Tackling Hospital Leader’s Financial Concerns

Hospital Leadership
Financial challenges clearly rank number one for hospital CEOs. Whether it’s falling reimbursements, quality-related compensation penalties, or escalating operational expenses, these are the things that most concern hospital leadership. Efficient alternatives and solutions are needed.

Ranked nearly twice as high as the next subject, financial challenges are the primary focus of hospital leaders.  As shown on the survey list, healthcare reform implementation; Results of the American College of Healthcare Executives (ACHE) 2013 survey (release dated January 13, 2014).  The survey ranked the 11 topics that are regarded as the top issues in the hospital business.  In fact, financial concerns have persisted as the primary issue for hospital leadership over the past 10 years.

“It is not surprising that financial challenges and health reform implementation are on the minds of hospital CEOs,” says Deborah J. Bowen, FACHE, CAE, president and CEO of ACHE. “In addition, both government mandates and patient safety remain top priorities as CEOs and leadership teams work hard to improve patient care and redesign care delivery as they face a challenging reimbursement climate.”

In the financial challenge portion of the ACHE survey, respondents were asked to rank the following elements relative to the composition of this category. This classification is recorded as follows:

 

Government funding cuts 85%
Medicaid reimbursement (including adequacy and timeliness of payment, etc.) 81%
Medicare reimbursement (including adequacy and timeliness of payment, etc.)  71%
Bad debt 67%
Decreasing inpatient volume 64%
Increasing costs for staff, supplies, etc. 50%
Competition from other providers 40%
Inadequate funding for capital improvements 39%
Revenue cycle management (converting charges to cash) 37%
Other commercial insurance reimbursement 35%
Managed care payments 34%
Emergency department 31%
Other 31%

With the mounting pressures on cost containment, hospital leaders are increasingly turning to industry consultants and companies like Soriant Healthcare, establishing partnerships designed to decrease cost, improve employee engagement and enhance the patient and visitor experience. Soriant Healthcare’s team is composed of former healthcare contract services executives, with a sole focus on the hospital’s support services arena. Soriant offers expertise in delivering operational savings to both contracted and self-operated departments in concert with elevating quality and patient outcomes.

Soriant Healthcare has a reputation in the industry for delivering sustained targeted savings to hundreds of hospitals across the country. Quality outcomes have also been improved, in collaborations with Soriant, by increasing patient satisfaction scores, hospital café revenues, and enhancing internal customer service.

About the Author:

Tom Millar is a seasoned operations leader with expertise in contract management services, profit and loss management, cost reduction initiatives, client retention, and business growth. He possesses a passion for developing and mentoring subordinates, building teams, and working with clients to drive operational savings.

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