Financial performance of English NHS trusts and variation in clinical outcomes: a longitudinal observational study.

OBJECTIVES: To examine the association between financial performance as measured by operating margin (surplus/deficit as a proportion of turnover) and clinical outcomes in English National Health Service (NHS) trusts. SETTING: Longitudinal, observational study in 149 acute NHS trusts in England between the financial years 2011 and 2016. PARTICIPANTS: Our analysis focused on outcomes at individual NHS Trust-level (composed of one or more acute hospitals). PRIMARY AND SECONDARY OUTCOMES: Outcome measures included readmissions, inpatient satisfaction score and the following process measures: emergency department (Accident and Emergency (A&E)) waiting time targets, cancer referral and treatment targets and delayed transfers of care (DTOCs). RESULTS: There was a progressive increase in the proportion of trusts in financial deficit: 22% in 2011, 27% in 2012, 28% in 2013, 51% in 2014, 68% in 2015 and 91% in 2016. In linear regression analyses, there was no significant association between operating margin and clinical outcomes (readmission rate or inpatient satisfaction score). There was, however, a significant association between operating margin and process measures (DTOCs, A&E breaches and cancer waiting time targets). Between the best and worst financially performing Trusts, there was an approximately 2-fold increase in A&E breaches and DTOCs overall although this variation decreased over the 6 years. Between the best and worst performing trusts on cancer targets, the magnitude of difference was smaller (1.16 and 1.15-fold), although the variation slowly rose during the 6 years. CONCLUSIONS: Operating margins in English NHS trusts progressively worsened during 2011-2016, and this change was associated with poorer performance on several process measures but not with hospital readmissions or inpatient satisfaction. Significant variation exists between the best and worst financially performing Trusts. Further research is needed to examine the causal nature of relationships between financial performance, process measures and outcomes.

Role of Surgical Services in Profitability of Hospitals in California: An Analysis of Office of Statewide Health Planning and Development Annual Financial Data.

With constant changes in health-care laws and payment methods, profitability, and financial sustainability of hospitals are of utmost importance. The purpose of this study is to determine the relationship between surgical services and hospital profitability. The Office of Statewide Health Planning and Development annual financial databases for the years 2009 to 2011 were used for this study. The hospitals' characteristics and income statement elements were extracted for statistical analysis using bivariate and multivariate linear regression. A total of 989 financial records of 339 hospitals were included. On bivariate analysis, the number of inpatient and ambulatory operating rooms (ORs), the number of cases done both as inpatient and outpatient in each OR, and the average minutes used in inpatient ORs were significantly related with the net income of the hospital. On multivariate regression analysis, when controlling for hospitals' payer mix and the study year, only the number of inpatient cases done in the inpatient ORs (ß = 832, P = 0.037), and the number of ambulatory ORs (ß = 1,485, 466, P = 0.001) were significantly related with the net income of the hospital. These findings suggest that hospitals can maximize their profitability by diverting and allocating outpatient surgeries to ambulatory ORs, to allow for more inpatient surgeries.

Does a global budget superimposed on fee-for-service payments mitigate hospitals' medical claims in Taiwan?

Taiwan's global budgeting for hospital health care, in comparison to other countries, assigns a regional budget cap for hospitals' medical benefits claimed on the basis of fee-for-service (FFS) payments. This study uses a stays-hospitals-years database comprising acute myocardial infarction inpatients to examine whether the reimbursement policy mitigates the medical benefits claimed to a third-payer party during 2000-2008. The estimated results of a nested random-effects model showed that hospitals attempted to increase their medical benefit claims under the influence of initial implementation of global budgeting. The magnitudes of hospitals' responses to global budgeting were significantly attributed to hospital ownership, accreditation status, and market competitiveness of a region. The results imply that the regional budget cap superimposed on FFS payments provides only blunt incentive to the hospitals to cooperate to contain medical resource utilization, unless a monitoring mechanism attached with the payment system.

[Are investment activity and backlog in investments risks for university medicine in Germany?]. / Investitionstätigkeit und Investitionsrückstand als Risiko-faktoren für die Hochschulmedizin?

