved patient care: Complying with regulations increases patient safety and satisfaction. Strict controls mean lower infection rates with better quality care.
  • Enhanced data security: Data privacy laws lower breach risks, safeguarding patients and organizations. Security measures restrict unauthorized access.
  • Competitive advantage: Effective compliance makes healthcare organizations stand out from competitors. Regulations level the playing field. Providers who use sneaky practices to win patients risk the consequences.
  • Streamlined operations: Advanced healthcare technology can increase efficiency, boost productivity and reduce errors.
  • New revenue opportunities: Expanding services can create additional revenue streams for practices.
  • Increased brand reputation: Following compliance and ethical best practices enhances brand reputation. Compliant healthcare organizations that provide high-quality care gain more patient trust.
  • Collaboration benefits: Regulations can foster partnerships with entities like EHR compliance-focused IT firms. These partnerships offer knowledge not available internally. Collaboration can open up new markets and make it easier to adapt to regulatory changes.

How to Create an Effective Compliance Program

A compliance program is a set of policies and processes to ensure healthcare organizations follow relevant laws. This program helps prevent, detect and correct regulatory noncompliance.

Follow these best practices for a successful compliance program:

1. Establish Procedures, Policies and Conduct Standards

The first step in creating a compliance program is identifying which regulations apply. The second step is evaluating the existing compliance measures. Following this assessment, formulate a plan to address any gaps. Policies and procedures establish guidelines for compliance. They should be straightforward, easy to understand and communicated to all staff. Below are examples of what to include:

  • Compliance responsibilities: Outline roles for compliance officers, the compliance committee, management and staff.
  • Program structure: Describe the program’s operations, including reporting procedures, compliance resolutions and monitoring.
  • Success measures: Determine methods to measure program effectiveness.

2. Assign a Compliance Officer and Committee

HIPAA regulations mandate healthcare providers to appoint a privacy officer. The compliance officer ensures the organization complies with internal and external standards. A compliance committee of individuals with diverse backgrounds supports the officer. The compliance officer and committee administer the program together. They should hold regular meetings to discuss regulation updates, reporting and compliance enforcement.

3. Train and Educate Staff

All healthcare staff must receive continuous training on compliance and regulatory updates. HIPAA’s Privacy Rule mandates training staff on policies, procedures and security awareness. This education ensures staff and management understand expectations and codes of conduct. Any vendors or associated partners should also understand compliance standards.

4. Develop a Communication Strategy

Creating open channels of communication is essential for both top-down and bottom-up communication. This way, staff remain aware of regulation updates and can report compliance issues.

A strong communication plan should include:

  • The process for reporting compliance issues.
  • Methods for anonymous reporting, such as a hotline.
  • A log for reported compliance issues.

5. Monitor and Audit

A healthcare compliance program doesn’t mean automatic compliance. Regular program assessments ensure compliance with the relevant laws, rules and regulations. Monitoring and auditing serve different objectives:

  • Monitoring: Internal reviews assess procedure effectiveness and identify potential issues. Problems uncovered while monitoring may lead to an audit for further investigation.
  • Auditing: This process involves deep-diving into specific areas of concern and using measures to assess compliance. An audit looks into how or why issues occur.

The U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) established a work plan indicating potential risks. Adding these areas can help organizations address HHS-OIG priority risks.

6. Enforce Standards Through Sanctions

Healthcare organizations must enforce compliance violations or noncompliant behavior through appropriate disciplinary measures. The consequences must be consistent and well-communicated. A disciplinary policy detailing transgression mechanisms must be accessible to all staff.

7. Respond Fast and Take Corrective Action

Prompt responses and corrective actions address ineffective policies, compliance violations or data breaches. Quick correction of identified issues can prevent penalties or legal action. Corrective actions may include disciplinary action, overpayment recovery or policy updates.

8. Stay Informed About Regulatory Updates

Keeping updated on the latest trends and changes helps keep your organization compliant.

Several tips to stay informed include:

  • Subscribe to regulatory body newsletters, like the HIPAA Journal, or set up Google Alerts for specific regulations.
  • Network with industry professionals at conferences, webinars or on social media platforms.
  • Consult with compliance experts, whether internal or external.
  • Leverage technology such as Governance, Risk and Compliance (GRC) or data security tools.

Why Trust ProspHire for Healthcare Regulatory Compliance?

