Hospital Profits 101- How to Cut your IT budget by 30-50%

Hospital administrators are caught in a catch 22.  Budgets are decreasing for Health Information Technology, yet demands are increasing.   The government, third party payers and patients are demanding I.T. systems and Health Technology with increasing complexity and diversity to meet the needs of meaningful use, quality and lower readmissions.  At the same time, reimbursement cuts, possible decreased admissions and the added cost of readmissions will constrain budgets.  These factors, explained in recent surveys(1), show that everyone is asked to do more with less.   Luckily, there are ways to do this.

Health care, particularly in Information Technology, is not an efficient marketplace.  The space is dominated by a couple of big companies.  Consultants usually have strong financial relationshipswith these big companies.  This perpetuates an environment without price transparency, complicated pricing and contracts, and unnecessarily high fees.  There is an easy way to break the cycle!  This approach has saved small and large systems 30-50% of their operating budgets within one year to realize savings of millions of dollars.

Medical Technology Consultants (MTC) are independent experts at Focused Asset Management. Over the past 4 years, their system was used to successfully evaluate over 100 hospitals, every time showing that the hospitals were not realizing profits because of inefficient contracts and operations.  Their system uses specialized analytics to rapidly evaluate equipment needs, update cycles and contracts.

Here are the key points:

  1. A typical 300 bed hospital will realize about $2 million in savings
  2. A system in Texas was recently able to make an extra $5400 profit per hospital bed using this system.

This kind of rapid evaluation and assessment process is not easy.  The professionals at MTC worked for a growing major hospital corporation that buys underperforming hospitals.   When they discovered significant potential profits, the corporation purchased the hospital and immediately reduced costs.  Of course, a hospital purchase is no longer the goal.  It is to provide incredible savings to CEO’s and CFO’s who use the service.

The process is relatively simple.  They simply need basic information like an equipment list.  Using exclusive analytics software, they can evaluate the true cost of your technology, services and maintenance.

Focused Asset Management by MTC can provide the solution you need to:

1.      Decrease Capital Equipment costs- a systematic approach to all IT spending is not only possible but can be done efficiently.
a.       Reevaluate Biomedical Services Agreements
b.       Are you paying more than the industry standard fees for service?
c.       Are you getting appropriate service for your fees?
d.       Manage equipment transfers within IDN’s
e.       Reevaluate your in house IT department- many services can be outsourced at lower cost through CQI initiatives and monitoring.

2.     Negotiate better prices- Your “discounts” may actually be costing you!
a.       Find better prices for new equipment
b.       Find ways to extend the life of your existing technology
c.       Invest in used or Demo equipment to save money

3.     Get More out of your equipment
a.       We can manage and directly install HL7 between Clinical equipment, Patient Monitoring equipment  and patient data storage system.  Integrate data and reduce Length of Stay.
b.       Philips/ HP monitoring is a specialty

4.     PACS System installation and maintenance

5.     Compliance- Violations will cost you more than money—Your reputation is on the line.
a.       Are you within State and Federal guidelines for your services?
b.      Are you ready for a visit from your state, JCAHO or Medicare?
c.       Are you ready to show and prove the value of your services in a pay-for-performance setting?
d.       Are your IT systems ready to reduce readmissions and increase the long-term value of your patient care?
(1) http://www.healthcareitnews.com/news/budgets-dip-health-it-spending-grows

 

Medical Technology Consultants
A division of AnesthesiaStat Consulting)
1-800-686-1805 Ext. 1
410-385-3336