THE FINANCIAL TRANSFORMATION OF THE HEALTHCARE INDUSTRY
The current healthcare market is experiencing unprecedented pressure from government, employers, and the public, to reveal pricing, reduce costs, and improve performance and quality. However, healthcare organizations are finding that
traditional costing systems provide little insight into the sources of costs and the possible outcomes of potential changes, which could help them to achieve strategic goals.
Healthcare providers need to change the way they perform from a financial perspective. In other words, they need to undergo a Financial Transformation.
Financial Transformation:
- Improves bottom-line performance.
- Enables profitable growth.
- Improves the efficiency and quality of operations.
- Embeds cost improvement as a strategic imperative in the organization.
- Designs processes that can enhance service quality.
- Builds a mechanism for pay-for-performance programs.
- Stabilizes the financial platform that enables the delivery of quality care.
- Conforms to the recent legislation relating to transparency and disclosure of health and hospital charges.
However, financial transformation is widely viewed as a daunting process to undertake.
|
How to Undertake a Financial Transformation Initiative:
1. Establish a vision and decide what you want to accomplish.
2. Select an enabling technology (ExactCost®).
3. Determine your true costs.
4. Identify areas to reduce costs.
5. Develop a performance management culture and strategies for improvement.
6. Implement changes.
7. Commence ongoing monitoring of performance and achievements.
|
