Becker's Hospital Review

51 Executive Briefing: Turnaround Strategies Revenue cycle. Mr. Weber says hospitals' revenue cycles have "gotten much more complicated" through the years, and this area should get a close look during the assessment. "That had a dra- matic impact on our cash position," Mr. Humphreys says. "It in- creased our cash flow." Overall, ARMC saw an immediate $6 million improvement in its operational profile, thanks to the operational assessment and changes made over a 20-month process. Tips to make change While insights gained and suggestions made during an opera- tional assessment can lead to improved efficiencies and savings, those changes must actually be made, which is easier said than done. "You don't [make improvements] without a very well-or- chestrated communication program," Mr. Humphreys says. For the most part, transparency is key. To start, the entire leadership team at the hospital must be on the same page as to why drastic changes are necessary. "Make them fully understand what the position of the hospital is [and that] failure to address the issues would lead to circumstances no one desired that were not good for the community," he explains. He recommended holding full Q&A sessions and being extremely open with all the leaders. It is also important to be transparent with the medical staff. "Lay- ing out the full plan with the medical staff brought about support," Mr. Humphreys says. Data is important when it comes to conver- sations with the physicians, he says, as it "indicated we were be- ing very factual and truthful with every step in the picture." New strategic plan An operational assessment can put a hospital in good financial standing, but in order to be successful in the future under health- care reform, hospitals should also re-evaluate what they provide to their community and how to remain viable in the future. Ideally, a community hospital's new, rethought business plan should have strategies pertinent to healthcare reform and population health management, like linking with an accountable care organization or forming new partnerships with physicians, according to Mr. Weber. "That has to be a new element in the business plan. If [hospitals] don't have a section relative to that, they are missing something." When developing a new business plan, it is especially important to actively seek input from the hospital's board. Hospital leaders can capitalize on board members' knowledge of the community, as board members are community leaders as well. "They have perspective both on the mission of the organization and how [changes] would position the hospital relative to the needs of the community," Mr. Weber explains. Medical staff members also need to be consulted when develop- ing a new strategic plan, as physician relationships become es- pecially important in the era of population health management. "If hospitals don't have healthy, positive relationships with the medi- cal staff, working together from a strategic perspective…they'll be well behind the curve," says Mr. Weber. In fact, he recommends having physicians be voting members on the board. Now that ARMC is more financially stable from efficiencies found through the operational assessment, the hospital leadership is ex- amining how to move forward in the new healthcare landscape. "We are putting a lot of data together to determine which direc- tion to go," Mr. Humphreys says, with the ultimate goal being to continually make healthcare available to the community ARMC serves for decades to come. n "Make them fully understand what the position of the hospital is [and that] failure to address the issues would lead to circumstances no one desired that were not good for the community." — Ray Humphreys, CEO, Anderson Regional Medical Center Community Hospital Corporation owns, manages and consults with hospitals through three distinct organizations – CHC Hospitals, CHC Consulting and CHC Continue Care, which share a common purpose to guide, support and enhance the mission of community hospitals and healthcare providers.

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