Hospitals, Systems and Health Facilities Fighting Back… By Looking Around
As every hospital, system and health facility financial manager knows, experiences and ponders: Most hospitals, systems and health facilities today are suffering from fewer admissions, declining reimbursements and days’ cash on hand. Compounding these disappointing trends is inflationary expense growth, including increased cost of capital and IT. Put this sad syndrome all together, and the result is reduced EBITDA margins.

Simultaneously, every hospital, system and health facility executive and manager is looking for ways to mitigate these negative dynamics.

Some mitigating approaches are “tried and true”. However, very few are actually proven-in-practice, referenced, affordable, truly risk-free, and produce demonstrable and sustained positive outcomes that you can “take to the bank” (…and to your Board!).

One of the most cost-effective, cost-efficient methodologies used to unburden hospitals, systems and health facilities of these negativities is “doing what’s been done”: 

In brief, there are literally 1000s of publically-available solutions and techniques already successfully utilized, adapted and customized by 1000s of the nation’s hospitals, systems and health facilities. Better yet, these solutions are in the public domain, neither patented nor copyrighted, yet accessible to all who care to find and use them. And best of all, they are free and already-successful, where you can select and customize which of these solutions you care to use and bring in-house.

Once examined and selected, these solutions may be further refined and individualized to best fit your current financial needs, operational focus and administrative orientation. Further, no layoffs or new hires are required before, during or after these solutions’ implementation. Additionally, this process reduces variability and waste, while enhancing quality of care and patient satisfaction.

These solutions cover the entire hospital, system and health facility enterprise, i.e., clinical, operational, financial, acute and non-acute—with you in the driver’s seat—addressing those areas that need your most pointed attention.

Some of the many areas for opportunity are:
  • Premium pay
  • Clinical waste
  • Physician integration
  • Blood management
  • Energy costs
  • Employee benefits
  • Liability insurance
  • Cafeteria efficiency
  • Laundry controls
  • Patient satisfaction
  • Length of stay
  • Out-patient growth
  • ED collections
  • Physician preference items
  • GPO effectiveness
  • ….and on and on…

These solutions are not about discounts. Instead, these solutions are about reducing use and converting expenses into revenues, because…...

Given today’s reimbursement mechanisms, e.g., case rates, per diems, shared savings, bundling, ACOs, capitation, etc., there is no (or very little) explicit or direct reimbursement for any specific expense. This means, any time an expense is not made and saved, those savings go right to the bottom line. And by the same token, any time an expense is converted into revenues, these net revenues go to the bottom line.

There is no limit to the desired and necessary areas these solutions cover.

There is no limit to the magnitude of the new savings to be achieved.

There is no limit to the range of added net revenues that can be reaped.

Done professionally, there is no risk and no net cost, only added savings,
new net revenues and enhanced margins.