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Limitations Of Health Insurance Regulation

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Running head: LIMITATIONS OF HEALTH INSURANCE REGULATION
Limitations of Health Insurance Regulation
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LIMITATIONS OF HEALTH INSURANCE REGULATION 2
Limitations of Health Insurance Regulation
How the implementation of the Patient Protection and Affordable Care Act (PPACA)
might Impact Operations of Healthcare Support Organizations (HSOs)
Core operations in the HSOs involve administrative, financial, and legal activities.
Healthcare professionals in HSOs need to handle the operations to ensure the business is
running. The introduction and implementation of the PPACA is expected to have both direct and
indirect impact on the aforementioned HSOs operations. First, the PPACA is expected to
revolutionize data capture and clinical care management. Electronic health records are required
to enhance clinical communication, whereby patient data and facility can be traced (Rudnicki et
al., 2016). The PPACA necessitates the utilization of reconciled and unified patient and facility
details. The system is designed to reduce readmissions; thus, improving the relationship between
caregivers and patients. Second, the implementation of PPACA will minimize clinical
variability. The PPACA can only achieve its goal if HSOs increase the accuracy of inventory
levels and workflows. Here, the PPACA will make sure that both the medical staff and patients
are impacted positively.
How the PPACA Might Affect Cost Structures and Reimbursement Rates for HSOs
The implementation of PPACA will have a direct effect on the HSOs cost structures.
First, HSOs will be required to conduct a community health needs assessment as provided in
Section 501(r) on the Internal Revenue Code. Failure to meet the requirements results in the
imposition of excise tax. Thus, HSOs are likely to experience increased variable costs as they
partner with public health departments to carry out community assessments. Second, PPACA
implementation will result in an increment in mergers and partnerships, which will increase fixed

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Running head: LIMITATIONS OF HEALTH INSURANCE REGULATION Limitations of Health Insurance Regulation Name Institution Affiliation LIMITATIONS OF HEALTH INSURANCE REGULATION 2 Limitations of Health Insurance Regulation How the implementation of the Patient Protection and Affordable Care Act (PPACA) might Impact Operations of Healthcare Support Organizations (HSOs) Core operations in the HSOs involve administrative, financial, and legal activities. Healthcare professionals in HSOs need to handle the operations to ensure the business is running. The introduction and implementation of the PPACA is expected to have both direct and indirect impact on the aforementioned HSOs operations. First, the PPACA is expected to revolutionize data capture and clinical care management. Electronic health records are required to enhance clinical communication, whereby patient data and facility can be traced (Rudnicki et al., 2016). The PPACA necessitates the utilization of reconciled and unified patient and facility details. The system is designed to reduce readmissions; thus, improving the relationship between caregivers and patients. Second, the implementation of PPACA will minimize clinical variability. The PPACA can only achieve its goal if HSOs increase the accuracy of inventory levels and workflows. Here, the PPACA will make sure that both the medical staff and patients are impacted positively. How the PPACA Might Affect Cost Structures and Reimbursement Rates for HSOs The implementatio ...
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