Aging baby boomers strain your capacity to deliver acute and chronic care. Medical advances compel you to invest in new diagnostic and treatment technologies. You want to position your organization for growth by offering new diagnostic and treatment technologies, and you need expand your facility to accommodate these changes. But reimbursements—tied to your ability to deliver quality and value—are shrinking. Margins are slim. And, in today’s depressed economy, the flow of capital has dried up to a trickle. As a result, many hospitals are delaying or canceling their expansion plans. Some are deciding to renovate rather than replace their facilities. Some are turning to mergers, acquisitions and divestitures to improve their financial performance. Such transactions can abruptly change a hospital’s facility needs.
Making an informed facility planning decision means carefully analyzing many complex issues. Consider how your existing facility constrains growth. The potential financial return from a new facility versus the cost. Is renovation a more practical choice? Are you making the most efficient use of available space and resources? How will you raise the capital to fund facility changes? How can you justify the need to build replacement facilities to payers, regulators and lenders? A life-cycle cost approach to facility planning can help you answer these questions. It can help you decide how aggressively to pursue your implementation strategies. It can help you develop a strategy for consolidating multiple campuses. It can give you the information you need to challenge the value of investments that become acquisition targets.
US Healthcare Provider Practice