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|Articles - July/August 2014|
|Friday, July 11, 2014|
Page 3 of 6
Building a Nimble Hospital
If the ACA improves access to preventive care, fewer people will need to visit the ER or be admitted to the hospital. From a Hippocratic perspective, lower hospital utilization is a good thing, says Davidson. “If you’re keeping people healthier, you’re keeping them out of the hospital, so you’re ultimately having less cost on the system. That’s awesome.”
But from a business standpoint? Not so good. Hospitals have large fixed costs: property maintenance, food service, laundry. If revenues go down, it will be difficult to lower expenses to match. “Hospitals can change,” Davidson says, “but they’re like battleships: You turn the wheel, and it sometimes takes a mile or two to actually turn.”
ER visits are actually up, Davidson notes, due to pent-up demand from previously uninsured people. But hospitals are preparing for a future drop in patient volumes by developing more efficient, standardized processes and considering ways to “re-deploy” their staff. “If you reduce volume, it’s going to have an impact on how many employees you need,” Davidson says. “You’ve got to start thinking about how to retrain people to do other things.”
Recent data from the Oregon Employment Department shows although the state’s health care industry as a whole has been growing, hospital employment has stagnated since 2007 and is projected to grow by a relatively slow 14% between 2012 and 2022.
Financial pressures on hospitals will likely lead to consolidation and collaboration. That’s already happening outside Portland, where some institutions share back-office resources without fully merging. “People are realizing we’ve got to figure out how to deliver coordinated care; we’ve got to figure out how to be more cost effective,” says Jim Diegel, president and CEO of Central Oregon’s St. Charles Health System, which merged with Madras’s Mountain View Hospital last year and entered into a lease agreement with Prineville’s Pioneer Memorial Hospital in 2008. “Smaller organizations, or organizations that don’t have the talent, resources and capital internally, are saying, ‘We need to have a different relationship going forward.’”
For an example, look no further than Prineville. This spring St. Charles, whose revenues grew more than 10% to $556 million in 2013, broke ground on a new $30 million hospital slated to replace Pioneer Memorial in 2015. St. Charles Prineville will be two-thirds the size of its predecessor. It will have 20% fewer beds, and MRIs will be performed by a contractor in a trailer that will also serve St. Charles’s Madras hospital. The lean design of the new facility anticipates the industry’s shift away from acute care, explains Bob Gomes, CEO of St. Charles Bend and St. Charles Redmond: “We’re building our infrastructure looking to where health care is going, not where it is today.”
Monday, August 03, 2015
BY KIM MOORE | RESEARCH EDITOR
Pushing the extreme.
Monday, July 13, 2015
BY SAM BLACKMAN
Storyteller-in-chief with the CEO and co-founder of Elemental Technologies.
Wednesday, July 15, 2015
We asked readers how Obamacare has impacted their business.
Friday, July 10, 2015
BY AMY MILSHTEIN
When gossip crosses the line.
Thursday, August 27, 2015
BY LINDA BAKER
How do you put a baby on the cover of a business magazine without it looking too cutesy?
Wednesday, August 05, 2015
BY KEN MAES
A huge migration from Northern California has contributed to average 16% growth per year since 1990.
Wednesday, July 15, 2015
We asked readers to weigh in on the fossil fuel-green energy equation.
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Yesterday, a divided National Labor Relations Board dropped another hammer on the employer community. In a long-awaited and much debated move, the Board jettisoned the decades old standard for determining when two independent businesses should be considered joint employers of an individual worker for collective bargaining purposes.
Transforming the culture of Oregon’s educational leadership.
The Board dismissed a petition related to efforts to unionize the Northwestern University football team.
Oregon Sick Leave is here, and changes to the federal white-collar worker regulations are on the way. This workshop will prepare you for both. We invite you to participate in an interactive discussion on how to start planning now for the future impact on your operations and finances.
Presented by OEN + CENTRL + YESpdx.
This Roundtable will cover numerous issues under the employer "shared responsibility" rules of the Affordable Care Act, including how to track the "full-time" status of variable-hour employees, temporary or seasonal employees, and employees who experience a change in status or a break in service. Additionally, we will provide a brief overview of Code sections 6055 and 6056, which require most mid-sized and large employers to submit their first information reports to the IRS in early 2016 regarding the health insurance coverage being offered to employees. We invite you to participate in an interactive discussion on how to prepare for the future impact of the shared responsibility rules on your operations and finances.