Developing a geriatric business plan for an academic medical center

Leaders of geriatric programs at academic health centers (AHCs) face several challenges in seeking support for clinical program development. These challenges relate to how revenues from Medicare activities flow within AHCs. Typically, clinical departments such as the Department of Medicine see a very small proportion of total AHC Medicare revenue and frequently experience losses on their Medicare activities. In contrast, hospitals in AHCs see the bulk of the revenues and typically experience substantial profits. This article examines this situation in some detail, with specific examples from AHCs with which the author has consulted. The unique effect of Medicare revenue on AHCs requires the geriatric leader to identify who gains and who loses from Medicare activity within his or her AHC and to seek support for geriatric programs based on that analysis.