Three Ways to Thrive Under a Leaner Reimbursement Environment
"We know two things. We'll have higher transparency and lower reimbursement," he says. To work diligently on cutting costs, he incentivizes his managers with an internal pay-for-performance model based on keeping Kettering's costs at or below Medicare payments, "because one day, that may be all there is."
"When we put that in six years ago, I had some unhappy executives," he says. "They thought it was draconian, that I was mean and didn't like them, but the fact is that it also applies to me, so they can't say I was doing unto others what was not done to me. Now they are thankful they have been on this journey for over five years now. We can't cost shift like we used to."
These strategies are not cure-alls. But following these examples can help ensure your hospital isn't the one that ignores the "wolf" cry when it's finally the real thing.
Note: You can sign up to receive HealthLeaders Media Corner Office, a free weekly e-newsletter that reports on key management trends and strategies that affect healthcare CEOs and senior leaders.
Philip Betbeze is senior leadership editor with HealthLeaders Media.
- Hospital Groups Strike Back at Hospital Rating Systems
- AHIP: Enormity of HIX Challenges Sinks In
- The Secret to Physician Engagement? It's Not Better Pay
- 5 Hot Healthcare Ideas from SXSW
- Another SGR Patch Likely, Lawmaker Says
- How Succession Planning Boosts Employee Retention Rates
- 4 Reasons PCMH Principles Aren't Going Away
- Two-Midnight Rule Must be Fixed or Replaced, Say Providers
- Don't Underestimate Emotional Intelligence
- Evidence-Based Practice and Nursing Research: Avoiding Confusion