In the ever-evolving landscape of healthcare, the challenge of balancing cost control with growth has never been more critical. On September 4 at 10 am CT, Craig Deao’s will present, “Playing the Long Game: Moving Beyond Cost Cutting”. During his presentation he will address this crucial balance, offering a fresh perspective on how healthcare systems can enhance their value and performance.
Traditionally, healthcare organizations have reacted to financial pressures by focusing heavily on cost-cutting measures. This approach, while seemingly practical, often yields limited results. A staggering 89% of hospitals currently have cost-reduction plans in place; however, only 6% of these programs are deemed effective. Clearly, a more dynamic strategy is needed.
Deao emphasizes that, rather than relying solely on cost-cutting, healthcare systems should also invest in growth strategies to achieve long-term success. Growth can significantly impact both immediate and future value creation, offering a range of benefits:
- Revenue Growth at Constant Margins: By increasing revenue while maintaining existing profit margins, organizations can enhance their overall financial health.
- Higher Margin Service Substitution: Shifting focus from lower margin to higher margin services can improve the bottom line, leading to more sustainable profitability.
- Expansion in Higher Margin Services: Increasing volumes in services that offer higher margins can boost both top-line and bottom-line results.
For those seeking to transform their approach to healthcare management, embracing these insights could be the key to thriving in a challenging environment. Registration is free and only available for SDAHO members.
Click here to register.
