In today’s healthcare climate it’s becoming more challenging for hospitals to remain financially viable. This is especially true for stand-alone, independent hospitals. According to Moody’s researchers, median operating cash-flow margins of 160 surveyed hospital systems dropped from 9.5% in 2016 to 8.1% in 2017. What’s causing the decrease in profitability? Higher labor and supply costs, higher drug costs, and lower reimbursement from commercial and government payers. If you’re a small hospital with a tight budget, then you’ve probably entertained the idea of consolidating with a larger system with hopes of controlling costs and growing margins. But the data suggests that both financially and in terms of patient care, consolidation might not be the ideal solution.
TPC’s 2018 Value Analysis Team Summit – also known as the Fall Classic – by all standards was a huge success. At this annual event, TPC committee members have the opportunity to meet face-to-face with peers, discuss the TPC purpose and vision of working together as one, and collaborate on new initiatives and goals for the upcoming year.
TPC is a leading coalition that has built a distinct regional model based on collective participation and high commitment that has proven successful. TPC has demonstrated steady savings for over 10 years, while also increasing overall value for Members. The financial benefit is typically the leading story, but TPC is so much more.
The opportunity to talk with fellow Members, explore the TPC purpose and vision in depth, and evaluate new initiatives were the highlights of the recent Fall Classic Value Analysis Team (VAT) training event for TPC colleagues. By making time for discussion about strategy, Members came away energized and ready to tackle the 2018 work plan.