Operational Assessment

The operational assessment process encompasses the review and assessment of strategy, operations, staffing, supply chain, revenue cycle, finance, medical staff issues and facility leadership. The process begins with an extensive review of data and documents, coupled with one-on-one interviews with individuals on the hospital’s board of directors, its management team, department directors and its medical staff.

Areas to be examined include:

  • Operations and Expense Management
  • Clinical Services
  • Medical Staff
  • Finance
  • Capital Issues
  • Business Development and Strategy

Healthcare costs have been increasing steadily over the past few years, a factor that has made it more important than ever to evaluate and improve the operational efficiency of hospitals. As much as the primary objective of any hospital is to offer healthcare services to the surrounding community, the facilities have to ensure that their financial health allows them to serve the community for many years to come. One of the challenges hospitals face is grappling with diminishing cash reserves and declining patient volumes. In cases where those issues are not addressed, hospitals find themselves in a financial and operational performance crisis. Since this threatens the existence of the hospital, quick action is required.

Operational assessment plays a critical role in ensuring that community hospitals run efficiently. Simply put, operational assessment involves processes that detect challenges, identify the root case for those challenges, and identify a plan to make improvements. At Community Hospital Corporation, we carry out operational assessments to help identify areas where hospitals can reduce expenses and improve their net revenue. When testing the operational process of any hospital, we focus on issues such as strategy, supply chain, operations, staffing, finance, revenue cycle, facility leadership, and medical staff issues. In this way, we work with the management to determine the status of the hospital objectively. Regardless of whether a medical facility is in distress or operating well, this process will help to enhance performance so the facility can achieve its goals.

Benefits

Turnaround

Our operational assessment services offer hospitals many benefits. Here is how Community Hospital Corporation will help to ensure hospitals run efficiently and serve patients better.


The process is designed to help identify any opportunities that will ensure increased revenue and reduced costs. By looking at issues such as staffing, operations, supply chain, finance, and revenue cycle, we will point out areas that affect the performance and finances of the hospital. We will then work together with hospital management to come up with ways to improve cash collections and decrease expenses.


Part of the operational assessment process involves comparing the client hospital to similar hospitals in the surrounding area. By benchmarking to compare hospital performance, we reveal issues are specific to the facility and those that impact other hospitals as well. In the end, we will be able to make suitable recommendations on how to improve operations.


Through this analysis, we will be able to identify the vulnerabilities and goals of the organization. In this way, we will find the right ways to enhance operations and improve efficiency. The goal is to work with hospital management to ensure the risk of financial and performance crisis is minimized. In the end, the hospital will be on the path to achieving the primary goal of offering quality healthcare to patients.


A desktop evaluation and onsite assessment of the different business processes give a comprehensive view of the operations of the hospital. This is one of the best ways to establish the status and health of the facility.


Conducting an operational assessment provides a clear picture of current hospital performance. It also outlines a plan for implementation and follow through so that the hospital is firmly on the path to sustainability.

We Want to Hear from You

Contact us today to learn how an operational assessment can help your hospital improve its performance.

Path to Sustainability

We use different methods to help hospitals improve their operations and performance. Below are the services we provide to ensure that hospitals are on the path to sustainability.

 

Operations and Expense Management. Before taking any action that is designed to improve the operational processes of any hospital, we will have to evaluate the current processes to identify weaknesses and strengths, and find opportunities to boost net revenue while reducing expenses. During the assessment, we will also compare hospital performance to similar hospitals in the same area and in other similar markets. For example, we look at productivity and supply costs  since we will want to establish whether the costs that the hospital incurs deliver value for money. In this way, we will recommend ways for the facility to avoid or improve financial performance.

 

Clinical Services. Our operational improvement services also focus on making sure the hospital offers a positive patient experience. We will work with both the management and clinical staff to streamline patient care and services. Often times we are able to work with hospitals to improve patient satisfaction scores and reduce the cost of providing care.

 

Medical Staff. The importance of the medical staff in any hospital cannot be overstated. During our operational assessment, we will assess hospital-physician relations to identify any issues or concerns. After all concerns are clear, we provide strategies to involve physicians to improve hospital performance, recruit physicians as needed and strengthen physician alignment, which can increase hospital utilization.

Finance. Awareness is the first step to improving financial performance, and that is one of the primary reasons why an operational assessment is so important for hospitals. Therefore, it goes without saying that the path to sustainability will involve looking at finances. The decisions and actions of the finance department have a direct impact on the cash flow of the hospital. During the evaluation, we will carry out an internal audit to establish whether there are any leakages when it comes to revenue collection or expense management.

 

Capital Issues. With the importance of advanced equipment and recent technology increasing, the capital requirements for running a hospital are significant. Deferred maintenance, delayed equipment upgrades and old technology all impact public perception and patient care. Setting a hospital on the path to sustainability will involve looking at capital requirements and determining how best to fund necessary investments.

 

Business Development and Strategy. It’s important to focus on growth opportunities as well. We will analyze the market for opportunities to expand services and increase market share. This analysis includes a deep dive into the demographics and dynamics in the hospital’s service area. This will also encompass creating a marketing strategy that will guide the hospital into the future. Other areas of focus include physician referral development, community relations, Website enhancement, social media and other marketing initiatives.

“CHC first conducted an intensive operations assessment and developed an action plan that quickly led to a $10 million gain. CHC then identified additional IT and supply chain savings totaling upwards of $15 million.”

~Gary Looper, President and CEO, Memorial Health System of East Texas

Case Studies

Planning for Uncertainty: Wills Memorial Hospital, Washington, GA

The Situation

Wills Memorial Hospital in Washington, Ga., found itself in the midst of a perfect storm five years ago, when events good and bad converged. The hospital had completed necessary renovations, including a new patient wing, but was left with a $13 million bond debt. This debt obligation combined with years of significant losses and new healthcare regulations left the hospital in a bad spot, says hospital CEO Tracie Haughey: “We knew we were sinking and needed help.” A comprehensive operational assessment by CHC Consulting and its accompanying action...


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Blog

Turn Around Efforts Start with a Look at Operations

Hospital leaders may recognize the need for improvement but may not know where to turn. Even before a hospital shows signs of financial distress, the responsible action is to take a close look at areas of operations. Since operations span the entire hospital, a head-to-toe operational assessment may be warranted to fully address financial and performance issues.

Taking a thorough look at operations may seem daunting. Consider starting with an evaluation of outsourced contracts; some may have been in place for years and can be renegotiated or even eliminated. Below...


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