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Trends and Risks


Managed Care


Health Care Trends and Risks

The health care industry has been through major changes over the last few years. The reduced Medicare and Medicaid reimbursement and have put major challenges on providers.

One of the primary areas affecting the reimbursement for the health care is the lower than normal monies received from the Federal government for the State Medicaid programs. The States are also feeling the crunch since the September 11th event and funds are not readily available or are being cut in that area. Although this depicts a very poor picture for the future of health care, it is the opinion of CopperSands, Inc., that the pendulum will swing. Because of the financial issues, opportunities are available to obtain facilities at a lower cost and take advantage of the lower interest rates in the acquisition of property and development.

It is for these reasons CopperSands, Inc., believes that this is the time to grow in the industry in preparation for the large number of seniors that will be requiring the services of this market within the next 10 years.

Changes in reimbursement are causing hospitals and skilled providers to look at the proposed federal bundling payment system. Consequently, CopperSands is emphasizing relationships with other providers and developing transitional facilities. The objective is to provide short-term rehabilitation that will prevent re-hospitalization which is currently occurring from patients going home too soon with no assistance.

With the staffing shortages, it is apparent that technology must improve in order to provide the special health care needs of our seniors. CopperSands, Inc. is emphasizing their development in these areas and is working towards fully electronic health care records.

The numbers of assisted living communities have greatly increased over the last few years. However, the economic conditions have made this area of development riskier for the next few years. Consequently, in the interim, CopperSands is emphasizing special areas of need such as Alzheimer’s and behavioral. CopperSands believes the need driven services are less likely to be affected by the changing economy or change in health reform.

In addition to specialty areas in assisted living, CopperSands is emphasizing specialty nursing facilities such as transitional rehabilitation, neurological and respiratory services. All of these are need driven and meet the objectives of reduced cost in health care spending.