Combating Health Care Fraud, Abuse and Waste

Our health-care system is broken in many ways and legislation is not likely to solve the problems. In 2009 we each spent about $8,000 on health care. That totaled $2.5 trillion or almost 18 percent of the nations gross domestic product. Unfortunately about one quarter of that was budgeted not for health care, but for fraud! Here are some recent fraud statistics.• Medicare and Medicaid billing errors resulted in improper payments of $108 billion.
• Fraudulent claims for Medicare accounted for $33 billion in losses.
• Improper private-pay payments cost about $100 billion.
• Health insurance fraud costs us about $68 billion.
• Fraudulent insurance payments cost us $50 billion.
• Payments for medical errors run about $38 billion.
• About 10 percent of prescription drugs are counterfeit, costing about $12 billion a year.All of this means that we are wasting about $25 million per hour on medical fraud, waste and abuse. That’s way too much and it is something that all of us should be concerned about because, one way or another, we all pay for it. We pay for it in higher taxes, higher medical costs, and higher medical insurance premiums. The government doesn’t “eat” the cost of medical fraud, waste and abuse. Neither to insurance companies or doctors. The costs, as with all frauds, are just passed on to the consumers. You and me. We pay for the frauds.Medical fraud is committed everywhere, by just about everyone. Here is a short list of groups that commit health-care fraud. Recognize any?Who Commits Medical Fraud• Criminal groups
• Employees who approve claims for themselves or friends
• Providers
• Vendors and suppliers
• Insured patients
• Uninsured patientsOne of the attributes of the this system that makes it so susceptible to fraud is that so many players are involved in providing services to a patient and then paying for that service. The initial players in the system are the patient and the care provider. However, it doesn’t stop there. Once the patient has seen the provider the payer (patient, insurance company, government) step into the process. They are followed by the employer how may pay all or part of the patient’s insurance premiums and/or pretax medical savings accounts, and vendors (for examples, drug stores, pharmaceutical companies, medical equipment vendors and manufactures). Medical frauds are complex and often include at least three of these players.Fighting Fraud, Waste and AbuseSo what can be done? We don’t need another study conducted by a government panel. We do need action. The place to start is with consumers and citizens. A comprehensive fraud prevention program to combat fraud starts with anti-fraud education for consumers and citizens. Everyone needs to know how pervasive is medical fraud and what it cost each one of us. An effective anti-fraud program begins as the grass-roots level with consistent and comprehensive attention. One story in the main-stream media every six months will never be enough. Only when citizens know what the problem is and what it costs will they being fight against the status quo.The more technical elements of an anti-fraud program to combat health-care fraud, waste and abuse include:• Fraud prevention programs – internal control systems within all health-care organizations to make it harder for individuals to commit fraud. Adequate review and approval processes coupled with good supervision are the keystones of an internal control system.• Fraud deterrence programs – activities that increase the probability that fraud will be detected if it exists. The most common example of a fraud deterrence program is the conduct of frequent pro-active fraud audits. These are audits that are conducted to uncover fraud when there is not indication that fraud exists.• Fraud detection programs – data mapping, mining and analysis process to detect fraud when it exists.• Fraud investigation programs – reactive auditors and investigations conducted when there are indications that health-care fraud has been committed.• Fraud loss recovery programs – the payer, either an insurance company or the government, must recover funds lost through medical fraud and abuse. The U.S. Code 18 U.S.C. Sec 983(c)(3) claims to right to force property forfeiture if the Government is able to establish that property was used, facilitated or was involved in the commission of a criminal offense, and that there was a substantial connection between the property and the offense.• Fraud perpetrator punishment – individuals who commit fraud perform a cost-benefit analysis and usually determining, at least subjectively, that the cost of fraudulent activities (the risk of detection, prosecution and punishment and the cost of the penalty imposed if punished) are less than the assets (money) gained through the fraudulent activity. When perceived benefits greatly out weigh perceived costs fraud becomes a rational economic decision. Only by increasing the probabilities of detection, prosecution and punishment, and the severity of punishment can the cost-benefit analysis be skewed so that costs are greater than benefits.ConclusionThe battle against medical fraud, waste and abuse starts with you. Become an informed consumer. Let your representatives and senators know that you are tired of paying for medical fraud. After all, the money that the government spends is your money. Ask your doctor and other health-care providers what they are doing in their offices to reduce the risk of fraud. Send a note to your insurance company and ask what they are doing. You might provide them some suggestions from the list above. Become a grassroots activist in the fight against fraud and abuse. You can help reduce medical care costs.

