It’s All About Cash Flow!
“An increasing number of healthcare providers are operating in the red. In fact, according to the American Hospital Association, one-third of America's 5,000-plus hospitals are actually losing money, while another one-third is barely breaking even.” (1)
This is the new reality of American Healthcare and it needs to be addressed by all healthcare professionals at all levels and in all specialties.
Over my consulting career I have worked with several healthcare institutions and have consistently found that most of the healthcare professionals would like to ignore this reality since they believe that they need to focus on applying their healthcare training and skills to the practice of medicine and not worrying about running a business.
I agree that they should focus on their healthcare skills but it must also be recognized that if they can’t pay their bills and investors they will be forced to go bankrupt, sell or liquidate. Many small practices are closing and have become “hospitalists” in large institutions or have merged with others.
The message is loud and clear!
If healthcare practitioners and institutions want to survive and prosper ALL practitioners must recognize that they must learn to use “cash flow analyses” and think strategically about how all of the major stakeholders impact their ability to generate positive cash flows.
Further they must recognize that if their cash flows are negative, the game is over and they will go out of business.
To help healthcare leaders to apply a proven and successful strategic thinking processes, I plan to lead a series of discussions entitled “It’s All About Cash Flow”.
CEO Rothschild Strategies Unlimited LLC