Report of strategies and recommendations to improve the hospital’s financial status
In my analysis of the problems now facing the hospital, I have pointed out key areas that continue to lose money for the hospital and ways to improve on the now running systems to improve efficiency. It is clear that the hospital continues to lose patients and with the patients significant income. There is an array of issues causing this in my opinion but I very well agree with the recent audit. In this spirit I present this report which in my best opinion will go miles to overcome our current situation and even better it.
I believe that it is high time the hospital undertook a serious bench marking exercise. It is important to keep the hospital trendy and up to date with the latest in modern healthcare practices. This will not only help us in competing better in the market but will also increase the efficiency of our services and the general company outlook. A good example is with the fitness and wellness center currently running in one of our competing hospitals. Having a fitness center in the hospital will definitely increase the flow of patients and with that our financial situation. Encouraging members to take up membership to the wellness center that will tag along with free medical checkups and discounts on services once you are a member will also widen revenue streams.
It is also paramount that we look at our labor force. In order to run an efficient business it’s important to keep a well efficient work force. Though I believe axing some of the labor force is necessary I would not advise you to do this unless completely necessary. Finding areas to improve on efficiency and service delivery will create a happier and more efficient work force.
Using data from the recent audit carried out it is clear that some departments here only cost us more money. I recommend downgrading them to eventually do away with or create a different unit out of it. The data suggest that the revenue collection from the inpatient mental unit is significantly low compared with money used to run the department. Down grading the staff and facilities to make way for more efficient and money bringing departments will go a long way to improve revenue collection?
A big part of the money raised is being used to pay for the employees’ healthcare plan. This seems like an expensive venture to me and I would recommend that the annual increments be done away with and an increment be on the basis of percentage of total annual revenue collected.
I plan to also go over the annual financial reports paying closer details to our budgetary allocations. My aim is to find how much we spend in detail and how much we are getting back in return. I expect to find redundancy and unrealistic amounts paid for simple services. This will be dealt with promptly and hopefully widen the revenue stream.
It is also important to put the purchases the hospital is making into the lime light. In times like these the hospital needs to think of purchases that widen the revenue stream even wider. Liabilities or long term projects should be put on hold till we get ourselves out of the gutter. We should in turn look to make the more efficient purchases that promise to bring better income.
Shipping costs are costing the hospital a lot of money. Materials that are easily available should not be shipped. We should also consider contracting a shipping company permanently as yearly contacts are cheaper than on demand shipping like we are used to.
We should also hold a meeting with relevant stake holders to discuss the payer contracts that are now over two years old. Renegotiation of these terms will save the hospital a lot of money. Finding cheaper alternatives for the expensive contracts is also essential. But none so more than maintaining the trusted quality that our facility prides itself in.
An overhaul of the entire pricing range should be put into consideration. These have not been reviewed in a long time and reviewing them will better customer relations as well as improve the patient flow.
A strategic plan involving all major stake holders should be formulated as soon as possible. In the plan the hospital should include both short term goals and long term ones that they need to accomplish in the set time period.
These are a few of my thought that I believe the company should implement in order to move the hospital forward. I would appreciate any and all forms of feedback on more area and how best to about this.

References;
1. Physician Compensation: Models for Aligning Financial Goals and Incentive by Kenneth M. Hekman.
2. Financial Management Strategies for Hospitals and Healthcare Organizations edited by David Edward Marcinko, Hope Rachel Hertico
3. Getting Health Reform Right: A Guide to Improving Performance.