A message from Harris Affinity Executive Vice President Stephanie Goetz about hospital service line profitability analysis for financial recovery
2021 is now in full swing and the focus is on “recovery.” Many hospitals experienced moderate to severe financial setbacks in 2020 as a result of the COVID-19 pandemic. The consensus among hospitals CFOs is to accomplish a 10% reduction of operating costs over a period of 12 months as part of a financial recovery strategy.
As the financial impact of COVID-19 was first being experienced in 2020, organizations shifted into “survival” mode. Implementing cost-cutting strategies such as reducing employee benefits/executive salaries and furloughing/ultimately laying off employees.
COVID-19 is not going to disappear and staying in “survival” mode is not sustainable. We must move from “survival” mode to “recovery” mode. As this shift into “recovery” mode happens, it will be critical to have a decision support solution that can give you the insights required to understand how the margins of specific service lines within your hospital will be impacted. I truly believe the Harris Affinity Decision Support Solution (ADS) can help hospitals identify where action can be taken that will deliver the desired result of optimizing cost.
Hospital service line profitability analysis is not about simply “cutting costs.” Strategically managing resources that will support growing and diminishing volumes while maintaining high quality standards is the answer. To do this, you must have the experience, insights and tools necessary to provide clear financial and operational intelligence. In addition to having the right tools, you need to know how to use them.
The Harris Affinity Decision Support Solution is key in a successful financial recovery plan. With it you have timely and accurate information, which can mean the difference between positive and negative financial results. It shows dynamic profitability analysis at the service line level with labor, supply and equipment cost detail. You can create alignment of physician and hospital financial information. You can see cost detail for both the hospital based and professional based activity as it relates to service lines. Finally, what I find extremely powerful is the ability to monitor and measure the results of the solution over time.
The results of the COVID-19 pandemic may be extreme but not unfamiliar to our organization. We want to take what we do best and help healthcare organizations optimize costs without impacting the quality of patient care. Let us be part of your organization’s recovery plan.