Stretching Outside of the Four Hospital Walls
Not long ago, adding more patient beds was the principle capital expenditure for many health systems and hospitals. But in today’s environment of value-based care, that has changed.
Healthcare leaders are shifting their capital strategies. According to “Reevaluating capital spending strategies”, from Healthcare Finance News, “As healthcare reimbursement shifts from a system that rewards quantity of care to quality of care, the onus is on the CFO to determine where best to allocate financial resources.”
Now, in order to provide care outside of traditional settings, systems focus on outpatient care and deploy capital to acquire physician practices that grow their reach. Systems are also more prudent about equipment purchases and work to share equipment between facilities.
The article confirms that changes in payment and reimbursement incentives are propelling hospitals to a value-driven healthcare model, one in which they have to determine optimum resource allocation AND future needs.
Warren Forgey, CFO and executive vice president of fiscal services and business development at the Schneck Medical Center notes in Healthcare Finance News that “Today’s clinically integrated network of healthcare is a coordinated effort (that)…must be efficient and navigable.”
As healthcare leaders extend care to new facilities and become more conscientious about sharing equipment, pharmaceuticals, supplies and more, physical integration becomes a much larger priority. The reality is that an integrated and connected healthcare transportation system allows healthcare organizations to send items between facilities without waste or overlap. Physical integration facilitates centralization of other functions and provides visibility and control.
We have entered the era of value-driven healthcare. That means determining optimum resource allocation for future needs. To maximize their new capital spending strategies, smart healthcare leaders have to determine where to best allocate their financial resources and ask themselves if their network is physically integrated enough to reach beyond the four hospital walls.