ProspHire’s sole focus is healthcare. Since 2015, we have built a team of experts experienced in both public and private healthcare. With our extensive industry knowledge, we help our healthcare clients meet regulatory changes. Our areas of expertise include Medicaid practice, ACA planning, dental practice management and Stars performance improvement.

A recent example illustrates our compliance expertise. A large Pennsylvania managed care organization (MCO) had to achieve CMS document compliance. ProspHire assessed existing processes, established formal governance and implemented an operating model. We developed a Required Documents Program and Program Toolkit that defined processes. The result? The client achieved document compliance, saved costs and satisfied members. 

Let ProspHire Help You Meet Regulatory Requirements

Healthcare organizations can find it challenging to stay updated with changing regulations. At ProspHire, healthcare is our passion. Our team anticipates healthcare regulation changes to offer effective compliance strategies. We customize our solutions to meet your organization’s unique needs.

There’s a reason ProspHire has appeared on Inc. Magazine’s annual list of America’s Fastest-Growing Private Companies five years in a row. Our people-first culture and exceptional customer service drive our continuous growth.

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Emerging Technology to Streamline Project Delivery for Healthcare Organizations

Many healthcare organizations implement technology to enhance patient care or consumer engagement. However, implementing new technology is also a powerful strategy for improving operational efficiency, streamlining project delivery and prioritizing collaboration. These improvements can lead to cost savings and more satisfied patients, making technology a worthwhile investment.

Read on to discover various emerging technologies within healthcare that can help your business complete projects, stay competitive and provide quality care.

What Is Project Delivery in Healthcare?

Healthcare project delivery refers to planning and executing projects for healthcare organizations. Projects can include initiatives that improve facilities, processes, technology, systems and services. The goal of project delivery is to implement projects that modernize your business, improve communications and decision making, improve quality and timeliness and help you provide improved patient care.

Successful project delivery can streamline business operations, reduce compliance risk, save employees time, improve service offerings and provide quality care to patients. However, the success of a project lies in its implementation. With the right tools and processes, you can deliver projects on time, within budget and with minimal disruptions. Technology is a key factor in achieving this outcome.

Current challenges in project delivery for healthcare providers

Current Challenges in Project Delivery for Healthcare Providers

Despite the necessity and benefits of healthcare projects, businesses often face many challenges throughout the project delivery process. Some of these include:

  • Project complexity: The sheer scale and scope of some healthcare projects can make delivery challenging. Miscommunication can happen when coordinating various departments, resulting in delays and failure to meet project objectives.
  • Regulatory compliance: During project delivery, healthcare providers must comply with rules, regulations and standards. The number of regulations and how often they change make staying compliant challenging.
  • Stakeholder coordination: Healthcare providers must receive buy-in from several stakeholders before beginning a project. Managing each stakeholder’s expectations and coordinating with them throughout project delivery can be difficult.
  • Budget constraints: Healthcare projects often have large budgets and resource requirements. Acquiring funds and allocating sufficient resources for projects are two of the biggest project delivery challenges.
  • Need for data: Project success often relies on the collection of accurate and timely data. Without it, tracking project progress and determining goal alignment becomes a challenge. Outdated systems and technology are often to blame for data issues.

Emerging Technologies in Healthcare

Emerging technology is any technological innovation that is gaining traction but has yet to realize its full potential. This includes current and old technology that people are discovering new applications for. Your business can take advantage of the following emerging technologies to overcome project delivery challenges and streamline project management.

1. Telemedicine and Telehealth

Telehealth broadly refers to remote health services that use communication technology to enable long-distance provider and patient contact. A subsection of telehealth is telemedicine, which doctors use to provide virtual care to patients. Telemedicine and telehealth are revolutionary for patient care, as patients can receive medical services regardless of bad weather, mobility limitations, poor access to healthcare and other obstacles. 

Telehealth technology and software make offering patients remote services a breeze. This technology allows your staff to collaborate and work from various locations. It can speed up administrative processes related to these services, saving them time. Most telehealth software also includes integrated data management tools. Staff can quickly collect and analyze essential patient information, and patients can access a portal to view their important information quickly and easily. 

Telehealth also allows specialized physicians to connect with and assess patients who may be experiencing a medical emergency. For example, neurologists from around the country use telehealth to assess possible stroke patients quickly and efficiently without making them wait for a physician to be available in person.

2. Artificial Intelligence and Machine Learning

AI and ML solutions can provide analysis to aid in predicting healthcare needs and trends.

