Fueling Top-Line Health System Growth

Rene Letourneau, August 5, 2015

Health systems can actually increase revenue in the value-based healthcare environment. Here are four keys: find meaningful ways to increase outpatient market share, strengthen key business lines, improve the organizational ability to take on risk, and bring physicians on board.

This article first appeared in the June 2015 issue of HealthLeaders magazine.

Major cost-containment efforts have been underway at most hospitals and health systems for years as organizations try to stay ahead of revenue pressures being caused by declining utilization rates and tightening reimbursements. But controlling expenses is just part of the equation when it comes to preserving or even growing margins. Revenue growth and sustainable business development strategies also are essential.

"With everything that is taking place through utilization reductions and reimbursement reductions in the inpatient portfolio, those organizations that are absent a growth strategy or some other business direction are going to find themselves in contraction mode," says Robert T. Braithwaite, president and CEO at Newport Beach, California–based Hoag Memorial Hospital Presbyterian, which operates 527 beds and had fiscal year 2014 net patient revenue of $779.6 million at its two hospitals.

Thriving in a value-based healthcare environment where payers increasingly are driving patient volume to low-cost care sites will require senior leaders to find meaningful ways to increase outpatient market share, strengthen key business lines, improve the organizational ability to take on risk, and bring physicians on board.

Rene Letourneau

Rene Letourneau is a contributing writer at HealthLeaders Media.

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