Page 47 - Cannabis News Florida May 2022

Four Ways to Reduce the Impact
When It Comes to of High Administrative Expenses

Patient Care,

3. Evaluate your M&A
Providers nationwide
Perform a Culture are greatly impacted by opportunities.
the nursing shortage. For smaller independent
Check-Up Administrative expens- providers, like standalone hospi-
es for staffing — such as tals in rural areas, high adminis-
trative costs can be debilitating
insurance,
benefits,
Funny, we see it everywhere. So many differ- retention bonuses, hir- and threaten the organization’s
ent companies stuck somewhere between BY JAY JUFFRE ing bonuses and head- future. The best solution to this
COVID and post-COVID protocols. Don’t hunter fees — are soar- problem may be to join a larger
know what I am referring to? Go to any hotel, ing. At the same time, system that can afford to take on
restaurant, bank or grocery store. You can see these businesses trying to many nurses are leaving the administrative burden. For
find the balance between what they were doing at the height of the pan- the profession as providers that are seeking to
demic and what to do now. The interactions are sometimes awkward as burnout reaches new BY STEVEN SHILL acquire organizations this year,
both the customer and the staff try to navigate the appropriate social heights. As a result, it’s important that they try to
norms. Slowly but surely, things will get back to normal. 81% of healthcare keep the overall number of ven-
Here is a gut check for everyone. How did all these COVID-19 proce- CFOs – based on the 2022 BDO dors they work with low so they can
dures for your team and clients negatively impact your culture. It’s hard Healthcare CFO Outlook Survey – say the access group purchasing discounts and
for many of us to think back two plus years, but how did it feel to be part talent shortage poses a risk to their busi- possibly negotiate better acquisition
of your organization back then? What was it like to be part of your team? ness in 2022. With reimbursement rates terms.
What was it like for patients and their families? remaining static, providers need a way to 4. Review your insurance coverage
For all the right reasons, many in the health care world had to sacrifice manage the increasing administrative strategy.
certain aspects of the culture they had built in the name of safety, infec- expenses. While it often feels daunting to
tion prevention, patient load, staffing shortages and a host of other very Fortunately, providers have options for providers, now is the time to review insur-
good reasons. The question is, how do you quickly and responsibly get reducing the financial burden of these ance plans. One possible consideration is
back to pre-COVID levels of patient care, staff engagement and core val- increasing costs, including: self-insurance. By offering employees self-
ues. We must also consider that many of the folks on your current team, 1. Switch to defined-contribution insurance plans, providers can save money
joined during COVID and have no idea what the organization’s culture plans. on premiums. To determine whether this
may really be like because they have never actually seen it. Get a small In the past, many healthcare providers is the right move, providers need to use an
team who knows what your pre-COVID culture was actually like. Then offered a defined-benefit plan, which is a actuarial calculation of covered lives to
develop a game plan to reengage the team and the culture. The companies type of pension plan that offers a pension determine what their collective costs will
that do this quickly will win as we emerge from the pandemic. payment or lump sum upon an employee’s be. From there, providers can determine if
retirement. By contrast, in a defined-con- they have the funding to offer self-insur-
Jay Juffre is Executive Vice President, ImageFIRST. For more information on tribution plan, the employee and the ance. Self-insurance isn’t the right move
ImageFIRST, call 1-800-932-7472 or visit www.imagefirst.com. employer both regularly contribute to the for every organization, but it’s worth

employee’s retirement fund over time. exploring, especially for providers whose
Many providers have already switched to a insurance premiums are a significant
defined-contribution plan, but those who financial burden right now.
have not should consider doing so now, as Nearly all providers are struggling under
these plans can rein in the upfront admin- the weight of high administrative costs.
istrative costs associated with employ- Finding creative solutions to mitigate their
ment. impact on the financial viability of your
2. Re-evaluate discretionary invest- organization will set you apart from the
ments. competition and allow you to maintain
Recently, we’ve seen significant invest- continuity of care.
ment in innovation and research and
development, particularly in larger health Steven Shill, Partner and National Leader,
systems. While these investments are cru- The BDO Center for Healthcare Excellence
cial to the development of more durable & Innovation, can be reached at
medical equipment, new pharmaceuticals sshill@bdo.com or (714) 668-7370.
and more, it may be necessary to tem-
porarily reduce such investments to make Contact:
up for increased administrative costs. Alfredo Cepero, Managing Partner
Once hiring and staffing returns to a more 305-420-8006 / acepero@bdo.com
stable state, these investments can be
increased once again. Angelo Pirozzi, Partner
646-520-2870 / apirozzi@bdo.com

6 May 2022 southfloridahospitalnews.com South Florida Hospital News