Becker’s suggestions for hospital financial improvement

Becker's Hospital Review recently published a list of suggestions to improve hospital financial efficiency.

Today, it seems like everyone has their own opinion on how to aid financially ailing care facilities. However, these suggestions are rarely sustainable, or can cut into a facility's main sources of profitability. Instead, Becker's  Hospital Review decided to focus on concrete steps that have been proven to help facilities increase revenue. 

Becker's first suggestion is to examine the hospital's supply chain for redundancies or areas of improvement. For example, there is often conflict between orthopedics or cardiologist departments and purchasing regarding the type and model of medical devices being ordered. Hospitals must be aware of their provider's preferences in devices, but should also be mindful of opportunities to standardize the products being ordered. Instead of using a "nickel and dime" approach with providers, consider having a sit-down to discuss the advantages and price points of different devices, and see if the hospital can receive any discounts by convincing physicians to settle on a standardized device for the facility. 

Performing a thorough review of the facility's contracts can also uncover some cost-saving opportunities. Becker's suggests going through all contract services, from laundry to vending, to determine if the facility is over-paying for any services. Depending on how dire the financial situation is currently, renegotiating contracts or opening a bid for new vendors can lead to new, more affordable contracts being supplied. 

Outsourcing receivables management can also lead to a sharp decrease in the dollars released to bad debt write off. This decision can also result in a more manageable claim load per collector, increasing the overall efficiency of claims collections.