Is your hospital’s sustainability at risk? In our video, partner Duane Fitch shares the top three warning signs you should be aware of and how we can help those in crisis develop and implement financial, operational, and strategic plans to guide a transformation journey. These restructuring transformation journeys are focused on quick action and execution that allows hospitals like yours to attain sustainable performance improvement and increased profits.
Continue reading below for the complete video transcription.
Although no two situations are alike, there're often common warning signs that hospitals and their board of directors and executive teams should be on the lookout for as they evaluate their performance.
Is your hospital sustainability at risk?
Know the warning signs, these include:
- Critically low cash balances
- Noncompliance with debt agreements
- Reduced inpatient-outpatient volumes
There are a variety of what we call warning signals that the hospital might want to engage in a transformation or restructuring journey. As an alternative to divesting the hospital, whether voluntarily or involuntarily, hospitals can consider engaging a turnaround team to assist with the journey of improving their clinical and financial operations. This is a long-term, oftentimes difficult project, but it has the benefit of maintaining healthcare resources in the community for the benefit of that community.
Hospital transformation journey
Our approach is to balance the revenue with the expenses, and that could be difficult on the front-end. But we recognize that we cannot sustain a hospital through expense reductions alone. Therefore, we focus on building clinical services is in areas of centers of excellence in order to distinguish that hospital from its competitors and drive additional volume and financial success to the organization. A turnaround team may be necessary for a period of time to develop and implement financial, operational, and strategic plans in order to guide the transformation journey.
We focus on building clinical services is in areas of centers of excellence in order to distinguish that hospital from its competitors and drive additional volume.
At Plante Moran, we look to work with our clients in order to see all aspects that will impact the hospital, and we evaluate them through the lenses that you, as the board of directors or the management team, would use. That is our operating principle and ultimately, the provision of healthcare in the lowest possible cost setting in a high-quality environment with high patient satisfactions is the key to success in a transformation journey.
If you would like to discuss your transformation journey, please contact us today.