Posted in health care | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off

A Commercial Mortgage – Start Your Own Business Right Away Without Any Hassles!

Many of us do not know what a commercial mortgage exactly means. A mortgage is a loan acquired through the real estate which ensures specific payment. Mortgage actually is a conditional impartation of a property which remains as a security for the further repayment of the amount of loan. Commercial and residential mortgage is quite similar to each other. It is a type of loan written for business purposes with any property or building which may be used as collateral.Commercial loans can be a starting point for your business and the developing of it. This type of loan is basically used for business set-ups rather than for personal investments. The borrower of a loan can be anyone like a partnership, a corporate establishment, or a limited company. In some mortgages where there is a nonpayment of loan the creditor can catch hold of the collateral but thereafter has no claim over and against the borrower for any kind of insufficiency.Mortgages are basically agreements which give higher priority to receive income along with a clause which allows the lender to take back the property if the borrower fails to pay the amount. Commercial property mortgage loan is a responsibility provided to the borrower with a personal assurance from the owner. The debt has to be cleared as it is a compulsion even though he fails to fulfill the outstanding balance.Today the commercial sectors have risen enormously due to the high growth ratio of the manufacturing industries worldwide, thereby leading towards growth in international business infrastructure. Overall, the global industrial sector was benefited with the commercial property sector. This type of mortgage loan is basically preferred by people who believe in expansion and development of their premises. Most of the businessmen prefer to go in with the commercial size mortgage loan.From the year two thousand, the growth rate of the mortgage loan increased sustainably. It created a positive impact on the international industrial sector. The growing industries and expansion of business further gave rise to the requirement of real estates, larger premises and huge spaces for commercial set-ups. This knocked the doors of the commercial property mortgage loans. The recent mortgage plans vary from residential properties to immovable properties and business funding.Casinos, franchisee, restaurants, medical shops, truck and bus terminals, malls, education and training centers, child care centers, treatment centers, hospitals, etc are all different types of commercial properties accepted as collateral security for acquiring mortgage loans. These are basically for carrying businesses and expanding them further.If you feel the need to apply for the commercial size mortgage loan, you need to have your property; land or premises and you need to know that the commercial loan requires in the way of refinancing the existing debt.Common commercial properties are zoned for offices and industrial set-ups. Commercial mortgage loans can be taken for expanding your premises, buying commercial property or land for setting up a business, as a commercial investment or for the purpose of development of property.

