Restructuring hospital costs to improve solvency and prevent bankruptcy.
The authors present a framework, derived from successful experience with an actual hospital turnaround, for helping hospital management to restructure costs quickly and strategically under the pressure of losses. The framework isolates structurally inefficient hospital overheads into four distinct categories and prescribes very different corrective actions for each of them. Application of the framework to bankruptcy is also discussed.
Townsend
E J
EJ
McMullen
J A
JA
D003361:Cost Allocation; D003365:Costs and Cost Analysis; D003625:Data Collection; D004526:Efficiency; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006748:Hospital Departments / Q000191:economics*; D011445:Prospective Payment System; D014481:United States