Plan4 Team Leads Financial Turnaround for Acute Care Teaching Hospital

Eliminated projected deficit of $15–20 million in one planning cycle

Background

Over a three-year period, Plan4 Healthcare and its partners were engaged to work with an acute care teaching Healthcare System (HCS) to lead a large financial turnaround. The primary Medical Center had recently completed a phased opening to provide specialty and inpatient services. With a staff of over 2,000 serving 55,000 patients and a $450 million annual budget, the HCS needed immediate expert assistance to implement repeatable business practices and strategic planning.

Challenge

For nearly a decade, and throughout the openings of new treatment centers, the HCS lacked consistent financial leadership. As a result, the hospital experienced significant budget deficits, projected at approximately $15–20 million for the initial planning cycle. What’s more, the broader administrative leadership throughout the facility had not been trained on standard financial planning concepts. The HCS needed to undergo a cultural transformation to improve the technical execution of the budget; identify opportunities for cost reductions and revenue enhancement; and create systems and processes for efficient budget execution and oversight. That’s when HCS leadership reached out to Plan4 Healthcare.

Solution

The Plan4 team worked directly with the HCS leadership team and staff to provide expert assistance focused on improving business practices and strategic planning throughout the facility. First, Plan4’s senior experts performed a comprehensive market and operational analysis to identify the organization’s strengths, as well as opportunities for improvement.

During the Business Planning stage, the Plan4 team provided comprehensive on-site training for leadership, administrators, and clinical staff regarding planning and budgetary best practices. Utilizing the proprietary SCORE model, Plan4 experts supported all facility services in developing tactical business plans directed at achievement of financial performance goals.

Next came the Strategic & Budget Implementation phase. Plan4 worked closely with fiscal staff to instill consistent processes for implementing and monitoring strategic and tactical-level business plans. The Plan4 team facilitated collaboration to better align stakeholder groups and improve communication across functional areas.

Finally, during the Financial Management phase, Plan4 experts provided technical help to the HCS’s Chief Financial Officer. This included recommending tools and processes for budget execution, report compilation, as well as analysis of fiscal performance in budget execution.

Facility Details

HCS includes a tertiary care Medical Center, four Primary Care Clinics, and a Community-Based Outpatient Clinic
90-bed inpatient facility with state-of-the-art medical and diagnostic services
Provides healthcare to over 55,000 patients
Employs staff of over 2,000
Annual budget of $450 million
Maintains numerous education affiliations and a range of research affiliations

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Results

Plan4 experts successfully supported implementation of strategic goals and initiatives, enabling the HCS facility to better optimize resources to align with top priorities. The HCS can now develop comprehensive, data-driven business plans for all services. As a result, sustainable budgeting processes — including best practice methods for budget reporting, execution, and oversight — are in place.

After completing just one planning cycle, the Plan4 team helped the HCS eliminate its deficit to finish the year with an operating surplus. At the request of leadership, the Plan4 team provided ongoing training and support to the HCS over a three-year period.

Eliminated projected deficit of $15–20 million in one planning cycle.

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Summary

Over a three-year period, Plan4 Healthcare and its partners were engaged to work with an acute care teaching Healthcare System (HCS) to lead a large financial turnaround
For nearly a decade, the HCS lacked consistent financial leadership. As a result of this and other challenges related to opening a new facility, the hospital experienced significant budget deficits
The Plan4 team worked directly with the HCS leadership and staff to provide expert assistance focused on improving business practices and strategic planning throughout the facility
Experts successfully supported implementation of strategic goals and initiatives, enabling the HCS facility to better optimize resources to align with top priorities
Eliminated projected deficit of $15–20 million in one planning cycle
At the request of leadership, the Plan4 team provided ongoing training and support to the HCS over a three-year period

Start Planning with Efficiency

At Plan4 Healthcare, we enable hospital executives and managers to plan resources more accurately, manage finances more efficiently, and direct operations more effectively, leading to better long-term care. Using our proprietary SCORE business planning methodology and intuitive web-based tools, leaders can simplify complexity and establish sustainable systems that balance costs and mitigate risk. The platform is enhanced by a team of experts who deliver trusted, continuous guidance and a strategic perspective. Contact us and discover a better planning strategy today.