The C-suite of the healthcare industry has grown dramatically over the last several years, and has been spurred by legislation that ties reimbursement rates under Medicare and Medicaid to the use of technology in medicine.
This article by TELG managing principal R. Scott Oswald and TELG principal David L. Scher was published by American Journal of Managed Care on September 7, 2016. The full article is available at American Journal of Managed Care.
Medical Technology Use Spurs New C-Suite Titles, Which Bring Opportunity and Risk
The C-suite of the healthcare industry has grown dramatically over the last several years. With titles like chief innovation officer and chief transformation officer now common, the opportunity for professional growth for doctors, nurses, and other healthcare providers has never been greater. However, most do not realize that these new titles come with additional risk.
The C-suite growth has been spurred largely by the American Recovery and Reinvestment Act of 2009 (ARRA), Pub. L. No. 111-5, which ties reimbursement rates under Medicare and Medicaid to the use of technology in medicine, such as the implementation of electronic medical record (EMR) systems and the “meaningful use” use of electronic health records (EHRs). Under the EHR Incentive Programs, at least 50% of patients must have access to their records online and more than 5% of those patients must actually use the online systems made available by their providers.
Healthcare companies, seeking to maximize their reimbursement, have created an array of positions, such as chief incentive officer, chief transformation officer, chief data analytics officer, and chief experience officer, to help with the implementation of new technologies. These positions directly reflect the requirements that must be met to maximize reimbursement under federal healthcare programs.