Mid-Atlantic Health Law TOPICS

1. In May, the Maryland Health Care Commission (HCC) released its 2005-2006 Practitioner Utilization Report that focuses on health care practitioner services received by privately insured, nonelderly Maryland residents in 2006. The report shows an increase in spending on practitioner services from $904 per user in 2005 to $941 in 2006. Per user spending grew about 4% in the Baltimore metro area, 6% in rural parts of the State and 3% in the National Capital Area. In 2006, 43% of users were enrolled in private employer health insurance plans, followed by 34% in public employer plans, 17% in the small business Comprehensive Standard Health Benefit Plan and 6% in individual plans. The users of HMO services and non-HMO services remained stable from 2005 to 2006, with about 60% enrolled in non-HMO services.

2. In July, the Health Services Cost Review Commission (HSCRC) approved the 2008 Financial Condition of Maryland Hospitals Report, the third comprehensive report since 1988. The report assesses the financial condition of the Maryland hospital industry over time using a system of financial indicators and targets. Two new indicators – the EBIDTA Ratio and the Debt Service Coverage Ratio - were added to the current six measurements tools. The new Earnings Before Interest, Depreciation, Taxes and Amortization (EBIDTA) target is 10.75% of net operating revenue. Additionally, staff is to refine the cost per EIPA measurement tool. The HSCRC had previously approved a target cost per EIPA of 3%-6% below the nation. Staff may change the range of 3%-6% to an actual fixed target.