Hospitals and the Recession

Everyone has been impacted by the recession, in one way or another. Whether it be job loss, budget cuts, decrease in sales, etc. every industry across the board has been impacted and every consumer has been affected.

According to this article, “Health care is the only private-sector economic activity that has added jobs continuously since the recession began.” Does that mean that healthcare has not been negatively impacted by the recession? Of course not. We are all feeling the pain, in one form or fashion.

Written by Jeff Goldsmith, Hospitals and the Recession was featured in HHN Magazine online on July 6, 2009.

“The reality is that, despite the employment growth, the U.S. health system is in recession. Inpatient hospital admissions and elective surgery, as well as physician office visits and prescriptions filled, are all down by low- to mid-single-digit amounts. Colleagues in health insurance report that 2008-2009 health costs are trending in the 6 percent or 7 percent a year range. Only during the mid- 1990s post-Clinton-reform, managed-care panic have we seen this cost trend lower for a longer period of time.”

“Health care demand actually began softening before last fall’s thunderous financial market collapse. The downturn began in 2007 and may have been a leading indicator of a spreading family-cash-flow crisis….Most hospitals report rising bad debt and charity care, as people lose health insurance coverage along with their jobs. It should concern hospital leaders that the customer is less and less able to afford their product.”

Money is of great concern for consumers, providers, insurers, etc. Consumers are less and less able to afford healthcare. Hospitals’ case volume is down. Hospitals are also going to face challenges in Medicare funding reductions and might have to run their hospitals on “regular gas”. {Be not dismayed…}

“Demand for our services, while softened, has not collapsed. Unlike the real estate and financial services sectors, we have not squandered the confidence of our customers. People in crisis appreciate that we are a vital part of their safety net, and know that we are there for them when they need us. If we can accomplish the urgent task of health reform, we can affirm that promise for all of the people of our country. The hospital industry will enter the next decade chastened by this economic crisis, but stronger for it.” {But, be wise….}

So where does this leave us? We need to do the best with what we’ve got. Hospitals need to maximize their resources. Budgets are getting tight; capital spending budgets, especially. But spending can’t just automatically stop. With healthcare, you’ve got to keep moving forward, especially in the world of technology solutions. So providers must ensure they are spending wisely.

Spend some to get some. Spend money on solutions you know are going to provide cost reductions. When possible, spend on solutions that can provide revenue increase. ComplyMD is a great budget-friendly solution for these tight times. Decreasing your cost of transcription, while building better DRG’s with comprehensive documentation, ComplyMD can save you valuable dollars while helping ensure you’re not ‘leaving money on the table’.

Does IT promote Efficiency in Healthcare Facilities?

{The right technology, in the right facility, with the right people….}

This is part one of a two part series from Modern Healthcare Magazine’s May 26 article “Providers Turn to IT for Efficiency, but is it Working?” .  Though they start off discussing IT in laboratories, I believe we can take their words and apply it to any area/department of a healthcare facility.

“Indeed, technology plays a role in productivity across the board, and the healthcare industry is no exception. From faster laboratory results to real-time electronic information in emergency departments to online ‘dashboards’ that monitor performance metrics – providers have begun to embrace automated processes to improve their operations.”

Automated processes, along with point-of-care electronic systems can greatly increase operational efficiency. The keys to success (in my opinion) are: (1) a great implementation, which leads to great adoption and (2) an already well-run facility that’s ready for such an IT implementation.

Despite the boost in efficiency that IT can bring to a facility, there are usually some major hurdles to overcome.

“Still, there are significant challenges to adopting various technologies. Critics of electronic health records have said that the technology can be confusing and hard to implement, and it winds up disrupting work and limiting productivity.”

That is a very valid point. Technology can be confusing and often disrupting. And yes, if it’s not implemented right, it could perhaps limit productivity. That’s why you must have the right technology, implemented at the right facility, with the right people who are ready for such a change. Technology implementations will always bring about change. Naturally, we as humans are often resistant to change, especially when we what we’re doing now “works”. But bottom lines aren’t maximally impacted by what “works”. Patient care isn’t improved by simply what “works.” If you want to be competitive in this day and age, you better get ahead of the curve. Your facility better be ready for change, constant change.

Web-Based Software for Healthcare IT: Know the Benefits

Some healthcare organizations are still a bit hesitant about purchasing web-based software. Why? In this age where our world is relying on the web for so much, why do we think it’s incapable of performing in a healthcare environment? In my opinion, one reason organizations are timid about an ASP (Application Service Provider) model for their healthcare IT needs, is because they don’t understand the real advantages of web-based software. ComplyMD is a web-based solution for healthcare organizations that provides users with the following benefits:

• No installation or server required
• No expensive hardware required
• No IT Management required
• Never hassle with upgrades (we take care of that for you!)
• Never deal with backup tapes
• Always available anywhere (office, hospital, home)
• Always up-to-date information
• Always secure, encrypted, backed up and redundant
• HIPPA compliance ensured

As you can see web-based applications are convenient, cost-effective and easy to manage. We take care of everything for you; all your facility does is use the application… from anywhere you have an internet connection, might I add.