One of our clients recently told us he wants to preserve his hospital’s existing FFS net revenue stream to ensure fiscal sustainability, grow brand strength, and transition to some value-based care. This is not an unusual request given today’s health care environment.

We design a two-tier approach that starts with a thorough review of charge and payer data, the charge master, and the drivers of revenue.

Then we look at brand strength by department and service line, again teasing the data and using a fresh competitor analysis to obtain key deliverables.

This always produces actionable intelligence for a new branding campaign that will reinforce brand strength and expand brand awareness (reach).

We use our algorithm to reduce contractual allowances and charges strategically, improving the important cost-to-charge ratio and returning the charge master to a more efficient and effective revenue-generator.

This can include a charge master reconfiguration where all charges become more rational, transparent, and defensible, delivering optimum pricing transparency and defensibility. This enhances patient engagement and increases patient satisfaction while strengthening the hospital’s market positioning.

Our process often begins with a client’s five-fold charge:

1) Preserve the FFS net revenue stream

2) Implement a strategic plan to grow more net revenue in select service lines

3) Make charge master pricing more rational, transparent, and defensible

4) Lay a foundation for the transition to more value-based care

5) Improve patient engagement and enhance patient satisfaction

These are not disparate goals, but ones that naturally hang together in an ideal health care model. We invite you to take a look at what a real Strategic Advisory can do.

Steve Acree, my business partner, and I have over 70 years of combined experience in health care finance, consulting, and problem-solving.

Jonathan Gehris