Financial Sustainability Report: March 2021

The March Financial Sustainability Report, sponsored by Kaufman Hall, highlights significant changes in the nature of risk that hospitals and health systems face in the post-pandemic world, and how these organizations’ leaders should respond. Other articles explore key success factors in M&A initiatives and tactics for controlling variation in costs for surgical procedures.

Enterprise Risk

Rising risk due to COVID-19 requires a nimble response from health systems
By David Burik and Dennis Butts, Jr. 
The factors that define risk in healthcare have markedly changed with the pandemic, creating a need for healthcare executives to evaluate and update existing strategies and operations to address emerging areas of risk that previously had not commanded their attention.

Value-Based Payment

Health system leaders share top approaches for success under value-based payment
By Eric C. Reese, PhD
Three health system executives discuss the key factors that have contributed to their organizations’ long-standing success with value-based payment models.

Budgeting and Forecasting

How Scripps Health used demand modeling to prepare for the pandemic’s uncertainties
Sponsored by Kaufman Hall
By Dan Majka
Adopting rolling forecasting helped San Diego-based Scripps Heath prepare for the turmoil of the COVID-19 pandemic’s early days, and the health system has since made further refinements that have improved its ability to model future demand and guide decision-making.

Operations Management

Healthcare’s financial recovery after COVID-19 depends on data and evidence
By Dan Hermes, MBA, and John Cherf, MD, MPH, MBA
One of the greatest cost-savings opportunities for hospitals and health systems lies in controlling variation in costs for surgical procedures, a key area of focus for such an effort is the supply costs for such procedures.

M&A

Before pursuing a healthcare merger, you need to understand the process
Eric C. Reese, PhD
The drivers of today’s mergers and acquisitions differ significantly from what was driving M&A activity 20 years ago, says Anu Singh, managing director with Kaufman, Hall & Associates LLC. Read Singh’s insights into the key factors that will determine the M&A success in the post-COVID-19 world.

Patient Access

How revenue cycle teams can maintain effective patient financial services in a distanced world
COMMENTARY
By Craig Webster
Amid these challenging times of COVD-19, it is critical for revenue cycle leaders to educate themselves about best practices either created or refined during the pandemic to effectively promote patient financial engagement in today’s world of social distancing.