In the last 10 years over 70 rural hospitals have shuttered their doors in the United States. This is tragic news for rural communities—dependent on and deserving of local medical care. Remember, there was a reason for the Hill Burton Act. The thing that bothers me is how many hospitals may have closed their doors with only a half-hearted effort to repair the breech and make one last go of it. Did they do EVERYTHING they could to survive? Were they absolutely sure when they closed the doors?
I am not saying that CEOs, CFOs, and Hospital Boards are not doing their best to bring their hospitals up from the miry bog. It is an unbelievable challenge to do this. And, in fact social media is full of examples of rural hospitals raised from the dead, and they should be congratulated.
But, let’s face it, most hospitals bite the dust because of one thing…they run out of money. The challenges of Medicaid, Medicare, greedy insurance and managed care companies and Obamacare are enough to make you run screaming from the room.
Revenue Cycle Management
Sometimes our human nature, which does not like change, tends to want to go with “business as usual” even when “business as usual” has been losing thousands, sometimes millions of dollars a year. I know this is true because my company often presents new, low-risk, quantifiable options to help hospitals receive more of the money they deserve. But, many of these CEOs, CFOs, and Board Members still say, “No.” Often with no other viable options. That is absolutely their right. But, here is a great hospital leadership strategy: If your hospital has been losing money, you must make a change! It will not get better if we just bug along at the same pace as before. And these changes need to be significant. Sometimes they are painful, but a good leader often has to make painful decisions.
Many rural hospitals have payer contracts that have not been reviewed or re-negotiated in over ten to fifteen years. Would you like to go 15 years in your career with no raise? I don’t think so. But, that is what you are inflicting on your hospital if you are not consistently reviewing and updating payer contracts (and vendor contracts for that matter). You are giving money away. And, think of this—you are a backwards Robin Hood. You are taking from the poor—rural hospitals starving for cash, and giving to the rich—the networks and insurance companies dripping with cash. Stop It! You may say, “I have no idea where to start on this process.” Well, we can help with a full contract assessment for your hospital. We will do as much of it—including fixing the problem—as you want us to.
If you are the CEO, CFO, or a Board member of a hospital that is losing money—it’s time to look at new options. The problem will not fix itself. We at Impact Healthcare Solutions can help you. The first thing we do is conduct a full financial assessment of your hospital. We give you an in-depth written report along with recommendations. It will give you tremendous insight into the operation of your hospital. We’ll also show you step-by-step how we can improve your bottom line. For more on how you can get a larger portion of the money your hospital has earned, and deserves, please complete the information below and return it to us. You can also call me, Kerry Goff at 251-610-7661.