Category Archives: Hospital Financing

Hospitals Launching Private Health Plans Have Concerns: What It Could Mean to Work Comp

My fellow FAU alumna, Maria Todd, wrote a very good article about what’s at stake for hospitals considering launching private health plans.

While Maria’s article focuses on hospitals and general health care, it would be prudent for the workers’ comp industry to pay attention to what she has to say, as her expertise in the areas of health care, hospital development, healthcare marketing and branding, concierge medicine and medical tourism has taken Maria around the world several times (lucky her – “I never get to go anywhere”).

There is one item Maria raises in her article that should be of vital interest to workers’ comp.

According to Maria, the process to launch private health plans is fraught with complexity and extreme financial risk. She goes on to add that it involves, at a minimum, obtaining a state license and meeting (and maintaining) capital reserve requirements adequate to cover IBNR (incurred but not reported) claims lags.

Those of us who have been in the claims arena of work comp know a little something about IBNR claims, and what that can do to both a carrier’s loss picture and an insured’s frequency and severity, which affects their experience mod.

If hospitals do choose to launch such plans, they will move closer to being insurance companies that happen to provide medical care, rather than just providing medical care as a hospital.

Maria’s recommendation is that they sink their money into something better that will float.

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How Medical Tourism Hospitals are Developed

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Today’s second post is courtesy of Maria Todd, CEO of Mercury Healthcare International.

While her article is about hospital development in Africa, specifically the work she is doing in Nigeria, it is instructive on how hospital development in other regions of the world are laying the groundwork for the expansion of medical tourism.

In the article, she explains why Africa is targeted for financing and why now, how to size the facility and the market, what is different about hospital development and inpatient utlization in Africa, where the money comes from, the investment risk and capital funding in Africa, and some of the pitfalls that can happen when a company like hers is called in to help develop a hospital, and there is not much cash to be had, or as she puts it:

Apples and little green monkeys fall from trees – not cash

Being an expert in medical tourism and healthcare, Maria has made a name for herself, which is why she takes on such a daunting challenge as hospital development in Africa. Perhaps one day, Africa will be known as a shining example of medical tourism, and she and her company will have made it possible.