How this bottom line focus has changed the nature of the U.S. health care system
Growing expenses fueled by workforce challenges combined with supply chain shortages, payment constraints, payor challenges, and inflation are exacerbating the urgency for healthcare organizations to reduce costs and regain their financial foothold. Show
According to a recent American Hospital Association report, 33% of hospitals are operating on negative margins. Longer-term financial pressures, like the rising cost of capital and subsequent COVID-19 surges, will continue to stress health systems for the foreseeable future. How organizations respond now will be instrumental in shaping their financial future. A combination of short- and long-term initiatives will be needed to relieve immediate margin pressure while simultaneously altering cost structures and business models that reposition organizations from incremental optimization gains to longer-term transformation for continued growth and improvement. These five high-impact actions will provide healthcare organizations with the foundation to make significant, sustainable changes to improve their bottom line: 1. Confront Workforce Woes With Investments in Talent and CultureAfter months of relying on agency nurses to fill vacancies, healthcare organizations must begin putting together an exit strategy and focusing on a more sustainable approach to address healthcare’s workforce crisis. With a projected shortage of 15 million healthcare workers by 2030 and employee engagement declining, organizations need a holistic talent strategy anchored by a people-focused culture. While health systems will likely need to leverage agencies in some capacity in the short term to alleviate staff workloads, more strategic levers to attract and retain permanent talent are needed. As talent challenges persist, investing in culture is nonnegotiable.
2. Redesign Clinical Operations to Enable Better, Patient-Centered CareAs organizations seek to provide a more seamless care experience, reduce costs, and generate revenue, forward-thinking leaders are re-imagining clinical operations and strategies to better support consumers’ healthcare needs and provide the most effective care possible. Short TermLong Term
3. Shift the Mindset by Treating the Medical Group as a Growth AssetHealthcare organizations can no longer afford to invest in clinics without a greater return on investment. Relying solely on downstream referrals is not enough. Organizations should be evaluating how to maximize their current assets to ensure every facility is financially stable on its own and has a clear pathway for strategic growth. Short TermLong Term
4. Get Paid for What You DoBuilding financial health through cost containment and revenue improvement is more vital than ever. To reach an ideal state, health systems need to move costs and revenue in balance. Breakthrough improvements in both areas will rely on technology, data, and analytics to drive efficiency and decision making. Short TermLong Term
5. Create a Continuous Improvement EngineTo break the cycle of incremental improvement and reactive measures, organizations need to rethink how they operate. A foundation for continuous improvement is the best defense against the next major disruption. Creating an internal structure that continually incentivizes improvement and drives waste out of the system as the business evolves and new challenges arise will position organizations for long-term success and growth. What are the two major problems facing the health care system of the United States?8 Major Problems With the U.S. Healthcare System. Preventable Medical Errors.. Poor Amenable Mortality Rates.. Lack of Transparency.. Difficulty Finding a Good Doctor.. High Costs of Care.. A Lack of Insurance Coverage.. The Nursing and Physician Shortage.. A different perspective on solving the shortage crisis.. How has the concept of health changed over time?The definition of health changed, related to health promotion and it is seen as including factors of physical, mental, and spiritual wellness. Today, we realize that health, wellness, and prevention of illness go hand and hand.
What are three 3 key issues facing our health care system today?5 Current Issues in Health Care and What Administrators Can Do. The High Cost of Health Care. The problem: Perhaps the most pressing issue in health care currently is the high cost of care. ... . The Concerns of Health Equity. ... . The Promise (and Pitfalls) of Technology. ... . The Move Toward Value-Based Care. ... . The Growing Provider Shortage.. What are the major changes taking place in the healthcare field?Top 10 Emerging Trends in Health Care for 2021: The New Normal. 1 More Strategic and Agile Supply Chains. ... . 2 Coopetition as a Viable Strategy. ... . 3 Patient Consumerization. ... . 4 Personalization of Care. ... . 5 Workforce Diversity and Safety. ... . 6 Virtual Care. ... . 7 Artificial Intelligence and Automation. ... . 8 Revenue Diversification.. |