HospitalNet

November 3, 2011 Becker's Hospital Review published an article written by Luke Peterson and Kate Lovrien, Kurt Salmon.

The article discusses what independent community hospitals should focus on to stay strong through the future independently.  Over the past two years there has been an increase of independent hospitals joining systems through full asset mergers.  If an organization decides to stay independent, its future depends on eight factors.

1. Geography

2. Physician Alignment

3. Payor Relationships

4. Cost & Revenue Structure. Those hospitals that have dramatically reduced overhead and, through partnerships, have leveraged economies of scale outside their organizations, have strengthened their financial position and thereby their ability to remain independent. Moreover, systems will not offer as much by way of cost savings to these organizations, reducing the value of joining a system.

5. High-Quality Inputs, processes & Outcomes

6. Capital Asset Base. Organizations that have not advanced their facilities and technologies, or those that have a poor balance sheet position, are likely to face challenges if they remain independent. The future environment will demand financial flexibility.

7. Community Support

8. Managing a Continuum

To read the full article please follow the link below:

http://www.beckershospitalreview.com/hospital-management-adminstration/8-success-factors-for-independent-community-hospitals.html