A successful annual operating budget process balances resource utilization with value. Learn from the trials and successes the OSF finance team experienced in their evolving budgeting process, brought about through their transformation to a centralized, hub-and-spoke model.
Service Line Level Forecasting – Charting a Course for Optimal Success in a Value Based World
More than ever before, healthcare finance leaders are under increasing pressures to support their organizations by managing uncertainty, volatility, and risk. As the industry continues to shift with increasing momentum towards value based reimbursement models, the traditional methods of environmental assessment and trend analysis can point in the wrong direction when they fall short of accurately predicting the ways in which the business of healthcare is ever changing.
Predicting (extrapolating historical relationships to define a single future) is meaningless when different dynamics start determining future outcomes – today’s situation. Fortunately, forecasting (estimating probabilities of more than one possible future) can identify options when scientific revolution, technological advances, economic transformation and political dysfunction are creating new opportunities for health providers. Service lines are the most comprehensive way to understand operating results, and therefore they should form the basis for strategic planning, capital planning, annual budgeting, forecasting, and performance analyses. It is only through employing a serviceline view that all activities within a hospital or health system be optimally aligned and performance outcomes better understood.
1. Overview of the healthcare finance environment in the post reform era
2. Aligning multi-year plans, budgets, and rolling forecasts
3. The value magnification of incorporating service line analytics in refining projections
4. The importance of cross-departmental initiative-based modeling
5. Keeping management and executive leaders engaged – reporting and feedback loops