Prince William Health System is close to securing a partnership with a larger nonprofit healthcare provider, less than a year after Northern Virginia's largest hospital chain abandoned its plans to merge with the Manassas hospital. Inova Health System walked away from the deal in June, citing a legal challenge from the Federal Trade Commission to block the merger. But the need to expand and modernize its facilities still exists, because the hospital has to keep pace with the fast-growing western Prince William County population it serves, Prince William Health System leaders said.
Louisiana law enforcement authorities hope a new, statewide prescription drug monitoring program will curtail the practice of doctor shopping by drug addicts hoping to score narcotics. They also hope to ultimately reduce the number of people who die of accidental prescription drug overdoses. Under the program, prescriptions are entered into a database that can be accessed by prescribers, dispensers and, in some cases, law enforcement agencies.
As the recession deepens, doctors and hospitals are reporting that hard-pressed patients are deferring elective surgery, even as others are speeding up non-urgent procedures out of fear that they may soon lose their jobs and health insurance. Delaying elective procedures can have serious medical consequences, as when a detectable polyp develops into a tumor because a patient skips a colonoscopy. Some hospitals said their emergency rooms were already seeing patients with dire conditions that could have been avoided had they not deferred surgery for economic reasons.
Democrats and Republicans are battling over whether the government should establish a Medicare-style public insurance option for people under 65. Top Republican senators declared in a letter to President Obama that they would oppose any healthcare bill with a public plan because it would force insurers to compete on an "unlevel playing field" with the government, which could theoretically set artificially low prices and subsidize any shortfalls with taxpayers' money. The issue will be among the most difficult Obama will have to address as he seeks a sweeping healthcare overhaul.
Officers from the State Parole Board have given a presentation to a dozen hospitals throughout New Jersey to help them identify the telltale signs of gang membership. Mary Ditri, director of professional practice for the New Jersey Hospital Association, said the association reached out to the parole board after altercations involving gang members were reported in other states.
When it comes to the job market, the healthcare industry is not a bad one to be in. Nonfarm payroll employment declined by 2.6 million jobs in the past four months, according to February 2009 statistics from the U.S. Department of Labor. During that time, healthcare has added a little more than 100,000 jobs. But that doesn't mean that CEOs or any other senior executives should be sitting too comfortably. All one has to do is skim the healthcare headlines from this week to realize that the recession is still taking a toll on hospitals. Here's a sampling:
St. Francis Hospital and Health Centers announced it has postponed further work on a $265 million project at its Indianapolis campus. This announcement comes roughly a month after rival Clarian Health said it would stop work on the $475 million Simon Family Hospital Tower at Riley Hospital for Children.
Charlotte, NC-based Carolinas HealthCare System reported a net loss of more than $551 million for 2008, driven by significant investment losses and higher interest expenses.
Atlanta-based Grady Memorial Hospital has announced 150 job cuts, in response to severe economic pressures and an increase in indigent patients. Among those who left was the head of the hospital's cancer center.
The Mayo Clinic announced that it barely broke even in 2008, as expenses grew by 7.6% and revenue by 4.5%. The income from patient care fell by almost one third during the year.
Mason City, IA-based Mercy Medical Center will eliminate 59 jobs as it restructures its home healthcare service and hospice program. It is also closing a clinic in Rockwell.
Aurora Health Care Inc. has sold four Milwaukee-area medical office buildings to an investors group in an effort to reduce expenses. The buildings are being leased back to Aurora, which operates clinics at those locations.
Eastern Connecticut Health Network has called off its plans to buy Johnson Memorial Hospital in Stafford Springs due to financial reasons. Johnson Memorial has falling patient volume and revenue and greater-than-expected capital costs.
No CEO is safe from being asked to tender his or her resignation in times as tough as these. It doesn't matter if you have been with the organization for 10 years and successfully completed major capital expansion projects or grew services or negotiated partnership deals with physicians. That was then. It's not the same industry today that it was when many of those deals were brokered. Trustees are looking for a leader who can reduce expenses and stop the bleeding right now. More than 50% of hospitals are in the red, according to a report from Thomson Reuters. So what can CEOs do to hang onto their jobs?
Be honest. Now is not the time to sugarcoat problems. Hospital trustees need the cold, hard truth. If they are caught off guard, they may start questioning what else they don't know about.
Establish detailed plans. Every action plan right now should have very specific goals, timelines, projected outcomes, and assignment of responsibility to specific parties. Rather than saying, "The hospital plans to improve days cash on hand," hospital leaders should be telling the board, "We plan to improve days cash on hand by this much, by this date. This person is spearheading the effort and this is what the result will be."
Hold people accountable. Perhaps you have the plan, and the details are there. But the goals just aren't being met. What are you doing about it? It is on the leadership to follow up on a regular basis with staff members and hold the responsible parties accountable.
Establish good relationships with the medical staff. CEOs should be developing as many one-on-one relationships with the medical staff as they can muster. That the CEO has a great working relationship with key physicians can't hurt as trustees evaluate you.
These practices aren't just good business in tough times—these are fundamentals that CEOs should already be doing. The difference today is there is absolutely no cushion for error. Operations need to be as efficient as possible. If, as the CEO, you fail on these elements, you may be the next hospital employee sent packing.
Carrie Vaughan is leadership editor with HealthLeaders magazine. She can be reached at cvaughan@healthleadersmedia.com.
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