Accounting changes raise lease vs. buy questions for hospitals

One long-overdue update from the Financial Accounting Standards Board (FASB) may have a profound impact on hospital balance sheets. Known as ASU 2016-02 (Topic 842), the new ruling means leases must be recognized differently on an organization’s balance sheet than before. The last time lease guidance underwent such a significant change was 1976. For hospital […]

Detailed Pharmacy Benchmarks Help Improve Patient Care and Profitability

Efficient operation of a hospital’s pharmacy department can contribute significantly to improved patient care and a hospital’s overall profitability. But, are you using the right benchmarks to judge your pharmacy’s performance? Pharmacy financial performance is often assessed year-over-year, which is a good place to start. Much can be learned by tracking and judging total existing […]

Controlling pharmacy costs: Where innovation meets good management

Sustainable cost control is the new number one concern for hospital CEOs, according to the latest Annual Health Care CEO Survey by the Advisory Board.   The Advisory Board surveyed 146 c-suite hospital executives between December 2017 and March 2018 and found that 62 percent were extremely interested in sustainable cost control. Since pharmacy plays […]

How to Find Considerable Cost-Savings for Your Hospital [Case Study]

Improving financial performance continues to be a top issue for many hospitals. Skyrocketing drug prices represents one of the biggest contributors to financial stresses faced by administrators. While reducing costs has long been a focus for health system CEOs, many are pursuing partnerships with outside firms to explore different cost-cutting measures. According to an article […]

7 Benefits to Outsourcing Your Hospital Pharmacy

Hospital leaders sometimes avoid the idea of outsourcing their pharmacy for fear they’ll lose control of this important segment of their operation or alienate valued pharmacy staff. Often, pharmacy is the second largest cost center in a hospital’s operations, so the concern is understandable. It is vital hospitals optimize their pharmacy operations amid ever-changing regulations, […]

2018 to bring financial changes to hospital pharmacies

The coming year is already shaping up to be a challenging one for hospitals and their pharmacies. With profits tightening as drug prices increase dramatically and shortages continue, it’s incumbent upon pharmacy managers to stay current on ways to contribute to their hospital’s bottom line. Consulting firm Deloitte predicts value-based contracts to physicians and hospitals […]

News Recap: Financial challenges roil healthcare industry

It’s an uncertain time for the healthcare industry. A host of factors, from regulatory changes to technological advances to Amazon, are shaking up the industry and some experts predict a wave of mergers and bankruptcies in 2018. The New York Times reported recently on the proposed merger of several health insurance companies that are partnering […]

News Recap: Hospitals File Suit to Stop CMS Changes to 340B Reimbursements

On November 1, the Centers for Medicare & Medicaid Services (CMS) announced its intent to reduce Medicare payments for hospital outpatient drugs under the 340B Drug Pricing Program. In response, the American Hospital Association, Association of American Medical Colleges and America’s Essential Hospitals filed a federal lawsuit to prevent the CMS from enacting the cuts. […]

News Recap: Operational Reform Needed to Achieve Cost-Cutting Goals

A recent survey by Kauffman, Hall & Associates revealed that few hospitals are making the operational changes necessary to achieve long-lasting cost reductions, despite the need for action. Featuring executives at 150 hospitals and health systems, participants included 30 percent from a health system with 10 or more hospitals, 26 percent from a stand-alone hospital, […]

Detailed Pharmacy Benchmarks Help Improve Patient Care, Profitability

Efficient operation of a hospital’s pharmacy department can contribute significantly to improved patient care and a hospital’s overall profitability. But, are you using the right benchmarks to judge your pharmacy’s performance? Pharmacy financial performance is often assessed year-over-year, which is a good place to start. Much can be learned by tracking and judging total existing […]