Rolling into the Summer Planning Period – 5 Neccessary Questions for 2010.
July 6, 2009
Summer in healthcare is a time to prepare for a specific onset of acute problems, including asthma, heatstroke, cardiac arrest and other related illnesses. However, it is also a critical planning period for hospitals as they approach the upcoming fiscal year. Many hospitals utilize the summer/early fall as a time period to track previous year’s numbers, initiatives, fund-raising, capital expenditures, profitability and growth. Summer is “Planning Season.”
Obviously, we are in a time where “planning” is not the same process as it once was. We have passed the time of “it feels right, or other lagging indicators of growth, need or change. Furthermore, as indicated, many planning directors, and strategy directors are being let go (see this link) for fiscal reasons, or cost cutting.
So, with further pressure being placed on the healthcare industry, this seems extremely crucial to get the facts straight. I have prepared a few questions that one should ask internally in order to make maximum impact in 2010:
(1) How does the current economic trend affect my hospital’s payor mix, fiscal situation and current initiatives? Are there any ongoing projects that may need scope changes as a result? Do we need to make adjustments in these initiatives to compensate for lack of, or over spending? Question 1 revolves around success of past initiatives, and ongoing projects.
(2) In what areas can we maximize efficiencies to ensure financial conservatism and growth in 2010? Are we sure that our data is correct? Do we need to enact policies to motivate further efficiency? Question 2 revolves around performance. Anything and everything that can be done to see more patients and improve quality of care is paramount. Process Improvement.
(3) Will the government be successful in passing Healthcare Reform? If so, how does this affect my revenue cycle? Payor Mix? Service Lines? Can I be profitable in a new system? Question 3 revolves around flexibility to dynamic regulatory change, and making sure that your managed care strategy is aligned with your internal operating processes to maximize return on procedure (ROP).
(4) Cost Cutting, Employee Growth and Efficiency. What is your strategy for maximizing cost? Have you had to lay off employees? Do you need to continue with “de-emphasising” service lines, projects or employees to save costs? Is there anything that can be done to mitigate this issue?
(5) Initiative tracking, Data and Success. Are you utilizing internal or external resources to ensure financial, initiative and clinical success? Do you need consultants to help? Can swapping internal for external resources help you be more efficient? Does your strategy align with your IT systems, analyst point of view and resulting data? How can this be addressed?
If you take the tact that these questions are aimed at providing, your financial feasibility, project effectiveness and initiatives will become and remain effective. As we stated earlier, being as nimble, lean and proactive as possible will help in addressing the coming changes to the system and the market. Address these questions, and you address many of the issues for 2010.
Cheers!
