Tie cost goals to an integrated strategic financial Plan Cost goal are set in

Tie cost goals to an integrated strategic financial

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Tie cost goals to an integrated strategic-financial Plan-Cost goal are set in the context of the organization’s overall financial picture over a five-year horizon. A cost reduction
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INFORMATION TECHNOLOGY 23 goal of at least 8% in the first year and 25%–30% over five years is appropriate and viable for most organizations (Adler-Milstein et al., 2015, p. 2179). Combine top-down, and bottom-up planning- A balance of top-down and bottom-up planning ensures leadership direction and effective implementation. Staff should be empowered with the tools to own the process through cost data and analytics training. Identify cost reduction opportunities and appropriate targets for those selected for Pursuit -Set goals at multiple levels (organization, VP executive, each department), and track and trend progress to identify if efforts are directionally correct and when to implement changes. Ensure robust data and analytics and trustworthy cost accounting tools- A reliable cost accounting tool offers insightful analytics, is integrated with the organization’s strategic-financial planning software, and delivers the right information in an actionable format. Rethink the Organization’s Portfolio of Businesses, and Services -Forward-thinking healthcare organizations are evaluating all aspects of their business in light of requirements for future success. Use a structured approach to evaluate each business unit, service line, and facility- The The method should take into account the mission, the complexity of operations, competitive market position, financial results, and compliance with requirements of the new business model. Leaders should review the demand for and performance of every facility and service. Inefficient services affect the health, technical, financial, and capital resources of an organization and make it less competitive as a service provider. The risk of poor patient outcomes is high in low-volume services and hospitals.
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INFORMATION TECHNOLOGY 24 Answer the critical questions for defining the organization’s new Position- What programs are we expected to deliver everywhere and to what extent? Are multi-location facilities available that can or must be focused at fewer locations to achieve the same results and reduce cost? Are there wider options such as primary care and lower-cost programs that should be covered? What is the best distribution network across the hospital, outpatient, and virtual facilities if we could continue fresh? Take action to reconfigure the delivery network based on these Insights -Strong, realistic actions by hospital and health system executives would need to be taken and implemented. Health care organizations must be prepared to consolidate facilities nearby to different locations. They should also be ready to divest service lines that do not have value for the organization.
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  • Fall '16
  • Health care provider

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