Healthcare delivery methods and payment systems are changing rapidly. Maryland has adopted a Canadian-style payment method that caps the revenue of every hospital in the state. Alternative provider models; convenient, quick clinics in easy-to-reach retail locations; smartphone-based doctor visits; and Internet consults between ED physicians and nursing homes are changing the face of healthcare. Amazon, Berkshire Hathaway and JPMorgan Chase have joined forces to reduce healthcare costs.
Because of this, carefully managing the financial health of the organization is more important than ever. Resources are scarce and stretched to the breaking point. Doing more with less is routine. The need for sound business and financial management tools—survival skills—is paramount for all managers. These include planning and budgeting, financial analysis, and maximizing resources, all of which are essential if managers are to achieve the institution’s mission and financial results.
This program will review the importance of budgeting and show participants how to read and better understand performance reports and dashboards. It will introduce a proven method of determining the real underlying causes of budget deviations, explore an objective way to examine departmental performance that highlights both high-performing departments and those in need of some assistance, and examine three ways to look for improvement in routine work processes.
At the end of the program, participants will be able to:
•Explain the importance of budgeting as a key element in management
•Read and understand performance reports and use dashboards to chart performance
•Determine the underlying causes of performance deviations using volume adjusted variance analysis,
•Use bilateral performance mapping to identify high-and low-performing departments, and
•Examine work processes using Process Flow Analysis, Brown Paper Analysis, and Value Stream Mapping
William J. Ward, MBA, Associate Professor of Health Finance and Management, Johns Hopkins Bloomberg School of Public Health