Grant Thornton has produced a white paper offering a number of suggestions for healthcare organisations to assist them in restoring rigor and discipline throughout their businesses.
With the uncertainty surrounding healthcare reform, the effects of a slow-to-recover economy, and the constraints of tight credit markets, the healthcare industry is facing challenging times.
These factors, combined with rising costs, lower reimbursement rates, and higher levels of charitable care and bad debt, have limited financing options that were readily available to the industry for years, putting a growing strain on healthcare systems around the country.
“Prior to the financial sector meltdown, those companies and organisations that provide healthcare services were thought to be recession-proof,” says Mark E. Toney, co-leader of the corporate advisory and restructuring services group. “We are seeing that the healthcare sector is definitely not immune. We advise that healthcare organisations take proactive steps to prepare for what we believe could be a slow economic recovery, with financing options difficult to access for all but the most creditworthy.”
Besides looking at financing concerns, the white paper examines six business factors that healthcare organisations should consider as they navigate through these difficult times. Some of the topics covered include: optimizing cost structure and improving margins; examining and strengthening key relationships; and seeking out consolidation opportunities.
