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Hospitals Find Their Role Diminished



The traditional hospital has become not only a high-cost boogeyman, but also a sign of the limits of a CEO's leadership capabilities. Buttressing a financially vulnerable hospital's business with ancillary services is one way CEOs are being innovative. Now other industry players need to catch up.



3 comments on "Hospitals Find Their Role Diminished"
David Hold (10/23/2013 at 3:07 PM)

I agree that may be a solution another solution is for hospital administrators to learn basic principal of finance and instead of focusing what can I bill for it focus on the bottom line and realize that you just being able to bill for it does not guarantee profitability. Savings and eliminating waste can have the same effect on bottom line
bob sigmond (10/18/2013 at 3:41 PM)

Your "traditional hospital" is almost all gone. Today, hospital income from in-patient care in almost all the hospitals with which I am familiar makes up less than half of the total. The majority comes from ambulatory and related services. Check it out. Also, today, hospitals have the opportunity to entirely eliminate being paid from fees-for-service by contracting out the entire billing and collection function to a Blue Cross Plan or insurer which will agree to pay a single monthly check for all services, based on a collaborative strategic plan and budget. The contract, of course, would provide for monitoring monthly income and expenditures to make necessary immediate adjustments when the budgeted projections of the bottom line turn out to be inadequate. Also, if the bottom line turns out to be positive, funds would be available for capital expenditures. This arrangement enables the hospital to concentrate on improving quality and access, as expenditures decline, with increasing emphasis on population and community care. For the contracting hospital, there is no longer any uncompensated care, and no unpleasant involvement with patients about collections, and no longer any worries about the bottom line. For more information about this approach, call me at 215-561-5730, or e-mail. Right on, Bob
David Hold (10/18/2013 at 2:26 PM)

I can say finally the industry or at least some in the industry are waking up to reality. Over the past few years i have been preaching that the one thing the industry lacks is vision and they should be taking lessons from their banking colleagues who learned over a hundred years ago that if a customer wants to make a dollar deposit will not travel fifty miles to accomplish it however if he needs to borrow a large sum of money he will travel and that is called branching.