By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    stress disorder
    5 Ways To Manage Post-Traumatic Stress Disorder
    October 27, 2021
    Medical device classification and development strategies
    Medical device classification and development strategies
    April 5, 2023
    varicose veins
    Varicose Veins Prevention: 3 Lifestyle Changes to Make Right Now
    May 1, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Is Your Health Organization Prepared for Accountable Care?
    December 18, 2013
    CMS penalties
    CMS to Begin Implementing Payment Penalties Tied to Patient Outcomes
    July 16, 2014
    Call to Action: America’s Health Rankings Senior Report
    May 20, 2015
    Latest News
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 2025
    Strengthening Healthcare Systems Through Clinical and Administrative Career Development
    June 13, 2025
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Healthcare Pendulum, Has It Swung Too Far?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Business > Finance > Healthcare Pendulum, Has It Swung Too Far?
BusinessFinance

Healthcare Pendulum, Has It Swung Too Far?

philcsolomon
Last updated: February 15, 2013 9:10 am
philcsolomon
Share
4 Min Read
SHARE

 

 

Does your healthcare system have a balanced approach to cost containment versus revenue capture?

Healthcare systemIf the pendulum swings too much in either direction, the viability of the healthcare organization is at stake. We are just now dipping our toes in the water as we begin to experience the changes that healthcare reform has brought to us. In 2013, hospital executives and CFOs must be more vigilant than ever in their efforts to reduce hospital costs and capture every dollar of reimbursement possible.

Becker’s Hospital Review highlighted an article sharing the insights from a very successful CFO at the Boston Academic Medical Center. Chibueze Okey Agba, who as CFO has been instrumental in improving the financial outlook of the Medical Center by orchestrating an impressive financial turnaround.

More Read

Medical Search Marketing
Is Your Website Keeping Patients Away From Your Medical Practice?
Does the Doctor Need a Boss?
What We Still Don’t Know About ObamaCare
What Does Transparency in Healthcare Mean to You?
The Ultimate Guide for Finding and Editing Images for Your Medical Website

While flat volume growth spanned across the city, net income at the Medical Center increased by 46 percent, or $25.3 million. The organization achieved a reasonable margin by focusing on cost containment, Agba explains.

Agba highlights two ways to reduce hospital costs and improve a hospital’s financial foundation.

Focus on what you can measure: To reduce hospital costs and improve revenue, CFOs need to focus on areas they can measure and affect. Leaders must be able to measure to know that they’ve succeeded. For Agba, he focused on working with clinical leaders to provide care at the most efficient cost.

Improve cash flow: The medical center Agba works at achieved 85 days cash on hand in 2012. It’s a sign that the hospital is receiving money faster and paying money slower, but still on time. That’s what increases your days with cash on hand.

Cost cutting and expense reduction are key buzz words when hospital CFO’s talk about building a solid financial foundation for their organization. That said, in order to operate in today’s era of healthcare reform, hospital executives and CFOs must also consider the revenue generation side of the business. CFO’s need to look toward new technologies that focus on identifying missed revenue capture dollars.

Stretching the envelope and leveraging every untapped source to increase revenue collection hasn’t been a healthcare finance and revenue cycle executives first priority. Now, with our current economic environment, identifying every possible missed collection opportunity is critical. Often, reducing costs is as easy figuring out which numbers on the P&L to eliminate. Identifying hidden revenue sources is not as clear cut.

Agba’s perspective on healthcare’s future – the most challenging time is yet to come.”I believe 2013 is just the beginning of an even more challenging period for healthcare. The impact of the Affordable Care Act and the fiscal cliff-related measures Congress enacted will be significant to AMCs”. Today’s hospital CFOs are going to have to continue to focus on measurable efficiency in order to meet those the financial challenges in the coming years.

Source: Becker’s Hospital Review, January 2013

The post Healthcare Pendulum, Has It Swung Too Far? appeared first on REVENUE CYCLE NEWS.

 
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

recovering from injury
Rebuilding After Injury: Path to Physical and Emotional Recovery
News
June 22, 2025
scientist using microscope
When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
Global Healthcare
June 18, 2025
How Therapy Can Improve Your Mental Health and Daily Life
How Therapy Can Improve Your Mental Health and Daily Life
Mental Health
June 18, 2025
healthcare facilities
Preventing Contamination In Healthcare Facilities Starts With Hygiene
Global Healthcare Infographics
June 15, 2025

You Might also Like

The Joint Commission TJC
BusinessHospital AdministrationPolicy & Law

The Skinny on TJC Accreditation

September 13, 2014
Business

Why You Need Insurance – And What Kinds You’ll Need

December 23, 2019
Alternative to ACO
BusinessFinanceHospital Administration

Don’t Like the Sound of ACOs? Here’s an Alternative

October 2, 2014

Hospital Infection Rates Decreasing

November 8, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?