This article aims to identify cost drivers associated with these processes and to suggest improvements to reduce hospital costs.
The model produces estimated savings for implementing new processes. Annual savings, by implementing the improved process, have the potential to save several billion dollars annually in US hospitals.
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The other analysis in this study is related to hospital billing processes. Increased spending on hospital billing processes is not entirely due to hospital inefficiency.
The phenomenon behind the 'Hospital' Celtics
Hospitals and health systems announced 21 transactions in the second quarter of , and year-to-date volume in is following a similar trajectory as last year with 46 announced transactions in the first half of the year versus 50 in the first half of While hospital merger and acquisition activity is starting to slow, hospital and health system leaders are pursuing larger deals, the firm found.
Three major hospital merger and acquisition announcements drove the recent mega-merger trend, the report showed. The health systems are geographically contiguous, but have little overlap in existing markets, Kaufman Hall pointed out. We expect to see this trend continue for the immediate future.
Additionally, Kaufman Hall found that a significant number of hospital merger and acquisition deals in the second quarter of involved divestitures, or the sale of one or more hospitals from one health system or hospital operator to another. About 40 percent of announced transactions in the second quarter were divestitures, the firm reported.
'Hospital' behind the scenes
For-profit health systems or hospital operators accounted for five out of seven divestitures during the period. Strategic partnerships with another organization can also accomplish the same goals, while expanding care models into new regions.
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