Artificial intelligence (AI) can simulate human thought processes. It encompasses various subsets, including generative AI and machine learning (ML). AI is most beneficial in healthcare for quickly analyzing large data sets that would previously take a long time to assess. The time savings alone help healthcare providers reduce the administrative burden on staff and encourage them to use data to make more informed decisions.

AI is also beneficial for project delivery. Most AI and ML solutions can analyze historical data and provide accurate predictive analytics. Predictive analytics allow you to predict future events or trends, such as staffing needs, patient admissions and resource utilization. With this information, you can identify and address project delivery challenges or disruptions before they occur.

3. Project Management Software

Project management software is a must for healthcare project delivery. This software is designed to make creating project plans, managing resources and tracking progress simple. Most project management software provides a centralized place for project timelines, tasks, budgets and objectives. With everything in one place, all stakeholders have access to the same up-to-date project information.

Project management software often has built-in communication tools that facilitate team collaboration and prevent human error related to communicating with various providers. Improved communication and collaboration can eliminate confusion, reduce conflict and increase the chances of project success. 

Software can often integrate seamlessly with other healthcare systems to enable seamless data transfer and streamline workflows.

4. Internet of Medical Things and Wearable Technology

The Internet of Medical Things (IoMT) refers to medical devices — with sensors and software — that collect data and communicate with each other over a network. IoMT often refers to wearable devices patients can use to track health and fitness data. The device can send this data to a patient’s healthcare provider, allowing them to monitor their health remotely

For example, some devices can monitor irregular heart rhythms to decrease hospital stay and help prevent readmission. Wearable devices can also be used in hospital settings to assess a patient’s vital signs and automatically upload them to their chart. This saves time and allows for closer monitoring.

Beyond patient monitoring, healthcare providers can also use IoMT devices to manage resources. Smart devices can attach to medical equipment and other resources, allowing you to track their status and location. Having access to real-time patient and resource data is pivotal to project delivery. It enables staff to make informed decisions quickly, increasing efficiency and reducing the chance of mistakes that often derail project timelines.

5. Electronic Medical Records

Gone are the days of physical medical records. Today, healthcare professionals can use electronic medical records (EMRs) — also called electronic health records (EHRs) — to record and store patient data in the cloud. In addition to saving staff time, EMRs protect patient data and help practices comply with privacy laws. 

The digitization of health records benefits patients because it means their information is readily accessible and sharable, which can contribute to more accurate and timely diagnoses. For healthcare providers, EHRs are vital to efficiency and on-time project delivery. Having easy access to data allows staff to easily create, access and share patient information. Digital health records can also integrate with other systems, improving workflow, cross-departmental communication and care delivery.

Why Trust ProspHire to Implement New Technology?

ProspHire is a leading national management consulting firm dedicated to transforming healthcare businesses. We specialize in optimizing project delivery and implementing new technology. Our team consists of certified Project Management Professionals, Six Sigma Green Belts, Scrum Masters and Product Owners. We’ll work closely with your business and its stakeholders to understand expectations, tackle operational challenges and meet long-term goals.

Don’t just take our word for it — check out what our clients have to say. One of our clients recently required assistance with their care management system. Their old system involved manual processes that were time-consuming and inefficient. The ProspHire team conducted a current state assessment and collaborated with key stakeholders to establish the requirements for a new care management system.

Our partnership resulted in their first multistate clinical software platform. Thanks to automated workflows, enhanced analytics and a better member experience, they saw improvements in their overall efficiency.

Contact ProspHire Today!

Collaborate With ProspHire Today

We work tirelessly to provide consistent and reliable results for all our clients and look forward to doing the same for your business. If you’re ready to implement new technologies and achieve your organizational goals, fill in our online contact form. A member of our team will be in touch to discuss your requirements further.

Linked Sources

https://www.prosphire.com/blog/the-importance-of-project-management-in-healthcare-5-methodologies-explained/

https://www.prosphire.com/blog/tips-for-improving-operational-efficiency/

https://www.prosphire.com/services/government-markets-required-documents/

https://www.fcc.gov/general/telehealth-telemedicine-and-telecare-whats-what

https://www.iso.org/artificial-intelligence/what-is-ai

https://www.prosphire.com/blog/the-importance-of-system-integration-in-healthcare/

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https://www.prosphire.com/projectdelivery/

https://www.prosphire.com/client-result/transforming-care-management-from-manual-processes-to-streamlined-efficiency/

https://www.prosphire.com/contact-us/