Experts Predict Perfect Storm in Long-Term Care Industry at Inaugural Marcum Long-Term Care Symposium
New York City, NY – The long-term care industry will be challenged by exploding demand for care by a rapidly aging population, just as a massive shift from private to public insurance is driving down reimbursement rates to providers and facilities and the ranks of the uninsured continue to swell. Presenters at the First Annual Marcum Long-Term Care Symposium yesterday predicted a perfect economic storm that will pressure the industry to change the way it delivers care and will force greater collaboration among different segments of the healthcare continuum. The symposium was presented by the National Healthcare Practice group of Marcum LLP, a top national accounting and advisory services firm, at the Mohegan Sun resort in Uncasville, CT.
“The long-term care industry is changing in order to address reductions in federal and state funding while also responding to the demands of the aging baby boomer population. Providers are faced with having to rethink the way they operate on virtually every level,” said Matthew S. Bavolack, a Principal in Marcum’s New Haven office and leader of the Firm’s National Healthcare Practice.
“More less is coming,” predicted Anirban Basu, Marcum’s Chief Economist and CEO of Sage Policy Group. “There will be a limit to the quality of care that can be provided as reimbursement rates continue to plummet. The trend towards outpatient care will continue to limit access to hospital care for the publicly insured and uninsured. Market segmentation among skilled nursing, homecare, acute care and other alternatives will mean greater specialization and more strategic growth among providers and facilities, which will drive costs up further.
“Despite the general growth in population, 14.2 million individuals left employment-based coverage in the 2000-2011 period. At the same time, Medicaid enrollment rose by 19.3 million, and the uninsured population rose by 11.7 million,” Mr. Basu said. “Private insurance plans pay hospitals about 30 percent and physicians about 20 percent above Medicare rates. Medicaid payments are also lower than private insurance, and payments by the uninsured are even lower, often $0. In total, about 15 percent of the nonelderly population has moved into insurance arrangements that pay approximately 25 to 40 percent below that of private coverage.”
John E. Poirier, President & CEO of the New Hampshire Health Care Association, called for a more flexible long-term care delivery system. “We need to build more elasticity into the system, which will allow it to expand or contract as needed. Providers, insurers and regulators need to all have a place at the table to help steward the industry towards a continuum of patient-centered care that is accessible, affordable and responsive.”
Symposium sponsors included Healthcare Management Solutions, Inc.; IGX Global Juniper Networks; M&T Bank; Continuum Rehabilitation LLC; First Niagara; KBE Building Corporation; Murtha Cullina LLP; Mutual of America; Omnicare, Inc.; and M&T Realty Capital Corporation.
Marcum’s National Healthcare Practice group provides a full range of advisory, audit, tax, financial, and strategic planning services to the provider community, including long-term care providers, home health agencies, residential care facilities, physician practices, hospitals, federal qualified healthcare centers, and mobile surgical centers
About Marcum LLP
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as select international locations. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting, and assurance services; advisory, valuation, and litigation support; managed accounting services; and an extensive portfolio of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as nonprofit and social sector entities, high net worth individuals, private equity funds, and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services.