Industries

There are a number of reasons why a healthcare organization should prepare for increasing volumes. The population is growing and aging, and admissions are expected to continue to rise for at least ten years. Although technology is likely to have a mitigating impact on average lengths of stay, inpatient days may continue to rise. Hospital-sponsored diagnostic and treatment services are also likely to increase, although there will be significant shifts from modality to modality as new technologies become available. However, not all increases in volume are necessarily beneficial to an organization. If it is currently losing money in its chronic heart disease program, adding volume may only increase its losses.

To prepare for such volume increases, healthcare executives must be able to answer a series of questions, including

• What are your current programs and their respective volumes?
  
• What market share is owned by each program?
  
• What, if any, contribution margin is generated from each program for each payor category?
  
• How are the market demographics likely to change over the foreseeable future?
  
• What can be done to improve the profitability of less productive programs?
  

The Healthcare Services Team of RSM McGladrey helps healthcare organizations across the country answer these and related questions. Our healthcare consultants have assisted numerous organizations in all aspects of strategic planning and can lend this experience to provide an objective evaluation of your organization’s current and potential portfolio of services.

Our Approach
Our approach to Revenue and Volume Enhancement is divided into three phases: Diagnostics, Strategy Formulation and Implementation. We begin by helping you to determine the relative values of the entire portfolio. Then we assist in formulating strategies that are designed to move selected programs to better positions within the matrix. In the final stage, we prepare an implementation plan with metrics, time lines and responsibility assignments for executing each approved strategy. Using this approach, we can help you identify and prepare for areas of volume enhancement.

Contact
James E. Hosking, FAAHC, FHIMSS, CHE
Managing Director
312.634.7104

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