In a recent Forbes article, David Whelan reported, “Hospitals are still the heart of the healthcare industry, consuming a third of the $2 trillion US healthcare bill.” Fitch Ratings stresses that hospitals will face “increasing operating expenses, particularly bad debt and labor-related expense” and that “pricing will remain a key driver of revenue.” Hospitals are in trouble. They are looking for solid business solutions that can improve patient care and reduce operating expenses.
The major business challenges being faced by hospitals today are:
- Profitability
- Slim Margins
- Premium increases
- Service Growth & Capital Planning
- Staffing Pressures
- Talent Management
- Consolidation and M & A Integration issues
- Patient safety
- Documentation Management
- General administration efficiency
- IT infrastructure & Technology capabilities
- Supplier relationships
- Regulatory compliance & issues
Hoover’s reports “the profitability” of individual hospitals “depends on efficient operations, since many hospitals offer similar services…Hospital operations revolve around routine patient care such as feeding and hygiene; treatment procedures (including medications); recordkeeping personnel management; purchasing; and billing.” Hospital care relies heavily on putting efficient and effective processes in place. In manufacturing, an inefficient or ineffective process might result in greater material costs. In a hospital, an inefficient or ineffective process might result in patient injury, illness or loss of life.
