What's on hospital executives' 'do-not-forget' list

by Kevin L. Shrake There are 100 top initiatives that any healthcare executive can focus on today and 99 of them don't count. The one top priority is securing the financial viability of our organizations. Two-thirds of hospitals do not make money on operations. They depend on investment income, spending reserves or corporate subsidy to survive. So how can we focus solely on financial issues when other areas such as safety, quality and patient satisfaction are so important? The answer is actually simple. Organizations that have set high safety and quality standards and have developed a culture that enhances physician, staff and patient satisfaction have lower costs. You can take this concept further in regards to healthcare organizations that are proactive in meeting community need and involving key stakeholders in strategic planning, as well as the development of new strategies such as accountable care organizations (ACOs). This also leads to margin improvement that creates financial stability. The old adage of "all roads lead to Rome" applies to the importance of how all of our key initiatives affect finances. Executive Amnesia One of the biggest obstacles to improving the financial stability of healthcare organizations is a phenomenon that could be termed "executive amnesia." We simply forget basic principles that should guide us in this unpredictable era of healthcare reform. Here are some of the common areas that should be on every executive's "do-not-fo...
Source: hospital impact - Category: Health Managers Authors: Source Type: blogs