Posted in Finance | Tagged , , , , , , , , , | Comments Off

Small Business Should Invest in Big Data and Analytics

Big data refers to huge volumes of structured and unstructured data; however, processing such massive volumes of data via traditional data management tools is inefficient and impossible. To understand big data you have to realize the devices that are collecting it today e.g. bar code scanners, mobile cameras, CCTV cameras, motion sensors, smoke alarms, web analytical tools, CRMs, etc. From the examples, you can see that these devices collect a vast array of data types hence the structured and unstructured part in the definition. The sheer velocity at which the data is being produced cannot be controlled and processed using traditional methods and tools.However, the use of big data and incorporation of big data analytical technology gives businesses the competitive edge over their competitors.Big Data and Small BusinessesIt is only a thing of the past when terms like big data and business intelligence were associated with large enterprises only. Today, small businesses have to leverage the data they are collecting in order to remain a part of the competition. For years, cost has remained the main reason why small businesses did not adopt big data analytical technologies, but this has changed now. There are budget-friendly tools available for small businesses to take advantage of the data they are collecting today. According to some experts, small businesses can take better advantage of big data since they are able to make the necessary changes far more quickly than large enterprises i.e. real-time response to insights from available data.According to an IDG study in 2016, 78% of the large enterprises agree that big data strategy has the power to change how businesses have always operated. This shows the acceptance of big data technology and strategies for large enterprises and strengthens the fact that small businesses could become irrelevant if they did not adopt the same strategies.Benefits of Large Data AnalyticsLarge Data and Big Companies, a report by IIA Director of Research, Tom Davenport, reveals that businesses are benefitting greatly from big data analytics especially in improving their products, making business decisions faster and reducing costs. Here are some ways small businesses can benefit from big data.• Cost SavingsThe upfront cost of implementing large data tools and strategies is high undoubtedly, but the long term benefits of doing so are matchless. The healthcare industry is a great example of how the use of large data can help businesses reduce their costs regardless of their size. Using predictive analytics, Medicare and Medicaid Services forestalled more than $210 million fraud in healthcare with just 2 years of utilizing the aforementioned technology.In addition to preventing frauds, small businesses can also reduce their costs by steering clear of creating more inventory than needed, including better partners in the supply chain, etc.• Improved Decision MakingThis is the biggest benefit of large data. It allows businesses to expedite decision making by processing the data fast and giving insights in timely manner. In the past, business decisions were reserved for future strategies in the light of available data and the trends that were observed in it. The amount of data that businesses are sitting on today is huge and thus more powerful insights are to be gained from it.This vast amount of data requires the use of modern big data hardware technologies. Once both the things are in place for a business, they can understand customers better, create products that are a closer reflection of what customers want and develop a brand based on most reverenced values.• Impenetrable SecurityBusinesses are more focused today on using large data to improve their core capabilities, but less attended to a more serious concerns i.e. cyber threats and security breaches. Almost every small, medium and large business is connected to the internet today. Moreover, the Internet of Things has broadened the attackable security surface for businesses making it easier for cyber criminals to attack networks and penetrate company databases.The biggest concern for modern businesses is that they have to “respond” to cyber attacks that have already occurred rather than being able to prevent them from occurring. The use of big data and big data analytical tools can be a game changer in this area allowing businesses to prevent any security attacks way before they are executed.Key Technologies Helping Businesses Make the Best of Big DataAs a small business, you will have to familiarize with various technologies that help you store, analyze and take action on big data. Here are some important ones:• HadoopIt’s a framework supporting the storing of large amounts of data using an open-source approach. Once data is stored, Hadoop enables the use of a variety of applications using “clustered hardware” at its base. Due to the cluster of commodity hardware, it becomes possible and easy for businesses to process big data despite its increasing volume.• Data MiningThis is the technology that enables business owners to capture insights, patterns and trends from big data that otherwise cannot be obtained with a traditional approach. Data mining is what allows you to jump in a large sea of structured and unstructured data, make sense of it all and produce analytical insights that help businesses with real-time and future decisions.• Predictive AnalyticsPredictive analytics walk side by side with data mining. Artificial is at the heart of predictive analytics, enabling business owners to adjust their present strategies by giving predictions about what will transpire for the business based on existing data.• Text Analysis and MiningOne huge concern for modern business is to analyze the noise on various web platforms such as forums, blogs, social networks, etc. to understand what customers expect from a particular brand. Finding out about brand mentions and understanding customer’s impression of your brand can help you readjust your marketing approach to gain customer loyalty. Text mining helps small to large sized businesses go through text data from emails, blog posts, social networks, etc. and hear customers “voice”.With the rise of smartphones, artificial intelligence and IoT (internet of things) it has become clearly visible that businesses will now have to handle mountains and mountains of data, and make use of big data analytical and processing technologies to have the competitive edge.

Posted in Uncategorized | Tagged , , , , , , , , , | Comments Off