Amid rapid healthcare consolidation, it’s essential that nonprofit providers examine how well they’re prepared to thrive today and in the longer term. HealthLeaders and Bank of America recently held a roundtable where nonprofit healthcare leaders discussed expense management, capital investment strategies and other key considerations.
Margin pressure is a significant obstacle facing nonprofit providers. One panelist notes the need to simultaneously focus on both growing revenue and controlling expenses to stay healthy. Another panelist cites revenue pressure — from both governmental and commercial payers — as a major challenge. At his organization, expenses grew faster than revenue during each of the past two years.
Trimming expenses should be a major focus for every nonprofit provider, and our roundtable participants are employing a wide range of solutions to achieve this critical goal. All are focused on expense “nuts and bolts,” such as staffing efficiency, FTE tracking and overtime control. Several panelists cite novel cost-control strategies, such as building a platform to capture grassroots savings ideas from nurses and staff, and collaboration among the supply chain and physicians to identify opportunities.
SVP, Financial Operations
West Reading, PA
SVP, Financial Planning
New York, NY
Christiana Care Health
Bank of America
New York, NY
- Nonprofit healthcare providers face unique pressures amid rapid industry consolidation
- Finance leaders must take a fresh look at their strategies for growing revenue, trimming costs and investing for the future
- BofA and HealthLeaders recently held a panel discussion where participants shared their priorities