TMCnet News
Cost Transformation Is Imperative, but Hospital Efforts Lag Behind, Survey FindsSKOKIE, Ill., Oct. 16, 2018 /PRNewswire/ -- Fewer than one-in-five healthcare executives has seen cost reductions of more than five percent in any priority area in the last year. This is one of many concerning findings in Kaufman Hall's new 2018 State of Cost Transformation in U.S. Hospitals and Health Systems: Time for Big Steps report. The report is Kaufman Hall's second annual in-depth look at the priorities and progress healthcare executives are making in reducing organizational costs. The 2018 report shows that hospitals will need to take big strides and tackle more transformative initiatives. Progress is being made on some fronts, but it is slower than what many experts consider to be required of hospitals and health systems. Increasing leadership accountability
"U.S. hospitals are facing increasing pressures, so these percentages need to be much, much higher," said Lance Robinson, managing director at Kaufman Hall. "The combined effect of the shift to a new business model, competitive pressures from expanding health systems, new retail options that are siphoning off high-margin services, and the need to raise capital for strategic growth initiatives is quickly putting hospitals in an untenable position. Our hope is that this new report helps halthcare executives see where they stand in relation to their peers — and that progress needs to be made in most organizations. We also hope it provides actionable insights to help them accelerate their cost transformation efforts by tackling initiatives such as eliminating, repurposing, or redesigning capital-intensive, inefficient structures, programs, and processes." Cost reduction still focused on traditional targets The numbers skewed even higher for organizations with more than 10 hospitals, with 60 percent reporting no progress in reducing inappropriate clinical variation, and 57 percent saying no progress has been made in improving physician enterprise management (versus 44 percent overall). Keeping cost transformation a priority "Most healthcare leadership teams understand that change is necessary," Robinson said. "But they are unsure of which initiatives to tackle operationally. This year's report lays out clear focus areas for driving that transformation. Our goal for the next year is to help hospitals and health system executives make the changes needed to ensure that their enterprises are 'essential' providers in the communities they serve." To learn more about or download a copy visit the 2018 Kaufman Hall Cost Transformation. About Kaufman Hall Kaufman Hall services use a rigorous, disciplined, and structured approach that is based on the principles of corporate finance. The breadth and integration of Kaufman Hall advisory services are unparalleled, encompassing strategy; financial and capital planning; cost transformation; treasury and capital markets management; and mergers, acquisitions, partnerships, and joint ventures. Kaufman Hall software includes the Axiom Software Suite, providing sophisticated, flexible performance management solutions that empower finance professionals to analyze results, model the future, and optimize organizational decision making. Solutions for long-range planning, budgeting and forecasting, performance reporting, capital planning, and cost accounting deliver decision support, reporting, and analytics within an integrated software platform. Kaufman Hall's Peak Software empowers healthcare organizations with clinical benchmarks, data, and analytics to provide a higher quality of care for optimized performance and improved patient outcomes. Press Contact:
View original content to download multimedia:http://www.prnewswire.com/news-releases/cost-transformation-is-imperative-but-hospital-efforts-lag-behind-survey-finds-300731668.html SOURCE Kaufman Hall |