The New Healthcare Normal: Financial Uncertainty

Robert T. Yokl, President/CEO, SVAH Solutions

Are You Ready for This Challenge?

“While we have seen a stabilization in operating margins over the past several months, the trendline continues to show that hospitals will be in a tough spot financially for the foreseeable future,” said Erik Swanson of KaufmanHall. “With future COVID surges possible and challenging financial months ahead for hospitals, managing cash on hand will be critical to weathering the storm.” KaufmanHall considers this financial uncertainty as “the new normal” for healthcare organizations for the foreseeable future. Are you ready for this challenge?

No Money – No Mission: It’s Just That Simple

Despite these dire predictions, we frequently hear supply chain professionals talking about their succession, resilience, or sustainability projects, but none of these things are possible without your healthcare organization having a healthy bottom line. This can only happen with supply chain’s help to reduce 30% of their hospital, system, or IDN’s budget which has increased by 21.9% from 2021 to 2022. We know this is getting harder to do because your price savings are disappearing and your standardization is substantially completed. However, there are still millions to be saved in wasteful and inefficient consumption if you know how and where to look for them. That’s why new supply chain expense savings opportunities could actually be much easier and better than you think if you know where you stand.