Like most healthcare providers, Sandusky, OH-based Firelands Regional Medical Center, a 400-bed institution with $515 million in gross annual revenue, is working hard to prepare for the transition from fee-for-service to value-based reimbursements.
CFO Daniel Moncher knows that cost containment will be critical to Firelands' ability to survive in the tighter reimbursement environment that is rapidly heading its way. He shares some tips for making the migration smoother.
1. Cutting Costs
Although new payment models won't affect revenue for the most part this year, Moncher says he knows changes will be here soon, and organizations like his must be ready.
"We don't anticipate any significant impact in 2014 based on our market and contracts and the size of our organization, but we do fully think we will be impacted in subsequent years," Moncher says.
As a result, monitoring expenses and setting goals for lowering costs are high on Firelands' priority list.
"We've put metrics into place for the entire organization … to see how we are doing and to communicate that with our employees on a monthly basis," Moncher says. "The key to success is going to be cost containment. We've always been a very cost conscious organization, and we will be even more so. Not obsessive, but it is definitely something that will be top of mind, and we'll be scrutinizing everything, such as staffing requests, business opportunities, supply costs, and overhead costs. We'll be trying to lower our costs as effectively and systematically as we can."