University medicine in Germany requires significantly higher funding and investment because its tasks not only include health care but also research and teaching. However, over recent decades less and less funding compared to the development of the turnover has been available. This trend is due to decreasing public funding. The diminishing funding has caused a major backlog of investment at German university hospitals. The first part of the article summarizes the investments policies at university hospitals and other hospitals. The second part describes the investment needs in university medicine and exposes risk factors for research, education and health care due to the process of investment planning and realization. Goal-oriented solutions are shown to facilitate investments. The third part discusses several risks caused by insufficient investments in university medicine. There are special risks for research, teaching, and the capacity for innovation in university medicine besides economical and medical risks. Some policies and financial strategies to overcome the backlog in investments are presented. After a summary, the article concludes with some practical examples of further measures to ensure sustainable funding.

A gestão em saúde e as ferramentas gerenciais: a experiência com o SISPLAN do Instituto Nacional do Câncer / Health management and managerial tools: the SISPLAN experience at the Brazilian National Cancer Institute

A gestão na área de saúde vem sofrendo modificações ao longo do tempo. As últimas duas décadas foram voltadas para o crescimento e implementação da gestão profissional neste setor, com o suporte do uso de sistemas de planejamento informatizados como apoio à gestão. Assim, este estudo tem como principal fio condutor as premissas da Gestão e do uso de ferramentas gerenciais. Embora não seja um estudo de caso, apóia-se em uma experiência concreta de gestão no Instituto Nacional de Câncer do Rio de Janeiro. Nesta pesquisa é observado que as organizações de saúde sempre estiveram voltadas para a assistência sem preocupação com a gestão em si, mas que a partir da crise econômica mundial dos anos 80 houve mudanças neste cenário. Estas alterações ocorreram não somente na gestão da saúde, como também na profissionalização do gestor. O uso de ferramentas gerenciais também é contemplado nesta pesquisa, porquanto hoje se debate a sua importância no auxílio do planejamento e da estratégia a ser orientada para estas organizações. Paralelamente à discussão sobre os sistemas mais usados nas empresas e organizações de saúde, é discutida como ferramenta gerencial principal nesta tese o Sistema de Planejamento (SISPLAN) do Instituto Nacional de Câncer do Rio de Janeiro, um instrumento desenvolvido na Instituição e que vem redesenhando os espaços institucionais de decisão e de discussão de políticas. Este estudo demonstra que a aplicação desta ferramenta gerencial possibilitou a implementação dos projetos prioritários e mais relevantes. Como ferramenta gerencial, o SISPLAN facilitou o desenvolvimento de uma gestão participativa e compartilhada em todos os níveis. Apesar das melhorias que ainda são necessárias para o aperfeiçoamento deste instrumento, são inegáveis as conquistas obtidas no transcorrer deste processo...

A gestão em saúde e as ferramentas gerenciais: a experiência com o SISPLAN do Instituto Nacional do Câncer

A gestão na área de saúde vem sofrendo modificações ao longo do tempo. As últimas duas décadas foram voltadas para o crescimento e implementação da gestão profissional neste setor, com o suporte do uso de sistemas de planejamento informatizados como apoio à gestão. Assim, este estudo tem como principal fio condutor as premissas da Gestão e do uso de ferramentas gerenciais. Embora não seja um estudo de caso, apóia-se em uma experiência concreta de gestão no Instituto Nacional de Câncer do Rio de Janeiro. Nesta pesquisa é observado que as organizações de saúde sempre estiveram voltadas para a assistência sem preocupação com a gestão em si, mas que a partir da crise econômica mundial dos anos 80 houve mudanças neste cenário. Estas alterações ocorreram não somente na gestão da saúde, como também na profissionalização do gestor. O uso de ferramentas gerenciais também é contemplado nesta pesquisa, porquanto hoje se debate a sua importância no auxílio do planejamento e da estratégia a ser orientada para estas organizações. Paralelamente à discussão sobre os sistemas mais usados nas empresas e organizações de saúde, é discutida como ferramenta gerencial principal nesta tese o Sistema de Planejamento (SISPLAN) do Instituto Nacional de Câncer do Rio de Janeiro, um instrumento desenvolvido na Instituição e que vem redesenhando os espaços institucionais de decisão e de discussão de políticas. Este estudo demonstra que a aplicação desta ferramenta gerencial possibilitou a implementação dos projetos prioritários e mais relevantes. Como ferramenta gerencial, o SISPLAN facilitou o desenvolvimento de uma gestão participativa e compartilhada em todos os níveis. Apesar das melhorias que ainda são necessárias para o aperfeiçoamento deste instrumento, são inegáveis as conquistas obtidas no transcorrer deste processo...

