Track: Healthcare Systems

Abstract

Healthcare organizations in the United States had significant financial difficulties following the COVID-19 outbreak. These were made worse by the healthcare industry's fast-evolving workforce, which was influenced by years of physical and psychological stress on personnel and led to retirements, resignations, and relocations. The cost of operating for healthcare organizations increased as a result of the need for more adaptable working conditions, greater wages, and better benefits. In the beginning, the government's pandemic funding was frequently used to subsidize expensive temporary or contract labor as a response to the healthcare personnel shortage. Healthcare organizations struggled with increasing labor costs and declining reimbursement rates when these funds ran out and inflationary pressures remained. This article describes a complete 6-week program held from July 6 to August 11, 2023, within a community-based healthcare system, to educate and empower clinical and operational teams in problem-solving and financial responsibility. Five guiding concepts (Pillars) were used by the Sustainable Management Above Reimbursement Transformation (SMART) initiative to direct cost-cutting activities: Practice Efficiency, Access Improvement, Working Differently, Expense Reductions, and Revenue Generation. The goal of an advisory panel supported by sub-teams was to find areas for improvement without sacrificing patient care while evaluating cost-saving targets and suggested measures for various service areas. With an average predicted cost savings of 13% across service lines, the outcomes exceeded expectations. This successful initiative represents a significant stride toward financial sustainability in healthcare institutions, demonstrating the resilience and adaptability of healthcare providers during challenging economic times and offering valuable lessons for the future.