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    Misc

    How to turnaround a hospital

    October 26th, 2005

    There have been quite a few successful hospital turnarounds recently:
    - Maricopa Medical Center: $12MM in debt to $25MM in the bank in 6 months.
    - Tufts-New England Medical Center: $25MM loss to break-even in one year
    - Amsterdam Memorial Healthcare: $4.7MM loss to $0.4MM profit in one year
    - Detroit Medical Center: $60MM loss to $9MM profit in two years
    - Western Suburban Hospital: $19MM loss to break even in 1 year.

    So, what's the common thread?
    The common thread is that all of these turnarounds resulted from strongly-led team-based effort on several different fronts. If there is any "silver bullet," it is this vague, difficult concept of leadership. Those who led these turnarounds did these things well:
    1. Rallied their leaders around them. And if they didn't have strong leaders already, they hired them. Hospital leadership is hard enough even in good times.
    2. Attacked the problem on multiple fronts. They simultanously cut costs (revamped staffing practices, renegotiating their credit, renegotiating supply cost), increase revenues (rev cycle management, denials mgmt, contract negotiations, new channels for referrals, marketing new points of differentiation), and improve employee morale (see how this HCA hospital did it)
    3. Focused on the key opportunities. Despite the multi-pronged approach, these leaders didn't try to solve everything at once. They focused on the high-impact areas first.

    Balancing #2 & #3 is essentially a function of how well you do #1.

    Comments:

    Comment from: Mike Ryan [Visitor] · http://www.healthvoices.com/columns/new_health_leader
    I appreciate your blog and your efforts, Happy birthday! I look forward to visiting more in the future. As a former hospital CEO involved in several turn arounds (from $18 loss to $3M profit in 2.3 years) over my career I agree with your summary and the need for priority setting and focus, focus, focus.

    Michael G. Ryan, FACHE
    Chairman
    EiG
    San Francisco, CA USA
    www.execimpactgroup.com
    Permalink 05/02/06 @ 01:09
    Comment from: ozemoje godwin [Visitor] · http://http
    i think it is a matter of team work and attitude, the determination to be part of a winning team.
    Permalink 07/27/07 @ 05:51
    Comment from: Joe Verderaime [Visitor] · http://www.innerviewstrategies.com
    This was a great article. What makes it so is the acknowledgement of #1. Simple in concept but very difficult overall. Truly a testimony to what makes a great leader.


    Permalink 04/24/08 @ 12:29
    Comment from: S Taylor [Visitor] · http://www.ibnetllc.com
    Hello.

    Good job for those hospitals! Were they able to maintain that success into 2008?

    MY OBSERVATION: There was no mention of whether the Internet was strategically integrated as part of those 'multiple fronts.' I'd guess that the methods they used were traditional or 20th century methods which in this day and time, could be short-lived.

    ~~~~~
    Now, that was in 2005 and prior.

    What success stories have there been lately for other hospitals and medical centers, especially given the decline in the health care services industry?


    Being that it is 2008, HOW would/do hospitals and other medical centers survive in today's economic environment?


    SOLUTION: Strategically integrate the Internet into the hospital's daily operations!

    ~~~~~
    To begin, look OUTSIDE of the marketing and advertising side of the Internet / Web for just a moment to REALLY recognize the strengths, global reaching power, and automation ability the Internet has available to anyone and everyone everywhere.

    When utilized MASTERFULLY, costs can be cut significantly; the hospital's increased competitive edge becomes more apparent to all as more money is freed up to fatten multiple budgets, including advertising, staffing, equipment and research; and their competitors must stop long enough to try to figure out how that hospital actually did it!

    Understanding the step-by-step details of the 'HOW' is not at all difficult. You first need to change your old paradigms and create new ones and be willing to learn from others.

    AGAIN, HOW?

    Find a global business community where you are able to ask specific questions about your particular situation and get answers 24/7. Then, seek out the profitizer's strategies and techniques.

    I found that global business community and so far, it is one of the best for any business owner, manager, business wannabes, employees who have the responsibility for improving their department's performance, etc.

    ~~~~~
    See for yourself and ask your questions there. Folks in small businesses also have great ideas. Be open to their responses, too.

    Also, make sure you stay up on the latest information here on HospitalImpact.org.


    HTH

    You can also enter that community here.

    Permalink 06/25/08 @ 18:56
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    Comment from: law blogger [Visitor]
    Hospital turnarounds in this tough economy are only possible if a high performance leader exists who has the ability to lead his team effectively. He needs to resolve the major issues as quickly as possible, and at the same time, focus on top affected areas. - legal separation connecticut
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    Very impressive, I think that pretty much the entire United States, Especially California needs to take a note from these guys. At some point you need to stop spending and repair the foundation.
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    This was a great article. What makes it so is the acknowledgement of #1. Simple in concept but very difficult overall. Truly a testimony to what makes a great leader.
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    What makes it so is the acknowledgment of #1. Simple in concept but very difficult overall.


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    I think that pretty much the entire United States, Especially California needs to take a note from these guys. At some point you need to stop spending and repair the foundation.


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    Hospital facilities built today do not include asbestos, but many older buildings still have asbestos components in them. Steam pipes, boilers and furnace ducts were often insulated with an asbestos blanket or asbestos paper tape because of their fireproof and insulating properties. Resilient floor tiles were made from vinyl asbestos. Asbestos cement was employed in roofing, shingles and siding materials. The hazard of this carcinogen increases when the fibers become airborne, and untrained contractors can inadvertently increase risks by cutting, tearing, sawing, scraping, or sanding asbestos materials. Elevated asbestos levels can occur in hospitals where old materials are damaged or disturbed. It is best to leave undamaged asbestos material alone if it is not likely to be disturbed. Inhaling asbestos fibers is known to cause mesothelioma and other diseases. Be sure to use an experienced asbestos removal contractor when you need to get rid of old materials that might contain asbestos.