Hospital revenues are declining, costs are increasing and forecasted volumes are shrinking.
The Patient Protections and Affordable Care Act of 2010 focused attention on eliminating waste in the system. This law also mandated reductions in Medicare payments. As we all know, the shift to value-based payments will focuses on outcomes rather than episodes of treatment and testing.
Maintaining and increasing operating margins over the long term requires daily attention and decisive action in managing revenues and controlling expenses. To be blunt, all of us on the provider side of healthcare must change the way they do business.
In the short term, providers can take several actions to improve margins. These include…