Among the many unexpected effects of COVID-19 is the loss of the “normal” patient population coming through physician offices to address their health concerns and seeking procedures. This lost volume has heightened the urgency to effectively address “leakage.” Research indicates that acquiring a new customer is anywhere from 5 to 25 times more expensive than […]
As hospital revenue shrivels amid the coronavirus pandemic, it’s time for independent hospitals to look in the mirror to determine how they stack up. Conducting a self-assessment isn’t just a useful approach for evaluating your organization’s capacity to survive the financial turmoil wrought by the pandemic. It’s also critical for recognizing what your organization brings […]
The pandemic provided an initial introduction to virtual care for many, and most patients and providers have responded positively, embracing its convenience. Health systems, hospitals, and other providers now need to take the time to develop a business plan that identifies opportunities to optimize virtual care platforms, drive revenue and adapt practices to effectively meet […]
As hospitals and health systems navigate a tumultuous economic environment following the COVID-19 outbreak, the need for standardized, value-based physician compensation plans has intensified. Even before the coronavirus pandemic, the median operating loss per health system-employed physician continues to be staggering. Many factors contribute to financial losses on employed physicians – costs related to physician […]
When it comes to developing a financial recovery plan for COVID-19, independent hospitals face more of an uphill climb than other hospitals. With 40 percent of hospitals reporting their revenue had been cut in half during the first month of the COVID-19 pandemic alone—and 55 percent reporting they had less than six months of days […]
COVID-19 has shocked the U.S healthcare system – forcing physician and administrative leaders to think critically about how their current service line models can be improved to better serve and treat their patient populations. Many service lines were designed to maximize patient throughput by offering multiple access points without much consideration for efficiency. As a […]
Prior to the pandemic, we learned something quite surprising. In a Veralon survey, only 42% of respondents viewed the financial losses on employed physician enterprises as “unacceptable” or a “major priority.” Perhaps “surprising” is too tame a description. We were “shocked.” At the time of our survey, the level of losses typically varied between $150,000-$200,000 […]
COVID-19 delivered a gut punch to the outlook for not-for-profit hospitals in 2020, moving from a “stable but delicately balanced” outlook this past January to a negative outlook in late March due to the rapidly evolving pandemic. While independent hospital leaders have always needed to keep a careful eye on their organization’s ability to remain […]
Intro to M&A Blog Series: As healthcare organizations brace for financial losses stemming from the coronavirus pandemic, some will have a harder time weathering the storm than others. It’s a predicament that could propel some not-for-profit hospitals and health systems into partnerships in 2020 and beyond. Just months ago, experts thought hospital and health system […]
The pandemic has led healthcare leaders to ask, “Should we just throw out our strategic plan?” Though much has changed, the quickest and most effective way to lead and make good decisions – and to reassure boards and other stakeholders – is to revise and build on your existing strategic plan[1]. It will help set […]