2002-2003 Annual Report: HFMA brings perspective and clarity to the industry's complex issues for the purpose of preparing our members to succeed. Through our programs, publications and partnerships, we enhance the capabilities that strengthen not only individual careers, but also the organizations from which our members come

Healthcare Financial Management, Oct, 2003

DURING A CHALLENGING ECONOMIC YEAB AMERICA, HFMA remains strong and continues to be an indispensable resource for healthcare finance professionals.

The theme "Create the Future" challenged us to be involved with the issues that affect our future. Given the efforts of HFMA's more than 1,000 volunteers, we helped our members and the profession do just that.

The individuals who volunteered this past year made a difference. Through their efforts, the Association's membership grew through strong retention and new membership. At the end of FY03, HFMA had 32,443 members, compared with 31,681 at the end of FY02.

Many successful educational programs were hosted at the chapter, regional, and national levels, and we produced the largest Annual National Institute to date and two new revenue cycle strategies conferences. The volume of participants in HFMA's e-learning program, a partnership with WebInservice, doubled in FY03. HFMA bit its target of developing 1,000 hours of e-learning content.

The Patient Financial Services task force, a group of expert volunteers in revenue cycle management, completed their work, which will set into motion new and enhanced services about this important topic. Soon, HFMA will release a new brochure detailing the innovative products and services we offer to help with revenue cycle management.

One of HFMA's unique characteristics is that it has the credibility and diversity to provide a sale arena to work out industry-wide issues. HFMA is doing this in a variety of ways. For example, in the past year. the Managed Care Forum has worked with the American Association of Health Plans to cosponsor two unique and very successful seminars that brought payers and providers together to improve claims processing. HFMA and AAHP, along with the National Coalition of Specialty Societies, also have established a committee to identify ways health plans and providers can improve efficiency related to eligibility issues and duplicate claims, some of the most common obstacles to efficient claims processing.

Another example of bridge-building is the PATIENT FRIENDLY BILLING[R] project. This initiative entered a new phase with support of major technology firms and volunteers from key provider organizations. This project helps healthcare industry leaders create a friendlier, patient- focused healthcare billing and collection process. HFMA leads the project in partnership with the American Hospital Association, the Medical Group Management Association, healthcare providers, and leading professional service and technology companies. To date, about one thousand hospitals and health systems have signed onto the Patient Friendly Billing philosophy, and more project supporters continually join the effort. In summer 2003. HFMA released a new set of tools and guidelines to make patient bills clear, concise, and correct. Visit the project's website at www.patientfriendlybilling.org for more information and to learn how the project will evolve.

In 2003, HFMA renewed its involvement in the National Uniform Billing Committee (NUBC), a voluntary, multi disciplinary committee that maintains the integrity of the UB-92 data set and develops mutually agreed upon data elements for the claim and claim-related transactions. The NUBC helps to define the data content associated with each of the electronic transactions and code sets mentioned in the HIPAA legislation.

HFMA staff and volunteers continue to provide input to HHS, Congress, and other policy leaders on critical issues that affect the financial viability of healthcare organizations. During the last fiscal year, HFMA signed onto seven coalition letters, which addressed proposed legislation on disproportionate share payments, Medicaid, and SCHIP funding, as well as proposed IRS rules on deferred compensation.

In the past year, well-publicized accounting and reporting failures crept into the healthcare community. Through education and publications. HFMA continues to inform members about how to deal with the implications of these events. In December 2002, HFMA's Principles and Practices (P&P) Board published ah issue analysis. Recognition of Other-Than-Temporary Decline in Investments for Not-for-Profit Organizations, which FASB's Emerging tissue Task Force has cited as a resource for its background work for a statement on the meaning of other-than temporary impairment and its application to certain investments. Through the P&P Board, HFMA also continues to participate with the Municipal Securities Rulemaking Board project to work toward an ideal disclosure system for financial and operating information. Information on HFMA's positions and activities is available at www.hfma.org/resouree/HFMA_positions_activities/index.htm

In addition to the improvements that HFMA continues to make in the healthcare field, the Association is proud of many other accomplishments. Please read on to learn more about these achievements, as well as HFMA's financial results from the 2002-03 year.

We thank our members, volunteers, sponsors, staff, and others for all their hard work and help in making 2002-03 a banner year.