Jackson, NJ - "Rapid advances in technology and cuts in Medicare and Medicaid will force healthcare providers to reconfigure their traditional approaches to reign-in expenses", according to Joe Colonna, CEO of Jackson, NJ based Strategic Initiatives In Healthcare, LLC.
According to Colonna, "providers have not been able to control their expenses to the degree that they had hoped, through the use of traditional approaches. While the consolidation of purchasing volumes through numerous regional and national organizations has helped substantially, healthcare organizations are still not realizing enough savings. To enhance their current practices, providers are going to have to revisit the concept of "shared services" which started in the early 1970's, but fizzled simply because there was not the same level of urgency behind the need to focus on expense reduction that there is today."
While many volume purchasing organizations currently in existence are considered "shared services" themselves, the expansion of other services to allow providers to pool their resources to slash operating expenses has been a relatively dormant concept for nearly thirty years. Recently, according to Colonna, pockets of providers are feeling their way by establishing such models on a limited basis. He commented, "Strategic Initiatives In Healthcare has devoted more than 13,000 hours of research and development into avenues that providers can take to control their expenditures without slashing staffing levels to the point where quality outcomes and service could be impacted negatively. Our Chairman and Founder, William McFaul, arguably one of the healthcare industry's foremost innovators of shared services modeling in the 1970's has been urging the industry to revisit the opportunity to maximize these concepts for several years; even before this exhaustive research endeavor. When Tom MacVaugh, another expense management professional highly regarded within the industry for his expertise in shared services joined our firm, we encouraged him to prepare a noncommercial "white paper" chronicling the history of the concept and outlining its potential as a realistic approach in today's environment."
More information and a copy of the White Paper can be found at www.SIHealthcare.com.
Source: Strategic Initiatives In Healthcare, LLC - SIH