Hospitals on Life Support?

Waterbury Financial Strategies Inc CEO / Founder Rahim Thawer post this week “Hospitals on Life Support?”

As we are in the midst of a financial meltdown, contemplating bank failures same activity is happening in many of these hospitals behind closed doors. Hospitals can be cash cows; however the model that has been adapted by most of these entities is no longer valid and cannot comprehend the pressure and burden caused by many external factors.

There are a number of internal factors that contribute to the disarray; high government regulations, prohibitions against direct assignment of Medicaid and Medicaid reimbursements, high accounts receivables, reimbursement determination, etc. These are just a few to mention that are playing a vital role in these organizations and there is a failure to form new strategies and new models to run them efficiently for the benefit of the community as a whole.

As the American Hospitals wait for its fate in regards to healthcare reform, the matter will get worse and not necessarily better. Healthcare spending was projected to be at $2.4 trillion in 2008 and it is constantly climbing. Could this very well be a ticking time bomb? Yes, it is. This will create another financial chaos in the marketplace and it will be worse than ever before. As the unemployment figures rise, many of the unemployed individuals are now turning to their state funded programs for help and it just adds more burden to the healthcare system.

The time is now to reform and restructuring these entities. I recently had a conversation with Dr. Wesley MD, PhD who is one of our senior consultants at Waterbury Financial Strategies Inc. Having worked with over 100 medical centers globally, his thoughts where parallel to mine that the worse is coming and we need to prepare ourselves and play the same game but change the rules. He has worked with hospitals for over 40 years in various parts of the world and has perfected a model that can be utilized in any hospital, in any economic cycle.

My Thoughts: Get some professional help to turn things around for you organization and enjoy the fruit when it is all done. It is not a one man’s job to pull out of this recession, it is a team effort and together we work for a common goal. So, let’s do it!


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