Strategic Financial Planning subscribers can access individual articles and web exclusives below.

Spring 2012 Enewsletter

Cost Reporting

Using Process-Based Costing to Identify and Evaluate Strategic Options
By Lauren Phillips

Vernon Memorial Healthcare's goal was straightforward: to better understand its service lines and identify opportunities for improvement. To accomplish these goals, the health system began using a process-based cost (PBC) software model for its primary service lines.

Capital Finance 

Mission Possible: Finding Capital for Stand-Alone Hospitals
By Anthony J. Taddey and Jason Beakas

Numerous capital options-both government and commercial-are available to stand-alone hospitals looking to fund IT, construction, and other projects.

When Less Is More: A Look at Partial Refundings
By Pierre Bogacz

Depending on the situation, a partial refunding may produce greater savings by accessing a different portion of the yield curve.  

Spring 2012 Issue

Service Line Analysis 

4 Keys to Strategic Service Line Analysis
By Lauren Phillips

Industry experts and hospital finance leaders highlight four key steps to a successful service line strategy: think product lines, identify growth strategies, ensure responsible divestment, and build data analytics to improve performance. 

Web Exclusive: 
Core Service Line Evaluation Steps for Financial Executives

Case Study

Service Line Improvement: A Common Cause, a Common Scoreboard

By holding service line leaders accountable for performance metrics, Memorial Hermann Memorial City saw volumes and contribution margins improve. In FY11, the hospital's seven service lines met or exceeded budgeted volume and contribution margin targets, collectively coming in at 116 percent of overall contribution margin requirements.

Web Exclusive Tools:  

Financing Insights

New Forms of Bank Financing Are on the Rise
By Peter W. Bruton

Credit-worthy healthcare borrowers are branching out beyond standby capital sources-and taking advantage of two low-cost arrangements: direct bank loans and floating rate notes. 

Facility Planning 

Efficient Space Utilization Planning Helps the Bottom Line
By George Karageorgiou

Three case studies demonstrate how careful evaluation of space utilization can reduce expenses, avoid the need for additional facilities, and increase revenue.

The Long View

Rx for Physician Shortage: Strategic Financial Prevention
A commentary by Jeffrey C. Bauer

Ensuring an adequate supply of physicians and other healthcare professionals in the future requires targeted strategic investments.

Pricing Strategies

Price Shopping Just Got More Competitive
By Nicholas Newsad

Now that managed care rates are becoming publicly available, healthcare finance leaders need to evaluate their pricing and payer rate negotiation strategies.

Capital Challenge 

Hitting a Home Run with a Financing Game Plan
By James J. Pizzo

Electra Memorial Hospital received a 25-year loan with a fixed-interest rate below 5 percent-and no financial covenants to meet.

Data Metrics & Analysis

Per Encounter Costs: The First Step to True Cost Containment
By William O. Cleverley and James O. Cleverley

The Cleverleys break down the steps involved in measuring encounter costs-and share an example that points to the need for more specificity and clarity in evaluating these costs.