Majority of the distresses in hospitals-both small as well as large-are not identified in the early stages since the management or board does not take action till there is a crisis or a huge drop in the inpatient/outpatient volume. At times there are unexpected dips in the daily cash on hand. Majority of these issues are smartly solved with the help of professionals who can help in hospital turnarounds. These professionals, when brought in on time, would offer the best possible results in a faster manner. However, unless they are brought in at the earlier stages, it is quite challenging. Experts of hospital turnarounds suggest that this job has to be begun with a very strong leadership with a good community support.
Crucial Steps to for Hospital Turnarounds
The following are suggested by experts of hospital turnarounds for an effective management of any situation:
- Finding Right Leaders: Some of the CFOs and CEOs are ideal for better times, but lack proficiency and persistence to turn around the ailing business effectively. It is highly crucial to have energetic and effective leaders who are familiar with all dynamics of the hospital turnarounds. Turnaround experts help the board and assist in an interim or a permanent leader with such expertise.
- Renew or Create Strategic Plan: Planning properly prevents panic. Either create one or renew the existing plan with professional help and by having a fresh view at the goals of the company based on the recent setbacks.
- Multi-Tasking: One of the essential steps for hospital turnarounds during times of operational and financial turmoil is to tackle the issue from various perspectives, which include local fundraising, raising capital from investment community, evaluate new revenue streams, and to enhance the quality.
- Reduction of Cost: The board must evaluate every cost and if required, should cut staff that are not necessary. Lowering cost of supply chain, imposing purchase contacts, and examining the current vendor contracts can also contribute to cost reduction.
- Revenue Cycle Management: Hospital turnarounds experts can help with documentation reviews, chargemaster updates, coding training, etc., which can result in accurate charges.
- Customer Satisfaction: Targeting excellence and pursuing joint ventures to enhance quality and to have high-margin patient services and diagnostic services would bring credibility to the hospital.
- Staff Turnover: boosting the employee morale and decreasing turnover can achieve sustainable hospital turnarounds. Turnaround professionals contribute greatly by helping the board to have innovative programs to reduce the rate of runaway turnover.
It is highly essential for the board members to identify early stages of crisis and opt for professional turnaround supports to enjoy high-intensity support in the strategic plan and approach to avoid bankruptcy.