The management in the health area has been experiencing changes through time. The last two decades were concerned only to the growth and implementation of the staffing management system, with the use of computerized planning system as a kind of support to the management itself. Thus, this thesis takes the premises of the Management and the use of Managerial Tools as the basis of its research. Although, it is not a study of case, it is supported on a real managerial experience applied at National Cancer Institute of Rio de Janeiro. In this study, we observe that the health organizations used to be concerned only to the assistance, without worrying about the management itself. This thought has changed following the World Economical Crises in the 80’s, and after that, the health industry became concerned not only in the health management, but also in the professionalism of the manager. The usage of managerial tools in the heath system is also discussed in this thesis, due to the importance that is given to this subject. Nowadays, we debate a lot, the importance of a managerial tool in helping the planning and strategy to be presented as a model to the health organizations. In parallel to the discussion about the most used managerial systems in the companies and organizations of health, this study also discusses, as the most important focus, a managerial tool called SISPLAN of National Cancer Institute of Rio de Janeiro, a tool developed by this institution which has been restructuring the institutional spaces of decision and of politics discussion This research also shows that the application of SISPLAN made able the implementation of more relevant and priority projects. As a managerial tool, SISPLAN facilitated the development of a management system which was both participative and shared in all levels. Despite of improvements that are still necessary for the improvement of this tool, they are undeniable the achievements obtained in the course of this process. It can be realized, however, that spite of its features, SISPLAN doesn’t seem to be a managerial tool which express the institution strategy, because it behaves as a planning tool. So, we concluded that according to balanced scorecard features, it must be associated to SISPLAN as a complementary managerial tool which allows the construction of the strategy, based on a chain of cause and effect relations and on booster factors. This thesis aims to demonstrate, how essential is the availability of a managerial tool is essential for the success of the heath management.

Weathering a financial storm.

After the effects of Hurricanes Katrina and Rita reached Texas, The University of Texas M.D. Anderson Cancer Center mapped out its disaster recovery: Assess the impact Develop a clinical recovery plan. Create capacity. Maintain control of expenses.

Planning your cancer service line three steps to success.

One Midwest health system found that by using a three-step approach to bolster the success of its lung cancer program, the program exceeded patient volume targets within its first year of operation. The program now serves as a business model for other investment opportunities in site-specific cancer programs at the health system.

Implementing an intravenous insulin protocol in your practice: practical advice to overcome clinical, administrative, and financial barriers.

Diabetes mellitus is the fourth most common comorbid condition among hospitalized patients, and 30% of patients undergoing open-heart surgery have diabetes. The link between hyperglycemia and poor outcome has been well described, and large clinical trials have shown that aggressive control of blood glucose with an insulin infusion can improve these outcomes. The barriers to implementing an insulin infusion protocol are numerous, despite the fact that doing so is paramount to clinical success. Barriers include safety concerns, such as fear of hypoglycemia, insufficient nursing staff to patient ratios, lack of administrative and physician support, various system and procedural issues, and resistance to change. Key steps to overcome the barriers include building support with multidisciplinary champions, involving key staff, educating staff, and administrators of the clinical and economic benefits of improving glycemic control, setting realistic goals, selecting a validated insulin infusion protocol, and internally marketing the success of the protocol.

The business of palliative medicine: management metrics for an acute-care inpatient unit.

