Benchmarking

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Each hospital is unique yet every hospital needs a set of basic benchmarks so that management and the Governing Board can stay abreast of operations and make timely adjustments. Initially, set benchmarks that encompass high cost or loss areas, such as, Revenue Cycle, Staffing, and Case Mix. Once you are comfortable with these, move on to other areas of concern.

Health & Medicine

Although it was considered so terrible it was never going to happen, Sequestration is here. Hospitals are faced with absorbing a 2% reduction in Medicare reimbursement. For some hospitals this can amount to hundreds of thousands of dollars per year. Add to this change Value-based Purchasing, Readmission Penalties, reductions in DSH and UPL payments, increased RAC Reviews and hospitals across the country are facing an uphill climb. This puts a tremendous strain on all hospitals, even those with tax support.

Staying even in the coming years

BobCharron

CEOs continue to express concerns about how they can maintain financial performance in the current economic climate. Nationally, hospital census numbers have declined. Medicare has implemented a 2% reduction in payments and many state Medicaid plans have reduced reimbursement rates. Lower volumes and decreased reimbursements have hit the hospital industry hard. Proactive C-suite staff members are modeling possible solutions. One common solution is to project increased revenues through new service lines to offset the lower reimbursements. A few have considered cost cutting as the best path for their organization. Both methods can work but some are harder to achieve than others.

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