Financial Sustainability Report: June 2020

This issue of the Financial Sustainability Report, sponsored by Kaufman Hall, provides a broad range of new guidance for healthcare finance leaders — including strategies around bringing back elective procedures and addressing imprtant workforce issues and opportunities — that can help them adapt and thrive in healthcare’s emerging new world after COVID-19.
 

COVID-19 recovery: The return of elective procedures

Elective surgery does not mean optional surgery: How to recover from the impact of canceled procedures
By Ezra Mehlman and Steve Lefar 
Health systems have learned many lessons from the COVID-19 crisis will provide that will help them plan for the return of “elective” procedures, many of which are vitally important to patients’ well-being.After COVID-19

Financial outlook

Hospitals require a 3-pronged response to potential challenges resulting from covenant violations
Sponsored by Kaufman Hall
By Ryan Freel, Kate Guelich, and Mark Grube
The next possible result of COVID-19’s financial hit on the nation’s not-for-profit hospitals is violation of debt covenants. Avoiding this destabilizing possibility should be a top priority for America’s hospitals.

Coronavirus and the healthcare workforce

Optimal use of APPs can enhance a health system’s post-COVID-19 financial recovery 
By Zachary Hartsell DHA, PA-C, Dane Ficco and Laurie English
Organizations that had a well-established plan in place prior to the COVID-19 crisis for deploying advance practice providers have been able to effectively draw upon that resource in responding to the crisis. Their experience underscores the potential benefits of such a strategy.

3 objectives for an innovative and practical revenue cycle work-from-home program 
By Michael Duke
The healthcare industry has been forced to pivot from face-to-face interactions with staff to virtual communication. The question is this:  Will remote work become the new normal if it can be fine-tuned so there is no loss in staff productivity or effectiveness?

6 steps toward compensating primary care physicians for their true value  
By John Rezen, MHA, LSSBB, CRCR
Even as primary care physicians stand courageously on the frontline in the battle against COVID-19, industry observers are raising concerns that their practice may not be sustainable under the current payment system. 

Case study: Performance improvement

How Orlando Health improved its bottom line by optimizing observation services  
By Richard Basaly, MD, Larry Volkmar, Kris Szewczyk, Barton Richards and Poonam Patel 
Bringing together “huddles” of clinicians for quick reviews of the status of patients under observation was just one step that enabled a Florida health system to shorten length of stay for these patients, thereby reducing costs by tens of millions of dollars. 

Commentary

Why now is the time to revisit your strategic facility investment plan  
Paul T. Breslin, MBA, PMP 
Healthcare organizations that are making dramatic changes in operations to address the pandemic on a day-to-day basis also should begin planning not only for the restart of normal operations over the next few months, but also for their long-term futures.

Physician Viewpoint

What we should learn from the coronavirus experience 
Martin H. Bluth, MD, PhD 
COVID-19 presents healthcare leaders with an opportunity to confront and internalize larger realities to benefit humanity, regardless of ideological differences.

News

CMS acts to limit losses for participants in value-based payment programs during COVID-19
By Rich Daly
The Centers for Medicare & Medicaid Services announced on June 3 a series of tweaks to Medicare value-based payment models to limit financial risk for provider participants.