FEBRUARY

2016

Acute Med-Surg Supply Budgets Projected To Rise Nearly 60% of professionals who influence hospital and health system supply purchasing decisions anticipate budget increases over the next year, according to HIDA’s newest Acute Care Market Survey. Provider executives are looking at several expansion strategies to fund this growth, as well as cost-cutting tactics such as implementing LEAN work plans and partnering with others to increase purchasing power. The Market Survey captures important hospital supply chain behaviors and trends, particularly as they relate to distribution. To access the results, visit www.HIDA.org/AcuteSurvey, or contact Gina Smith (GSmith@hida.org) for more information.

Consolidation Cloud Hangs Over Independent Hospitals As multi-hospital health systems continue to invest billions in IT and other growth areas, local independent hospitals will likely consolidate with these systems to remain viable over the next decade. Ion Skillrud, Deloitte Consulting, offered this and several other insights about the changing healthcare landscape at HIDA’s recent IDN-Acute Market Conference, where he was joined by speakers from ProMedica and Adventist Health System to outline what providers want from their healthcare distribution partnerships. For a full recap of the event, visit www.HIDA.org/IDNSummary.

HIDA Launches New AMS Website, Curriculum FormatHIDA has just launched its brand new Accredited in Medical Sales (AMS) website, offering a complete online training library designed to help healthcare distributor and manufacturer sales reps become more knowledgeable and successful. “The most important new feature is the customizable AMS curriculum,” said HIDA Senior Vice President Elizabeth Hilla. “Participants will be able to pick the courses that relate to their market segment and sales challenges.” To find out how you can offer AMS resources to your sales team, contact Hilla at 703-838-6130 or visit www.HIDA.org/AMS today.

Performance Increasingly Driving Medicare ReimbursementsThe Centers for Medicare and Medicaid Services requires nursing homes to report on 34 quality measures. Beginning FY 2017, failure to report this information will result in a 2% reduction to the SNF annual payment update effective October 1, 2016. Additional Medicare payment details for the physician and hospital markets, as well as others, were recently outlined in HIDA’s Medicare 360: 2016 Medicare Reimbursement Analysis and Outlook. The report, mailed to members along with HIDA’s Medicaid 360: 2016 State Medicaid Report, presents a mixed regulatory and reimbursement bag for healthcare providers’ long-term payment futures. Visit www.HIDA.org/Reimbursement to download the reports today.

Ion Skillrud Deloitte Consulting

2016 Medicare Reimbursement Analysis and Outlook

2016

U.S. Consumers Expected To Increase Spending In 2016 Despite a bumpy stock market start, this year shows positive signs of domestic economic growth well into 2017, according to economist Brian Beaulieu. Beaulieu recently cited more robust consumer spending in 2016 as one of several factors that should contribute to future U.S. distribution and supply chain growth. The business economist will be featured at HIDA’s 2016 Executive Conference (March 1-4, Tampa, FL), where he will forecast short- and long-term economic trends affecting key business decisions. Space is limited; contact Ian Fardy (Fardy@hida.org) or visit www.HIDA.org/ExecutiveConference for additional information.

Brian Beaulieu Business Economist

310 Montgomery Street • Alexandria, VA 22314-1516

MARK YOUR CALENDAR FOR OUR UPCOMING EVENTS

March 1-4, 2016Saddlebrook ResortTampa, FL

May 3-4, 2016Millennium Knickerbocker Hotel Chicago, IL

June 29-30, 2016Hyatt Regency Washington, D.C.

Acute Care Market Survey: Insights On Providers’ Plans For 2016

HIDA Presenter: Gina Smith Director of Business Development

2016 Reimbursement Outlook: Physician Market

HIDA Presenter: Josh Babb Director, Policy and Research Visit the www.HIDA.org ‘Webinars’ page for additional webinar updates and access to past recordings.

Feb 18 2016

Utilization UpdateReleased January 2016

Research & Analytics report of seasonal flu trends, extended care occupancy rates, reference lab testing volumes, and more.

2016 Advocacy Report Coming February 2016

An annual highlight of HIDA’s key government affairs and industry victories to help protect, advance, and promote the interests of medical products distributors.

STREAMLINING HEALTHCARE SM

DISTRIBUTIONDownload the Q1 2016 Report at www.HIDA.org

Utilization Update Q1 2016 & ANALYTICS

0

20

40

60

80

100

120

140

160

7/10 8/29 10/18 12/7 1/26 3/17

2015-2016

2014-2015

2013-2014

2012-2013

Vaccines Distributed During Flu Season (in millions) (Centers for Disease Control and Prevention)

NEWS CLIPSUMMARY

1. REFERENCE LAB

2. FLU VACCINE DISTRIBUTION 3. EXTENDED CARE OCCUPANCY

1. Reference Lab: Labcorp increases continue while Quest Diagnostics sees 0.2% decline

2. Flu Vaccine Distribution: DOWN approx. 2.1M from December 2014

3. Extended Care Occupancy: Average Occupancy UP 0.6% to 89.9% in Q3 2015 from Q3 2014

4. Healthcare Employment: Total Healthcare UP 2.9% from November 2014 Total U.S. Employment UP 2.0% from November 2014.

5. Unemployment Rate: Has dropped to 5.0%

6. Patients Don’t Discuss Costs: More than 50% of patients never discuss the cost of visits, prescriptions, or procedures

7. Home Health Tech on the Rise: Revenues for home health tech use in North America are expected to be 3-times current levels by 2020

10 Health Care Trends to Know for 2016 (The Fiscal Times, Jan 2016)

4.0%

2.6%

5.3%

6.9%

5.3%

6.2%

5.1%

2.2%

0.2% 0.7%

7.7% 7.8%

6.3%

5.6%

-0.40% -0.20% -1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Testing volumes (measured by requisitions): Change over same quarter previous year

Source: Quest & LabCorp Quarterly Financial Statements

Reference Lab Testing Volume (2013-2015: Q/Q)

LabCorp Quest Diagnostics

89.3%

89.9% 89.4%

91.1%

89.1%

88.3%

87.6% 87.6%

85.0%

86.0%

87.0%

88.0%

89.0%

90.0%

91.0%

92.0%

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Extended Care Occupancy Rates (Nat'l Investment Center for Seniors Housing)

Average Occupancy Rate Independent Living Assisted Living Nursing Care

WEBINARS

May 10-11, 2016Loews Royal Pacific Resort Orlando, FL

In This Issue

HIDA Launches New AMS Website, Curriculum Format

Acute Med-Surg Supply Budgets Projected To Rise

Feb 24 2016