Key Takeaways
- The most successful critical access hospitals (CAHs) nimbly adapt to ongoing challenges in the healthcare industry.
- Stakeholder investment in your facility’s strategic plan is essential to achieving patient care goals.
- Regular internal and external reviews are necessary to keep your critical access hospital in good financial and administrative health.
The unique operating conditions of critical access hospitals (CAHs) create many factors that can affect financial and administrative bottom lines.
From financial struggles to consolidation to management turnover, CAHs face threats from all sides. But if you know where to look within your operations for deficiencies and opportunities, your hospital can not only navigate these challenges, but thrive.
The State of Today’s Critical Access Hospitals
In recent years, all healthcare organizations have faced a unique set of challenges. More than 100 rural hospitals have shut their doors in the past decade, and dozens more have converted to rural emergency hospitals — cutting inpatient services to stay afloat.
CAHs in particular are facing unprecedented increases in costs. While labor and supply expenses have increased, many face pressures to reach target volumes to help cover increasing costs. Plus, reimbursements from private payors often don’t cover the higher cost of the services performed.
How to Create a Thriving Critical Access Hospital
In an industry that has historically been slow to adapt to change, your CAH management team needs the knowledge and skillsets for both proactive and responsive processes.
The following are five critical actions you can take to ensure your CAH is healthy and thriving:
Establish a clear vision and follow it through.
Thoroughly assess your CAH and visualize where you’d like it to go. It’s important to look to the future because past strategies won’t necessarily dictate future success. Strategically align forward-thinking business goals with current practices, even if you don't plan to address all tasks simultaneously.
Map out your business process and workflows. Sharpen communication efforts to make sure your staff knows what they are doing and why they are doing it.
Identify your biggest challenges.
What hurdles must your organization overcome? Are they driven by finances, the workforce, internal communication, or technology? Identify your challenges and plan to address each one with executive buy-in.
Take proactive measures to assess business risk, uncover waste within processes, and acknowledge where systems impede growth. By reviewing your business early and often, you’ll be able to improve quality, avoid costly mistakes, and enhance patient outcomes across the care continuum.
Leverage your current resources.
It’s important to leverage your existing technology, data, financial and human resources, and health equipment to your advantage. By optimizing existing resources, you can streamline tasks and processes, ultimately resulting in operational efficiency and improved patient care.
Whether implementing telehealth solutions, speeding up workflows, or flexing staff schedules and work locations, using your resources efficiently is imperative for a healthy bottom line.
- Operating a critical access hospital is complex. Here’s how Madison Regional Health System utilized its resources to operate smarter and more efficiently.
Become fiscally fit.
Conduct your own annual performance audits internally and have an outside firm do one at least every three years. Audits examining new programs, current organizational structure, costs, and revenues can assure the integrity of your existing processes. This constant vigilance can also identify areas that need to be streamlined and where compliance could be improved. Develop a vision of opportunities within your pricing strategies, chargemaster, forecasting work, task planning, and operations.
- Learn how Wallowa County Health Care District used technology to drive efficiency and boost agility in a changing environment.
Employ accountability at all levels.
Today’s healthcare environment requires flexibility and a proactive strategy. Your organization must be able to adapt to meet the goals of your strategic plan while adhering to a system of checks and balances. Executive leadership should be involved and invested at every step. This type of support will help increase accountability across the organization.
A Trusted Partner Can Help
CAHs are in a constant state of upheaval. New technology, financial regulations, and staffing issues keep these facilities searching for ways to operate more effectively. The strongest critical access hospitals will thrive with an attainable plan that includes growth opportunities and plan contingencies.
Strengthening your CAH’s bottom line is Eide Bailly’s specialty. Our team has first-hand experience working with healthcare organizations and is committed to seeing you thrive. Let us handle the business of your healthcare organization while you focus on delivering exceptional care to your patients.
