Healthcare is one of the largest employers in the U.S., especially in rural towns. Healthcare, even in times of economic upheaval, has been a job producer, employing medical staff, administrative personnel and facilities services providers.[i] As an employer and as a caretaker for its residents, these hospitals stand as an anchor for the community.
Independent hospitals are committed to long-term care of the patients in their communities – and TPC is committed to helping those hospitals realize system value through standardization, utilization and pricing strategies that enhance their operational, financial and clinical performance. By taking a close look at all the non-labor spend of a hospital and leveraging the combined volume of all Members, TPC is able to achieve significant cost savings above and beyond what many hospitals are able to achieve on their own.
Healthcare delivery in the United States is experiencing a period of extreme flux and uncertainty that is combining to escalate costs. It is compounded by a healthcare supply chain which is vast, complex and plagued with inefficiencies. Supply costs can account for 25-30% of a hospital’s operating budget. Supplies relate directly to the patient experience, making it difficult to always settle for the least expensive option. Consequently, hospitals are continually faced with the challenge of decreasing supply chain costs without compromising patient care.
If you feel like there are fewer community hospitals today than there used to be, it’s not just your imagination. Statistics show that in 1975 there were 7,156 hospitals in the U.S.; today that number has fallen to under 5,600 facilities. While the American Hospital Association classifies 4,840 of these as community hospitals, many may still be affiliated with a larger network or system. Very few community hospitals are true standalone, independent facilities. Which begs the question, in an increasingly volatile healthcare marketplace, is further decline in the number of hospitals imminent, and are those standalone independents at risk of becoming obsolete? Let’s take a look.
