Budgeting
Most hospitals already have in place plans to cope with disasters such as tornadoes and plane crashes, but the Ebola virus presents a different challenge. Because of the risk and expense involved, a hospital's CFO should be an integral part of Ebola planning and preparation efforts.
Opportunities still exist within the healthcare supply chain for improvement and greater efficiency of operations. Lately, price alignment strategies appear to be at the forefront as the newest hope for cost containment.
Hospitals dependent on Medicaid disproportionate share allocations must discover new financing models for low-income patients, or else lobby their state governments to make policy changes.
As cost control initiatives take on increasing weight at hospitals and health systems, organizations must focus more intently on stemming the costs of medical device procurement.
Hospitals' struggle for financial sustainability continues and may be getting worse, as CFOs say information technology investments draw more resources than expected and threaten to crowd out other priorities.
The ideal prescription for hospitals wanting to reduce their pharmaceutical costs could be tighter controls and staying on top of shortages.
The Texas hospital that wrongfully discharged now deceased Ebola patient Thomas Eric Duncan is already experiencing financial repercussions from the clinical slip-ups associated with the deadly virus.
A strong central leadership model is the primary differentiator between successful healthcare cost improvement initiatives and ineffective ones. This principle has three accompanying elements required to establish and manage a successful cost improvement program.
The powerful California Nurses Association has put Ebola on the bargaining table in its negotiations for a new contract with Kaiser Permanente. The health system hasn't responded to all of the CNA's demands.
Variations on traditional group health insurance via insurer-administered self-funding remain the norm for many large employers. But some health systems are considering alternatives in the face of high costs, new regulations and demand for more choice.