Hospital Finance Revealed by a Hospital CFO

Steve Febus, the CFO of Pullman Regional Hospital Explains How Money Works at a Hospital:
1) Their Hospital Had $117M in Annual Billed Charges, $1M in Profit, 66% of Revenue Came from Outpatient Services, 23% from Inpatient Services and 11% from Physician Services.
2) Healthy Patients Are Bad for the Hospital's Business
3) It Bought a Da Vinci Robot for Surgery to Attract a Urologist to their Hospital
4) They Had to Lower Their MRI Prices Because Patients with High Deductible Health Plans Were Shopping for Less Expensive MRIs at a Competing Hospital
5) There is a Duplication of Services at a Hospital only 9 Miles Away
6) Their Hospital Pays for Staff for Maximum Occupancy Even When Their Occupancy is Very Low
7) Hospital Prices are Meaningless
Sources HERE: • Healthcare Finance 101...
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[@kgoswami14]

As a current medical student looking to get into the health care admin this is very insightful, thank you very much!

[@ahealthcarez]

Thank you for watching.

[@TheMabes69]

I agree...waste in healthcare needs to be eliminated: start with the over-bloated hospital administrators and their high salaries and bonuses....then go after CEOs/CFOs/COOs making millions at "not for profit" hospitals. It'd be a great start. You can take the savings and use it to increase staff salaries...especially CNAs, RNs, and Respiratory Techs...you know, the people that actually take care of the patients. You guys keep forgetting that without us, you have no "business".

[@ahealthcarez]

Great point. Thank you for watching.

[@ldkellandshaw]

While that is of course true, you also seem to forget that none of the people you mention know how to actually get a payment for their services. Don’t demean the skills of ancillary professionals just because they aren’t actually giving the injection, or taking the XRay. Fixed costs in hospitals runs far higher than clinical staff only.

[@jh2519]

I agree that those people need raises, my wife is an RN, but you have to remember, to keep the hospital open, means it must be profitable, you need all of the managers as well. In short, you need each other.

[@Coconinga]

Hmm, I think your solution might be a tad too simple.

[@davidfaxon3336]

@@ldkellandshaw those C level employees don't know how to either. That's why they hire people that do know how to

[@charlesotoghile6547]

Wonderful summary. Thank you

[@ahealthcarez]

Thank you for watching!!

[@anthonyelhage2589]

Thank you for your diligent work, your delivery and your passion on all your subjects. You have been a tremendous help to me and to others as well, I am sure.

[@ahealthcarez]

Thank you for watching and for your kind words.

[@ajayreddy8732]

What important if you don’t support the system in these rural places, then there is no access when it is needed. That’s why they are called critical access hospitals

[@lamarnash2439]

Looking to be a health economist, your video is truly insightful. Thank you.

[@ahealthcarez]

Super! Thank you for watching.

[@OnlineSlotEnthusiasts]

Great video! Good info here. I work for a health insurance company and really enjoyed the video.

[@ahealthcarez]

Thank you for watching and for your comment.

[@zhadaray]

Great video... ive watched so many. However, I'd had to say that without safe staffing (above the skeleton crew), there will be a drop in quality of care, a decrease in work satisfaction, an increase in people looking elsewhere to work. As demonstrated in the past two years, people leave hospitals when overstressed. It is crucial not to add too many responsibilities and too much work on people carrying out tasks on the frontline. Example, keep the janitor. They are crucial to cleaning the rooms and sanitizing while the healthcare staff is running around with their heads cut off without bathroom breaks. So, I'd have to agree with the CFO. Providing income for their staffing is long term. They're building loyalty. Their staff can rely on the income to buy food and pay for housing. On the other hand, hospitals that operate below the skeleton crew have such a high turnover rate. They offer so many sign-on bonuses rather than fixing the problem. Which leads me to my question, would you happen to know why there are more incentives for new hires than retention?

[@ahealthcarez]

Thank you for watching and sharing your perspective. Regarding bonuses, the hospitals know that it is more difficult to get a new person to join the the team than to keep an existing employee on the team. Inertia is a powerful force.

[@zhadaray]

@@ahealthcarez that is true. Thanks for the reply!

[@zhinningenge1754]

Excellent

[@ahealthcarez]

Thank you for watching and for your comment.

[@Silvertestrun]

Ty

[@ahealthcarez]

Thank you for watching!!

[@drartithangudu]

Can you share Steve Genus’ video. I don’t see it in the show notes.

[@ahealthcarez]

kzbin.info/www/bejne/hF62pqCGmcdlhqs

[@robertchanningritchie5647]

What is the lost revenue and cost of an empty hospital bed?

[@ahealthcarez]

Most hospitals don’t do cost accounting, so by diagnosis or treatment, they Don’t Know.

[@duancoviero9759]

Exactly why you shouldn't have a for profit system 🧘🏾‍♂️

[@ahealthcarez]

Thank you for sharing your thoughts.

[@ShraddaNiche]

The only thing about RN's is they are in a union and we can only call them off a certail amount of days. But yes call them off. I concur

[@ahealthcarez]

Thank you for watching and sharing your experience.

[@Josh-rk5st]

Kudos for calling out hospitals who try to go skeleton crew to save money. It is short sighted and you just end up paying more in the long run. You should always staff for average-high volumes and never sent staff home because "we are slow". Inevitably, you will get a wave of patients and not be able to provide the level of care needed to keep the hospital moving patients through it. If the ER has a large wave of patients, it means surgery, outpatients, and in-house patients all have to wait and costs you more money in the big picture. Plus, sending people home is the best way to tank employee morale and get less work out of your people.

[@ahealthcarez]

Thank you for watching and for your comment.

[@scasinger123]

I love your videos and don't usually comment, but talking about nurses like they can just be cancelled when patient census is low is super rude. These are people with families. Telling them they can't work and earn because the hospital census is down is unconscionable when a hospital is spending so much money on stupid stuff that they don't need. This is a critical access hospital. Those nurses need to be available when they are needed, not jerked around because the hospital can't keep the census up. I seriously hope you reconsider this comment.

[@ahealthcarez]

Thank you for sharing your thoughts.

[@eagle13rodgerthatradar]

Wow you must be a photographer physician assistant or a barber

[@ahealthcarez]

Both. 😉 Thank you for watching.

[@user-pf2gm7mo9y]

I agree that a source of massive waste In hospitals are useless personnel. But why do they always target nurses and lower paid physicians in this issue? Why is it always us? I worked in hospitals where they have a “chief nursing officer of medication administration”, an absolutely useless title who got paid over 300,000 dlls per year where most primary care physicians did not get paid even the national average. And then, they were surprised by the fact that they could not recruit internists to staff their clinics.

[@ahealthcarez]

Good question. Maybe because of relationships formed among administrators. Hard to layoff someone you know… easier to layoff someone you don’t.

[@baine3388]

So what you're saying is. For profit healthcare bad?

[@ahealthcarez]

The way it functions today in America… Yes. Thank you for watching.

[@johnkodhek1]

@@ahealthcarez Could you help by telling me if there is anywhere that does for-profit healthcare in a way that can be said to be "good"? I'd really be interested to know before making career decisions in healthcare.