What if your McKesson Hospital runs out of money? Yes, it could happen...

[McKesson Social]

I don't have all the answers when it comes to the large topic of healthcare costs, but I want to make a few things clear that are relatively straight forward that I know for a fact to be true.  In a former life, I spent time working with hospital revenue cycle products at a number of facilities.  Here are two simple facts...

1) State and federal insurances already pay incredibly little for large hospital bills.

2) Obamacare is looking to shrink those federal payments even more, shrink the amount of people on private insurance and pay for it by saying there would be more people getting new coverage on plans that we already know will pay very little.

So what does this add up to?  Less money coming in.  And who is going to pay?  Private practices and, yes, hospitals.  This is a basic viewpoint of the policy but the concepts hold weight.

Now that we've looked at what's coming, let's talk about what your hospital can do to prepare in a world where every penny matters tremendously...

We need a shift in goals to provide better patient care and save money

Anyone who works in the healthcare industry will tell you that there number one goal is patient care, as it should be.  The truth is though, you can't provide care if the hospital can't afford the overhead to provide it.  That's why we need a fundamental shift in the way we look at our systems.  We need to provide best care and, just as importantly, do it efficiently.  People can't forget that hospitals are not just a place to provide care, they are a business.  Once that shift in core values takes place, we'll be thinking in terms of what we can do better as an organization which is fundamental to the success of providing better patient care.

 

Start thinking about Analytics  

Hospitals now are realizing the importance of efficiency not only in providing better patient care, but in saving valuable dollars.  While there are a number of reports out there that you can create to provide valuable census data, think also about third party companies that specialize in dissecting big data (feel free to send me a message on my profile for my recommendations--not looking to place any promotions in this post).  People continue to forget that hospitals are businesses.  If there day to day operations are not practical, then it's just adding to overhead and as they say in business, you can't eat overhead.

That being said, see what you can do with your McKesson system  

Do you have a third party vendor doing something that your current system can already do, but it's just not setup?  While your first reaction may be that it's a "nicer toy", think about the monthly expenses it may be costing to keep it going.  If it's a vendor that you know you're saving money with by having them, by all means, keep it.  I'm just pointing out that it's important to ask the question.

Most importantly, get back to basics  

The biggest problem in our industry is that when inefficiencies are seen and money is thrown out the window, the common reaction is, "that's just the way it is".  We're headed in a direction where we can't afford to look at problems that way anymore.  Why?  Because that money won't be there to waste.  So take the time to ask the question in your department - how can I save us money?  Are you a decision-maker at your facility?  Organize your team and make sure to give accolades to those who bring new, fresh ideas to the table that can help the hospital shave costs.  What's ironic is that often times, the best ideas are the simplest ones.  The time for action is now - people just don't realize it yet...

I want to make it clear that the goal of this is not to scare anyone.  The goal is to make sure people are informed and start thinking proactively about the direction we're headed.  This system is not sustainable.  Hospitals will be pulling in less in revenues year of year--it's only a matter of time.  As I've always said, my number one goal is to get people to realize that a great piece of software can save a life the same way a proper diagnosis can.  Well, it can also save money.  Now is the time for you to do your part to figure out how you can do the same for your facility.

 

The Health IT Social blogger has worked in the healthcare industry for the past seven years.  

His goal is to get people to understand that a great piece of software can save a life the same way a diagnosis can...

 

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