For any palliative medicine inpatient unit to be economically viable, certain management metrics need to be followed. Palliative medicine can provide both a compassionate and economical service within the current acute inpatient hospital environment. In this article, we will review the administrative and financial factors we have identified that influence the business of acute palliative medicine.

Improved management of radiotherapy departments through accurate cost data.

BACKGROUND AND PURPOSE: Escalating health care expenses urge governments towards cost containment. More accurate data on the precise costs of health care interventions are needed. We performed an aggregate cost calculation of radiation therapy departments and treatments and discussed the different cost components. MATERIALS AND METHODS: The costs of a radiotherapy department were estimated, based on accreditation norms for radiotherapy departments set forth in the Belgian legislation. RESULTS: The major cost components of radiotherapy are the cost of buildings and facilities, equipment, medical and non-medical staff, materials and overhead. They respectively represent around 3, 30, 50, 4 and 13% of the total costs, irrespective of the department size. The average cost per patient lowers with increasing department size and optimal utilization of resources. Radiotherapy treatment costs vary in a stepwise fashion: minor variations of patient load do not affect the cost picture significantly due to a small impact of variable costs. With larger increases in patient load however, additional equipment and/or staff will become necessary, resulting in additional semi-fixed costs and an important increase in costs. A sensitivity analysis of these two major cost inputs shows that a decrease in total costs of 12-13% can be obtained by assuming a 20% less than full time availability of personnel; that due to evolving seniority levels, the annual increase in wage costs is estimated to be more than 1%; that by changing the clinical life-time of buildings and equipment with unchanged interest rate, a 5% reduction of total costs and cost per patient can be calculated. More sophisticated equipment will not have a very large impact on the cost (+/-4000 BEF/patient), provided that the additional equipment is adapted to the size of the department. That the recommendations we used, based on the Belgian legislation, are not outrageous is shown by replacing them by the USA Blue book recommendations. Depending on the department size, costs in our model would then increase with 14-36%. CONCLUSION: We showed that cost information can be used to analyze the precise financial consequences of changes in routine clinical practice in radiotherapy. Comparing the cost data with the prevailing reimbursement may reveal inconsistencies and stimulate to develop improved financing systems.

[Performance-related income budget. A means for reorganizing hospital financing]. / Leistungsbezogene Erlösbudgets. Ein Weg zur Weiterentwicklung der Krankenhausfinanzierung.

Performance-related budgets are the result of negotiated performance units per hospital multiplied by state-wide negotiated prices. Such hospital budgets contain profit chances and loss risks. Exceeding the contractual fixed amount leads to price reductions, falling below that amount leads to lower reimbursement. A consistent pricing system for basic and department performance units could solve the present problem of cost separation in Germany. A step in this direction is the definition of hospital department groups and the construction of an average department treatment case, which could be priced on an average cost base. In the long run, more flexibility according to pricing and budgeting can be developed. Competitive insurance companies should be free to find their own budgets so that a hospital can have several independent contractors.

Profits with a purpose: an interview with Tom Chapman. Interview by Nancy A. Nichols.

Greater Southeast Community Hospital is located in the center of one of Washington, D.C.'s most troubled and isolated neighborhoods. Like so many inner-city hospitals, it serves a population struggling with high rates of poverty, crime, and illiteracy. As a result, the area suffers from the highest rates of infant mortality, cancer, and coronary disease in the D.C. area. When Tom Chapman joined the hospital in 1984, it was giving away roughly 11% of its care-or about $11.5 million worth of medical services to indigent residents. If things continued at that rate, the hospital would soon go out of business. His challenge: to keep Greater Southeast solvent while shoring up the community that surrounds it. Chapman, who grew up in a housing project himself, understands the problems of inner cities innately. Working in tandem with community residents, Greater Southeast has developed a broad range of preventive and supportive programs, such as housing, day care for children and the elderly, nursing home services, and literacy training. Last year, Chapman was promoted to CEO of Greater Southeast Health Care, a broad network comprising two hospitals, three nursing homes, a physician care network, and over 50 community programs. He remains true to his original mission: "I want to create a network of participants, stringing together various organizations and players, each of whom have something special to contribute to urban problems.... What we are really doing is creating a community."