American Hospitals: Bleeding Money Profusely?

Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “ American Hospitals: Bleeding Money Profusely?”

American Hospitals are commanded no different than some of the major airlines, a revamp of the overall system is not only integral but a Must! A total mindset is conclusive for the executives of these hospitals to survive this ride as the rules of the engagements have changed and the Health Care Reform will take place one way or the other. At least we hope! There is no doubt whether we need a healthcare reform, we absolutely do! The question is, how is it structured? Are the Americans benefiting regardless of their race, creed, age, sex? Where do these hospitals stand?

The Reform will impact the bottom line of these hospitals in a brimming way. Hospitals have been losing money for many years, this is no new scoop. However, we are facing more critical times where the government is about to pull the plug on some of these hospitals through various channels. Hospitals are mismanaging their funds and there is a very high expense ratio and upon auditing some of these hospitals we have found savings of over 22% in some cases that goes directly to their bottom line. This figure can be looked at as 22% of increased revenue.

A number of hospitals are run by executives who are in their golden years, have old ways of doing things, and are very reluctant to adopt to changes that are for the betterment of not only their hospitals but the community in general. I was astounded when I saw how some of these hospitals are spending money. Money is being bled in almost every department in these hospitals and there is no sense of accountability from top down. As Board of Directors to these hospitals it is your moral responsibility to take charge of the financials and run the hospitals as an entity that belongs to you. Most of these executives demand a high six figure paying salary and when their ship sinks, guess what, they are the first one to abandon it and jump to another ship! If you are getting six figure income, you better deliver six figure kind of results.

My Thoughts: Board of Directors, you don’t have much time to turn around this eighteen wheeler overnight. Your driver has fallen asleep on the wheel, and before you deprive your community with proper healthcare at reasonable cost, I urge you to take some time and learn how to read financials of the hospital or get some professional in there to help you with the turnaround. Swallow your pride, leave you ego at the country club, leave you emotions at home, simply bring your talents and passion to work. We will be waiting for you at the door.

So Do it! Save your Communities. Do it for little Joshua who needs a surgery!

Rahim Thawer /
CEO of Waterbury Financial Strategies Inc
http://www.waterburyfs.com