HIMSSCast: The financial pressure for hospitals is not abating in 2023
Focus on what you can control, say Alvarez and Marsal Managing Directors Peter Urbanowicz and Martin McGahan.
Photo: Tetra/Getty Images
The financial issues hospitals began to face at the start of the pandemic aren't going away anytime soon, according to managing editors of Alvarez & Marsal, who advise healthcare executives on the best ways to move forward.
The pandemic exposed the stresses in the supply chain, of staffing and of establishing safety net issues, said Managing Director Martin McGahan.
To cut expenses, it may be time for hospitals to rethink being all things for all people, said Managing Director Peter Urbanowicz. "The bottom line is CEOs and CFOs must determine how to balance their service offerings against dwindling financial resources," he said.
To hear about this and new approaches to capital investment, listen to McGahan and Urbanowicz in a conversation with Healthcare Finance News Executive Director Susan Morse.
Talking Points:
Higher interest rates are making it more difficult to access capital.
Reimagine the capital budget instead of rolling it over from one year to the next.
CFOs should make sure they make they don't have a capital plan that's more than three months old.
Federal funding has stopped heading into the post-pandemic world, but high labor costs, inflation and other stressors remain.
Every strategic plan is a balancing act.
Procedures and surgical volumes are not returning to pre-pandemic levels.
The longer trend is care outside of the hospital.
More about this episode:
Health systems need to balance their service offerings against dwindling financial resources
HIMSSCast: To cut expenses, hospitals should look at indirect spend
Amazon Business offers hospitals a supply chain alternative
Hospitals need a battle plan for end of Medicaid's continuous coverage
Suffering margins threaten credit ratings for nonprofit hospitals, finds Fitch
Twitter: @SusanJMorse
Email the writer: SMorse@himss.org
