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Hospital Finance

To change nursing assignments and transform workforce management, hospitals need to plan differently!

Posted by | Healthcare Cost Savings, Hospital Finance, Innovation | No Comments

Massachusetts, New Jersey, Ohio, and Pennsylvania are getting ready to vote on legislation to mandate nurse-patient ratios like California did.

We learned from California that without a sound workforce planning methodology that can be consistently executed, hospitals won’t obtain the benefits of the increased staff [1].

The Nash Group SDM20/20™ planning methodology is proven to:

  • reduce labor cost $2M-$8M
  • dismantle consumption of premium dollars
  • advance patient placement and aggregation
  • improve patient disposition and reduce length of stay
  • increase staff retention 20%-40% and improve recruitment cycles
  • make workforce operations and schedules sustainable

[1] Petsunee Thungjaroenkul, Greta G. Cummings, Amanda Embleton, “The Impact of Nurse Staffing on Hospital Costs and Patient Length of Stay: A Systematic Review”, NURSING ECONOMIC$/Sep-Oct 2007, Vol. 25, No. 5

To lower cost, healthcare providers need to plan differently!

Posted by | Hospital Finance, Innovation, Nursing Staff, SDM20/20TM | No Comments

Unrealistic workforce management plans cost healthcare organizations millions of dollars in labor. As this cost continues to be pass to consumers through increases in insurance premiums, they are demanding sustainable changes.
Execution cost that normally accounts for 20% of the bottom-line of hospitals and 35% of outpatient facilities is where sizeable labor changes need to be acquired.
A workforce management planning methodology (see below) that can be consistently executed and that delivers between $2M and $8M in labor savings is mandatory to meet sustainable labor operations.

Think drug costs are bad? Try hospital and professional service prices!

Posted by | Hospital Finance, Uncategorized | No Comments

Some pharmaceutical companies said they’ll delay some of their price increases under pressure from the government. But hospitals and care professionals have made no such concessions, even though they make up a much larger share of total health care spending. Hospitals and care professionals are not going to hold off on price increases!

Drug makers pledges to hold price increases are political bandages with little real effect on patients’ pocketbooks, but hospitals and care professionals cost increases hit them harder! Hospitals prices have grown somewhat slowly over the past few years, but slow growth of high prices leaves high prices.

Some hospitals and health systems argue that they are limiting increases to below 3% annually, but the net effect is well over 5%. And the cost isn’t going up because we’re using more health care, but because of the prices we pay for those services.

Obamacare faces new life-threatening conditions

Posted by | Health News, Hospital Finance | No Comments

Opponents of the Affordable Care Act have been busy. In the midst of several headline-making events on other issues, the Trump administration has instigated two major efforts to effectively do what Congress could not do earlier this year — repeal Obamacare.

The result is a laundry list of warnings for all health care consumers, not just those who buy insurance on the ACA exchanges. The moves are a return to the bad old days before insurers had to adhere to standard regulations that protected consumers from paying insurance premiums, only to find coverage wasn’t there when they needed it.

Here’s a closer look at the latest changes to the health insurance marketplace: [Article]

Electronic Health Records Were Supposed to Cut Medical Costs. They Haven’t!

Posted by | Health News, Healthcare Cost Savings, Healthcare Data, Hospital Finance | No Comments

Despite the promise that electronic health records would cut billing costs, savings have yet to materialize, according to a major new study by researchers at Harvard Business School and Duke University.

The study, published in the February 20 issue of the Journal of the American Medical Association, looked at five types of visits: primary care visits, ER visits resulting in a patient discharge, general medicine hospital stays, outpatient surgical procedures, and inpatient surgeries.

Findings included:

– A primary care visit necessitated 13 minutes in billing and insurance-related activities, costing $20. The time and cost ramped up to 100 minutes and $215 for an inpatient surgery.
– Just the physicians’ portion of the time and cost spent on billing amounted to 3 minutes and about $6 for a primary care visit, up to 15 minutes and $51 for surgery.
– Physicians, who cost between $3 and $8 per minute, are doing administrative tasks that ascribe costing 50 cents a minute could do better, Kaplan says.

Hospitals offer big bonuses, free housing and tuition to recruit nurses

Posted by | Health News, Hospital Finance, Nursing, Nursing Staff | No Comments

Hospitals and other medical facilities are getting so desperate to recruit and retain nurses they’re offering all sorts of pricey perks and incentives.

“Five-figure signing bonuses, free housing, college tuition for employees and their children!”

“These are some of the grandiose examples we’ve heard from our members,” said Seun Ross, director of nursing practice and work environment at the American Nurses Association. “Who knows what employers will come up with next?”

America is undergoing a massive nursing shortage. Not only are experienced nurses retiring at a rapid clip, but there aren’t enough new nursing graduates to replenish the workforce, said Ross.

The nation’s aging population is exacerbating the problem. The American Nurses Association estimates the U.S. will need to produce more than one million new registered nurses by 2022 to fulfill the country’s health care needs.

International Transitions Homeward – A Different Approach to Healthcare Costs and Patients

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International Transitions Homeward

Undocumented, uninsured immigrants make up a significant portion of the uninsured patient population. These patients pose huge financial burdens for health systems today. Many of these patients  become trapped in the U.S. Healthcare system for years, even when that is not their intention.

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People who work in glass hospitals

Posted by | Healthcare Cost Savings, Healthcare Data, Healthcare Transparency, Hospital Finance, Tracking Costs | No Comments

Medical billThe drumbeat for transparent healthcare costs gets louder with each passing month. With the Affordable Care Act now in place, and many patients facing higher deductibles, consumers are paying attention to healthcare price tags like never before.

In a survey of more than 1,000 insured patients, Transunion Healthcare found that 55 percent have been scrutinizing their medical bills, and costs are impacting their opinions about the quality of care and their choice in providers.

According to an article in BeckersHospitalReview.com, when respondents were asked to rank the relative importance of considerations when choosing a provider, cost transparency was ranked second, right after “world class specialists and technology.”

No small factor has been the fact that last May, Read More

Two things nurse leaders always ask us

Posted by | Healthcare Cost Savings, Healthcare Data, Hospital Finance, Nursing Staff, Patient Census, SDM20/20TM, Tracking Costs | One Comment

TEMP-Image_1_4Every nursing executive faces unique challenges, but one of the biggest challenges is almost universal: the need to deliver high-quality bedside care within serious financial constraints.

Oftentimes, nurse leaders have already tried proprietary staffing software that helps them adjust staffing all day long. On the surface, that sounds like a good strategy, but too frequently nurses are sent home early or premium nursing costs are incurred. In those circumstances, costs are not predictable.

“The majority of hospitals are still budgeting to a midnight census,” says Mike Wasserman, who heads up business development for The Nash Group. “But workload is Read More