Your health system is committed to ensuring access to high-quality care for your community into the future. Funding this strategy requires your organization to be on sound financial footing.
In order for your health system to invest in growth, talent, equipment, research, and infrastructure, you need capital. The concept of capital has a new urgency in the wake of the pandemic, because the opportunities and the pitfalls are more significant.
Today’s Challenges
Currently, the U.S. healthcare system is experiencing its worst performance on record, with roughly 75% of public hospitals breaking even or losing money. Health systems are faced with mounting financial pressures and transformative strategic opportunities to deliver on the promise of high-value care.
Before the pandemic, the healthcare market was challenging, with narrow margins getting narrower. For perspective, the average margin in a U.S. healthcare organization is about 2%. The strongest, best-performing health systems have higher margins, but their profit is still only about 10%.
Cutting-Edge Care Needs Sustainable Financial Performance
The future of healthcare requires radical change. Every health system must now adjust its operating model—from recruitment and retention of providers to investment in enabling technology—and fast. That makes today’s health system performance improvement more pressing than ever.
To make these shifts, you need to understand the complex interdependencies that span every facet of your system and craft holistic plans that not only enhance quality and value but make it easier for your staff and providers to work in healthcare. Whether it’s assessing your physician enterprise or rethinking how your clinical care model drives value, improving financial performance is critical.
How ECG Works
At ECG, our team looks at performance holistically across your system to allow your organization to fund its future. We identify tailored opportunities in which your organization can reduce costs and bring in more revenue.
Our consultants have the healthcare expertise and knowledge to navigate the nuances of the industry, from service lines and the labor force to manufacturer pricing. We also know change isn’t sustainable if it doesn’t fit your culture. That’s why we create comprehensive solutions catered to your organization’s needs. ECG is all about turning strategy into reality, so we make sure our solutions are implementable and feasible for the long term—improving your margin today to support your mission tomorrow.
