Description
At times, staffing reductions cannot be avoided and are vital for the continued well-being of the organization. Systematically review all management and staff positions compared to standard benchmarks and adjust for nuances of the business operations.
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9
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u
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2
12
The news headlines today are ?lled with
stories about struggling hospitals. While there are glimpses of hope in
the ?nancial markets, it is likely that most of 2009 will be characterized
by softer volumes and suppressed revenue streams for hospitals. For a
successful turnaround, consider these strategies:
Down Economy
Turnaround Strategies
Pr act i cal
for Di st ri ct
Hospi t al s i n a
n Invest in physician relations.
Adopt the adage that physician
loyalty must be won daily. Invest
resources in physician liaisons and
referral tracking mechanisms for
independent physicians. Address the
underlying physician concerns about
ine?cient operations, poor access,
service, or quality to keep volume
from going to competitors.
n Examine pricing strategy. In an age
of increased scrutiny on the provision
of charity care and demonstration
of community bene?t, this strategy
should be executed with precision
and delicacy. While raising charges
may not be a viable option for every
hospital, failing hospitals often
charge below market rates and do
not receive what they should from
paying patients.
n Conduct a thorough review of
billing/collections. More than
ever, cash is king! Ensure that the
billing and collections department
has the appropriate leadership,
sta?ng, management reports,
and communication processes/
relationships with operations to
maximize cash collections.
n Assess throughput in revenue
generating areas. Poor operating
performance in these key areas leads
not only to unrealized revenue from
additional cases, but underutilized
expensive resources. Engage
physicians in the improvement
process. Idle time not only results
in physicians losing income, but it
also creates frustration. Serving the
physician customer is extremely
important for both growing and
retaining business in these times.
n Examine the business portfolio.
While there may be a few places
to trim around the edges, most
hospital departments are likely
already operating on a lean budget.
Now is the time to critically examine
the business portfolio. Identify
the services and programs that are
losing money and close or scale back
Keep board
members apprised
of internal and
external trends
on an ongoing
basis so informed
decisions can
be made without
intense public
board education
on each topic.
w
w
w
.
a
c
h
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.
o
r
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13
Down Economy
Turnaround Strategies
By Michael J. Randall, MHA, Manager and
Rebecca B. Bales, MPA, ASA, Senior Vice President
Te Camden Group
marginal programs. Likewise, ensure
that pro?table services have the
appropriate resources to grow.
n Reduce sta?ng appropriately.
At times, sta?ng reductions
cannot be avoided and are vital
for the continued well-being of
the organization. Systematically
review all management and sta?
positions compared to standard
benchmarks and adjust for
nuances of the business operations.
Before implementing any sta?ng
reductions, consider the downstream
implications of potential cuts on
productivity and quality.
n Scrutinize sta?ng e?ectiveness
to volume variations. In a down
economy, responsiveness to even
small declines in volume is essential.
Arm managers with the tools
necessary to monitor performance
and hold leadership accountable
for results. Encourage the use of
part-time and per diem employees
in order to respond to volume
?uctuations.
n Engage and educate the board.
Tis is a special challenge in district
boards because the meetings are
public, and politics are real when
dealing with elected o?cials. Keep
board members apprised of internal
and external trends on an ongoing
basis so informed decisions can
be made without intense public
board education on each topic.
Financial statements and other board
correspondence should adhere to the
intentions of Sarbanes-Oxley so that
communication is transparent and
reports are clear.
For more practical turnaround
strategies, contact Te Camden Group
at 310.320.3990. ?
doc_874824822.pdf
At times, staffing reductions cannot be avoided and are vital for the continued well-being of the organization. Systematically review all management and staff positions compared to standard benchmarks and adjust for nuances of the business operations.
2
0
0
9
I
s
s
u
e
2
12
The news headlines today are ?lled with
stories about struggling hospitals. While there are glimpses of hope in
the ?nancial markets, it is likely that most of 2009 will be characterized
by softer volumes and suppressed revenue streams for hospitals. For a
successful turnaround, consider these strategies:
Down Economy
Turnaround Strategies
Pr act i cal
for Di st ri ct
Hospi t al s i n a
n Invest in physician relations.
Adopt the adage that physician
loyalty must be won daily. Invest
resources in physician liaisons and
referral tracking mechanisms for
independent physicians. Address the
underlying physician concerns about
ine?cient operations, poor access,
service, or quality to keep volume
from going to competitors.
n Examine pricing strategy. In an age
of increased scrutiny on the provision
of charity care and demonstration
of community bene?t, this strategy
should be executed with precision
and delicacy. While raising charges
may not be a viable option for every
hospital, failing hospitals often
charge below market rates and do
not receive what they should from
paying patients.
n Conduct a thorough review of
billing/collections. More than
ever, cash is king! Ensure that the
billing and collections department
has the appropriate leadership,
sta?ng, management reports,
and communication processes/
relationships with operations to
maximize cash collections.
n Assess throughput in revenue
generating areas. Poor operating
performance in these key areas leads
not only to unrealized revenue from
additional cases, but underutilized
expensive resources. Engage
physicians in the improvement
process. Idle time not only results
in physicians losing income, but it
also creates frustration. Serving the
physician customer is extremely
important for both growing and
retaining business in these times.
n Examine the business portfolio.
While there may be a few places
to trim around the edges, most
hospital departments are likely
already operating on a lean budget.
Now is the time to critically examine
the business portfolio. Identify
the services and programs that are
losing money and close or scale back
Keep board
members apprised
of internal and
external trends
on an ongoing
basis so informed
decisions can
be made without
intense public
board education
on each topic.
w
w
w
.
a
c
h
d
.
o
r
g
13
Down Economy
Turnaround Strategies
By Michael J. Randall, MHA, Manager and
Rebecca B. Bales, MPA, ASA, Senior Vice President
Te Camden Group
marginal programs. Likewise, ensure
that pro?table services have the
appropriate resources to grow.
n Reduce sta?ng appropriately.
At times, sta?ng reductions
cannot be avoided and are vital
for the continued well-being of
the organization. Systematically
review all management and sta?
positions compared to standard
benchmarks and adjust for
nuances of the business operations.
Before implementing any sta?ng
reductions, consider the downstream
implications of potential cuts on
productivity and quality.
n Scrutinize sta?ng e?ectiveness
to volume variations. In a down
economy, responsiveness to even
small declines in volume is essential.
Arm managers with the tools
necessary to monitor performance
and hold leadership accountable
for results. Encourage the use of
part-time and per diem employees
in order to respond to volume
?uctuations.
n Engage and educate the board.
Tis is a special challenge in district
boards because the meetings are
public, and politics are real when
dealing with elected o?cials. Keep
board members apprised of internal
and external trends on an ongoing
basis so informed decisions can
be made without intense public
board education on each topic.
Financial statements and other board
correspondence should adhere to the
intentions of Sarbanes-Oxley so that
communication is transparent and
reports are clear.
For more practical turnaround
strategies, contact Te Camden Group
at 310.320.3990. ?
doc_874824822.pdf