The Chartis Forum

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Beating the Financial Squeeze: How to Drive Performance Transformation in Your Health System

For decades, health systems have recognized the strategic imperative of managing costs; most have concentrated on traditional performance improvement initiatives, including revenue cycle enhancements, group purchasing organization (GPO)-facilitated unit price discounts on supply costs, and reduced labor costs through operational benchmarking and other performance management tools. While additional savings can often be achieved through renewed efforts in these areas, accelerating pressures on expense management and capital requirements are threatening to outpace most organizations’ ability to manage performance. A fundamentally different approach to margin improvement is required. Providers seeking to improve margins must directly address clinical care delivery and the associated clinical processes, within an operating environment organized to meet the changing needs of healthcare consumers.


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