Hospitals are big businesses in today’s competitive healthcare industry. Improving the financial performance of hospitals is a constant challenge of reviewing key components and analyzing current data with the goal of reducing costs. Revenue can be increased by using competitive techniques and innovative changes to find where cuts can be made as well as setting up checkpoints to prevent overspending. If you are unsure how to get started, healthcare consultants can help identify how to improve hospital financial performance.

What are the Typical Financial Problems of a Hospital?

Designing an overall plan to examine each major process of the hospital to ensure cost-cutting measures can be implemented where needed will save dollars in the long run. The typical financial problems of a hospital that need to be monitored while improving the financial performance of hospitals are outlined below:

• Reduce overall spending
• Utilize high tech tools to achieve optimal customer satisfaction
• Quality control checkpoints in patient treatments to reduce readmission of patients
• Consultation with energy companies to find cost reductions by reducing energy consumption within all sectors of the hospital
• Waste management in the treatment of patients

It is important to regularly monitor the typical financial problems of a hospital as new technologies are continually produced to save facilities money and manpower. Implementing regular meetings to review the possible money-saving policies and products will continue to reduce overall spending. Eliminating waste, controlling costs, and finding the right balance between operational efficiency with high-quality customer service will keep improving the financial performance of hospitals. 

Ways to Improve the Financial Performance of a Hospital

Energy-saving consultations with local utility agencies can show hospitals where they can save money within their building and their operational structures. Scheduling regular examinations within the facility with gas and electric companies could show where energy costs could be reduced through using different lighting fixtures, controlling lighting, and insulating certain areas to reduce overall spending. Ways to improve the financial performance of a hospital can be as simple as reaching out to professionals who will be glad to pursue an energy review at no cost. Reviewing the rates of local energy purveyors is also an important standard to be sure you are paying the most competitive prices for energy.

Another way to reduce financial stress is by reducing suppliers to simplify inventory and ordering practices can offer cost savings while streamlining the processes of stocking cost-effective products. Ordering supplies only when needed and educating staff on cost-saving procedures is also beneficial.

Additionally, new technologies can monitor testing practices, prescription issuance, and errors which are costly problems in hospitals. Investing in this technology can help in many money-saving ventures and open up areas where errors are being made that were not considered prior to the investment.

Customer satisfaction is also important in improving a hospital’s financial performance. Patient satisfaction surveys are useful and having a customer service representative ready to address the needs of patients is crucial. Reducing stress and complications by addressing complaints immediately should be the goal.

Setting Financial or Economic Goals for Hospitals

Understanding the revenue cycle of the hospital billing is another issue that must be addressed to improve the financial performance of a hospital. When setting financial or economic goals for hospitals, they must keep in mind that reports and data must be shared on the billing side for consistent payments, low denial rates, and low accounts receivable. Patient payments must be monitored and special programs for low-income patients need to be made available to receive payment where it can be obtained. Review of the billing operations of any hospital on a regular basis can increase financial performance. 

Setting the goal to reduce testing performed within the hospital can also reduce spending dramatically. It’s been said that unnecessary or repeated testing can cost a hospital up to 5 million dollars a year. Analytics can be run to determine how much wasteful spending is being forced by testing procedures and protocols not being set. New IT products can help with determining where cuts can be made and how controls can be set. This is another example of how to set financial or economic goals to improve financial performance in hospitals. 

When considering setting goals to improve the financial performance of hospitals, it is important to remember that reducing readmissions cuts costs. In fact, reducing opportunities to be penalized by Medicare and Medicaid by keeping readmissions at a low rate saves hospitals thousands of dollars. Benchmarking performances by the medical teams to make decisions that could prevent readmission must be examined and protocols changed to prevent errors. Including input from doctors and nurses could be beneficial in keeping readmission rates low. Hospital consultants can be integral in identifying ways to improve your business and overall financial performance.

Improving the Financial Performance of Hospitals in South Florida

If you are examining your facility to improve financial performance and need assistance in setting new goals to increase productivity, Bloom Consulting Agency houses professional consultants who can quickly assess your situation and provide an individualized plan to help you meet your goals. Improving the financial performance of hospitals in South Florida in a very competitive market can be a huge challenge. We can help by answering your questions and providing the guidance you need. To get started, give us a call or use our contact form today.