Fund Track: Evidence-based Capital Planning Processes
Timely and collaborative capital planning is key for health system leaders and boards of directors to make necessary and often difficult capital resource acquisition and allocation choices. The American healthcare landscape has undergone enormous change in the last several years, and many systems are rethinking their capital planning process. One constant is the growing focus on value-based care. Hospitals and health systems are under tremendous pressure to improve patient care with an eye toward cost-efficiency. Making a decision to invest in the newest health technology or capital equipment in this environment is challenging, given the need to ensure better patient and financial outcomes. Evidence-based decision-making provides critical insights into whether a health technology has proven benefit, for which patient population, and how the new technology compares with existing and competing alternatives.
Is your capital budgeting process similar to sending a wish list to Santa? On the big day is there disappointment from the ones who received want they needed and resentment towards the ones who received what they wanted? Does it seem like there is never enough funding to balance the routine needs with the needs that drive improved patient outcomes and experience? Part two of this session will focus on capital equipment acquisition and process improvements to reduce costs and increase efficiencies. We will discuss steps that Fairview Health Services has taken to improve processes related to budgeting, sourcing, and requisitioning in order to bring additional value in all phases.
- Identify the components of a strategic capital planning process.
- Outline the challenges facing healthcare leaders in the capital planning process.
- Define the steps necessary to ensure a capital project is objectively evaluated and monitored.
- Describe methods of improving the capital equipment acquisition process.
View the PowerPoint presentation here.
Fund Track: Creating Value Through the Capital Budget Process
For many, the capital budgeting process is nothing more than a wish list. However, if done thoughtfully and with rigor it can create enduring value and save time and money over the short-term and long-term. This session will reveal the means and methods of how to get the money you need.
- Is your capital budget too small, too big, or just right?
- Learn that not spending money is not the same as saving money.
- Define the financial assumption so all capital funding requests are evaluated equally.
- Hear how to rank and select capital projects within the constraints of available capital funds.
Fund Track: Funding New Healthcare Opportunities
Healthcare delivery is complex and evolving rapidly. Transformative ideas and strategies are vital if providers are to continue to improve quality of care and provide better outcomes in the future, but funding pressures are always an issue. The shortage of doctors and nurses, coupled with increased demand and expectation from patients, technological advances that push up costs, changes in reimbursements, an aging population, and the increase in chronic diseases, all provide obstacles to new healthcare opportunities. Healthcare leaders must explore options for expansion and acquisition carefully as they plan for the future. Many systems are also turning to alternative approaches to funding and organization in order to positively impact the future of care. Proper allocation of capital is necessary to achieve an organization’s strategic goals. Objective prioritization is essential for assessing the best use of capital, including identifying “value” to the organization.
One option on the rise is the opportunity for a joint venture partnership between physicians and surgical facilities. When forming a partnership to joint venture a surgical facility such as an ambulatory surgery center or surgical hospital, there are many key elements to consider. What are the legislative restrictions on the development and ownership of physicians in an ASC or Hospital? Should the partnership include an equity partner and/or management company? Should the venture include a health system partner and at what equity level? What considerations should be given to the structure of the governing board to accommodate the different classes of owners? These questions and more will be answered during this presentation. A case study of a unique partnership that includes physicians, two health systems, and a management company will also be explored.
In the second part of this session, learn how to use objective-based capital planning to achieve strategic goals and objectives. The presenters will delve into important considerations, including the importance of realistically presenting and examining all risks, opportunities, and eventualities. Discussion will include methods of ensuring that your organization can ensure that it has adequate re-capitalization to extend the life of existing facilities, as well as plan for future new construction.
- Outline the considerations and key elements of a joint venture with Physicians on surgical facilities.
- Analyze legislative restrictions on the development and ownership of physicians in an ASC or Hospital.
- Describe best practices for effectively prioritizing capital planning in order to meet the needs of the organization and the consumer.
- Detail the challenges organizations face when securing capital funding for new projects in order to expand and improve services.
View the PowerPoint presentation here