Hospital Leaders — Cut Waste Out Before Regulatory Reform Hurts
“Waste Not, Want Not.” This good advice from our grandmothers is now an imperative direction for hospital leaders.
Too many are standing around trying to figure out how reform will impact hospitals. Those standing still will find proactive leaders passing them by.
The smart leaders understand that regardless of how healthcare reform looks when it becomes law, the real truth is that we’ll all be getting less. Knowing this is the end-point gives us all the freedom to take action now.
Proactive hospital leaders are already assuming the conclusion and are getting to the task of cost reduction and quality enhancement in preparation for whatever change comes our way.
The strategy to thrive (who just wants to survive?) is critical, stem to stern evaluation of all processes within the hospital from operations through administration, from staffing through organizational structure.
This need not be arduous, laborious or time consuming but it must be critical, objective and structured. In fact there is much merit in a blitz approach to assessment yielding fast, reliable opportunities that can be prioritized and addressed with alacrity.
Such a rapid approach is less disruptive, more culturally respectful and garners fewer opponents capable of hijacking the process. Analysis-paralysis is prevented. In the end, nothing yells success like results that translate to the bottom line and the ability to invest in mission critical activities.
A relatively small hospital recently took action to reduce labor cost and put an extra $8 million on their bottom line without layoffs or departmental closings – a savings that will repeat year after year. Consider then, the even greater potential for cost reduction at larger hospitals. The places to look for productivity gains with dramatic results lie in improving labor productivity, increasing patient throughput, eliminating the need for facilities expansion with more efficient processes and LOS reduction.
“Waste Not, Want Not.” Or as Ben Franklin once said: “A penny saved is a penny earned. “ Never have pennies been as important as when you are fighting a recession, healthcare reform and more aggressive regulatory compliance – all at the same time.
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- Hospitals Facing Three Changes from Healthcare Reform It’s difficult to predict the specifics of what health care...
- Two Trillion Dollars in Healthcare Reform is a Game Changer for Hospitals By Kate Fenner, CEO, Compass Clinical Consulting: Taking $2 Trillion...
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