Marketing of health care assignment

Cash at 101% of cost, some of these facilities still barely break even. Board members with an understanding of healthcare financial can review key financial indicators on a monthly basis, including days cash on hand, collection rates, and debt service coverage ratios, to assure that the A not-for-profit hospital depends on community trust, and its board members are the public face of the organization. Because the hospital is such an integral part of the community, the local media will focus on your hospital during troubled times. It is a huge mistake to pretend that there’s no problem or to hide from the media.

Communication and transparency with the community and media are essential – especially during financial downturns. The board’s first communication should be internal, making sure all employees and medical staff members understand the hospital’s situation and the role they need to play in a turnaround. The external message to the community should be consistent – Don’t paint a grim picture on Monday and a rosy one on Friday. This is not the time for “ spin. ” Most troubled Cash are not following an actionable, measurable strategic plan.

The number of Fuchs in the United States – and the comprehensiveness of services hey provide – are on the rise and should skyrocket in the next five years as $1 1 billion in new federal funding is included in the health reform package. The FCC care healthcare, while reducing patient loads on hospital emergency rooms. While new and improved Fuchs will help provide access and services to millions of citizens in our nation’s undeserved areas, they are likely to challenge the role and services of rural and critical access hospitals. Cash will be forced to compete in small markets where many have traditionally been sole providers.

Cash will have the ongoing accessibility for inpatient and emergency services, but potentially lose other revenue producing services, such as outpatient diagnostics. Some CASH services may be nearly identical to those provided by Fuchs, but without the grant support, medical liability coverage and recruiting leverage that comes with the FCC designation. Declining Inpatient/Outpatient Volume This should be a “ Code Red” for any board. Like retail chains that analyze “ same store” data, the hospital board should compare volumes in the current quarter with those from the same quarter a year ago.

Many Cash are waiting to see whether health reform will provide financial relief. But experts stress that those infinite may be two years away – valuable time that shouldn’t be squandered. Reduce Costs Turnaround specialists have helped pull many small hospitals back from the brink of bankruptcy or closure by quickly and astutely cutting their costs. They view all costs as controllable and every cost is evaluated. For example, turnaround experts often analyze physician contracts.

In addition, hospitals can dramatically lower supply chain costs by closely examining and enforcing existing purchasing contacts. Cash can also enjoy savings by closely examining other existing vendor contracts. In one case, a Critical Access Hospital saved nearly $500, 000 in GPO savings in one year from a recent review of contracts. 3 Find Dynamic Leadership A turnaround begins with energetic leadership, decisive action, and a team effort to rally community support. Develop Revenue Opportunities In most cases, a hospital can’t simply cut its way to a sustainable turnaround.

The result can be a dramatic drop in accounts receivable days and improved cash flow. Improve Quality and Customer Satisfaction Once the CASH is financially stabilized, it’s time to grow the organization and push toward excellence. A uncontrolled Southeastern CASH completed its turnaround by obtaining funding for two sleep study suites, an expanded DEED, and a neurologist’s center. 4 Reduce Staff Turnover No turnaround can be deemed a complete success if employee turnover is high and a high cost: lost revenue, recruitment expenses, new hire training, etc.

It’s possible to implement innovative programs that can reduce a runaway turnover rate (20% or higher) to 4% or lower – and lower your costs. 5 Promote Physician/Hospital Alignment CASH board members should never underestimate the long-term strategic importance of physician/hospital alignment and Joint ventures. It’s prudent for the board to seek outside expertise on how to cultivate relationships with area physicians. When one CASH and surgery group Jointly financed an ambulatory surgery center instead of competing, both surgical volumes and hospital market share increased. CONCLUSION Because of the ongoing impact of the 2008 financial crisis, many Critical Access Hospitals are still in danger of slipping into financial insolvency. It’s imperative for page 5 board members to recognize the early stages of hospital distress so solutions can be found as soon as possible. The longer a board waits, the worse the damage is to the lance sheet – and the longer and more difficult the Journey to turnaround the organization becomes. With swift intervention, the hospital can continue to serve the community – and potentially reduce risk for financial stakeholders.