4 Tips for Hospitals to Avoid Going out of Business by 2019

Share Article

Estimates are that 15% of hospitals will go our of business by 2015 because of failure to repond to Value Based Purchasing. Reduced reimbursements under performance measures, patient satisfaction scores and other core measures in value based purchasing will reduce the payments made to hospitals from Medicare and Medicaid. http://www.saferpatients.com

News Image
If you are depending on individual clinicians to spectacularly rise to the challenge on their own, you will fail. Sustained results will only come from a systems approach that hard-wires daily habits of all personnel.

Value Based Purchasing (VBP) is a control scheme introduced by Center for Medicare and Medicaid Services (CMS) to reduce the cost of health care. Under VBP, providers will be reimbursed for care given to Medicare patients based on patient satisfaction and the ability to get good scores on CMS core measures. http://go.cms.gov/14PQAKf

Steve Harden, CEO of LifeWings and a patient safety training expert says, "Medicare has been very clear about the impact to hospital bottom lines. Average performing hospitals won’t break even. If they have average core measures, and average patient satisfaction the institution will lose money."

The way to maximize reimbursement and protect the hospitals budget is to have high performance compared to national benchmarks with other hospitals across the country, and to make dramatic improvement against baseline scores. Either way, hospitals must improve.

Adding the reduced reimbursements to an additional 20.4 million Medicare patients over the next decade, and then adding the effect of productivity adjustments, 15 percent more institutional providers will go bankrupt by 2019, according to the former administrator of CMS Leslie Norwalk reported in Fiercehealthcare.com.

What is the solution to value-based purchasing? According to LifeWings, patient safety training firm, there are four steps to insuring pay for performance in medical institutions.

1. Increased use and adherence to protocols
2. Real-time monitoring and feedback
3. Focused scorecards
4. Better training for doctors and nurses on patient communication techniques.

LifeWings provides award winning teamstepps training to increase adherence to protocols and improve communication among clinicians.. Hospitals across the country have had dramatic results such as 195% improvement in uneventful procedural cases; 50% reduction in surgical counts errors; 25% decrease in medication discrepancies; 20% decrease in OR equipment discrepancies; 50% decrease in patient ID discrepancies; 32% decrease in malpractice claims dollars per surgical discharge.

Valerie Parisi, MD, MPH, MBA Dean of School of Medicine at The University of Texas Medical Branch had this to say about training with LifeWings, "This Institute bonded leadership and created excitement and energy for our project. I don’t believe a CRM implementation would be successful without this in‐depth preparation.”

Harden says, "You must be better than average, or you will be worse off financially next year. If you are depending on individual clinicians to spectacularly rise to the challenge on their own, you will fail. Sustained results will only come from a systems approach that hard-wires daily habits of all personnel."

Watch a three-minute movie about LifeWings.

About LifeWings Partners LLC:
LifeWings Partners was founded by a former U.S. Navy Top Gun instructor, a commercial airline pilot, and two physicians who are former NASA astronauts. LifeWings’ practical and effective teamwork training programs are highly effective in reducing human error and currently involve the training of more than 13,000 high-performance medical team members per year. Measurable results are found in all LifeWings’ initiatives. To find out more, please visit http://www.saferpatients.com or https://www.facebook.com/LifeWingsSaferPatients or follow on Twitter @SaferPatients.

http://go.cms.gov/14PQAKf

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Stephen Harden
Lifewings Partners, LLC
901-457-7505
Email >

Angela Myers
LifeWings Partners, LLC
901-457-7505
Email >
Visit website