recommendations to improve the financial performance
“Explain strategies and recommendations to improve the financial performance of a hospital. The strategies and recommendations should be as specific as possible and include identifying resources which are necessary to implement the strategies. Also, describe the outcomes expected from implementing your recommendations. Here are the hospital specifics and current situation:
You have been the CEO of Middlefield Hospital for two and a half years and finally resolved the workforce challenges which plagued the hospital when you first arrived. In a recent meeting, the Chief Financial Officer (CFO) has indicated that the financial performance of the hospital has been deteriorating over the last six months. The hospital is not meeting its budget and he is concerned about the future. The new facility across town has continued to cut into Middlefield’s market share by admitting more patients. The number of admissions to Middlefield Hospital is declining each month and more uninsured patients are seeking services at your facility. You convene the Middlefield Hospital management team and discover a few interesting facts which are identified below.
1. The payer mix of Middlefield Hospital is comprised of more and more Medicare, Medicaid, and uninsured patients and less patients have commercial insurance. This is reducing overall reimbursement and net income for the hospital.
2. The nearby hospital which competes with Middlefield has opened a Wellness Center which offers a comprehensive array of preventative and wellness services to the community. This facility is attracting young families to seek services at this location.
3. Most of Middlefield’s managed care contracts are more than 2 years old. There is little reliable utilization and reimbursement data available. No one at Middlefield Hospital is assigned to manage these contracts or maintain ongoing relationships with managed care companies.
4. The Joint Commission survey is scheduled for next year and there are significant problems with the hospital’s quality improvement program.
5. The health plan offered to employees is getting more expensive each year. In fact, the costs are increasing at a rate of 20% each year. This is adding significantly to the hospital’s operational costs.
6. The inpatient mental health services and neo-natal intensive care unit continue to lose money for the hospital. ”
The Board of Directors has asked that you provide a 750-word report (double spaced in APA/or other Devry approved format) detailing your strategies and recommendations to improve the financial performance of the hospital. The strategies and recommendations should be as specific as possible and include identifying resources which are necessary to implement the strategies. Also, describe the outcomes expected from implementing your recommendations. Your primary text and journal/website research must be used as a reference to support your analysis. Use at least 3 references.