Hospital CEO offers cost-saving tips for ailing hospitals

Nationwide news about hospital closings and layoffs paints a bleak picture for some parts of the healthcare industry. 

Just yesterday, Catholic Medical Center in Manchester announced it will lay off 101 employees, including senior management positions. Wentworth-Douglass Hospital in Dover is laying off 45 workers, and Elliot Health System in Manchester is cutting 182 people, the Boston Globe reports. And that's just the tip of the iceberg. 

The problem? New Hampshire has imposed a $12 million Medicaid enhancement tax payment that will cost hospitals $250 million over the next two years, reports the Union Leader

As these and other hospitals nationwide suffer from similar expenses and payment cuts, one CEO is sharing his prescription for bottom-line balancing. Alameda County (Calif.) Medical Center and Highland Hospital CEO Wright L. Lassiter III uses the following approaches for turning around hospital finances, Business Management Daily reports:

  • Assign department heads and managers to launch grassroots initiatives to seek funds
  • Create cross-functional teams to hunt down hidden cost-savings that others might miss
  • Remove toxic providers from the organization
  • Eliminate bottlenecks for revenue-generating service lines
  • Vow to make layoffs a last resort.

For more:
- read the Boston Globe article
- read the Union Leader article
- check out the Business Management Daily column

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