Cutting Costs Doesn’t Guarantee Healthcare’s Financial Success
I received the following from Simione Healthcare Consultants and thought it actually quite provocative so thought I’d share. There are some really great organizational leadership insights here that are worth a look.
In a nutshell, integrated actions must be taken to create an environment where health organizations can achieve positive and sustainable results. Positive changes must be made from the inside out to achieve lasting financial gains without sacrificing quality, access or the level of patient satisfaction.
Take a look at the following. If nothing else, it’s an interesting read:
Congratulations, your business has reduced expenses. It must be a relief to finally be on track. Ron Barrera, director at Simione Healthcare Consultants, responds politely with, “Not so fast.” Given the complexities and requirements residing in all healthcare organizations, Barrera says that financial success today means thinking beyond simply cutting costs.
“Organizations must work intentionally to implement a wide range of integrated actions to thrive and achieve positive, sustainable financial results. When a hospital, home health agency or hospice eliminates or reduces an expense without consideration for the process behind it, the value of services may suffer. Positive changes must be made from the inside out to achieve lasting financial gains without sacrificing quality, access or the level of patient satisfaction,” Barrera explains.
The Atlanta-based Simione finance and operational expert suggests that home care and hospice agencies consider four strategies for operating at peak performance:
- Maximize existing resources
- Simplify processes
- Evaluate clinical service delivery model
- Leverage technology
In maximizing existing resources, Barrera suggests efforts to engage employees at all levels to build enthusiasm and a commitment to improving outcomes. “Any time you spend with your team communicating about the value of their work and discussing ways to improve will help productivity,” he says, “and special attention to your management team will develop more effective leaders to engage the hearts, hands and minds of staff.