Hospital Finance Revealed by a Hospital CFO

Steve Febus, the CFO of Pullman Regional Hospital Explains How Money Works at a Hospital:

1) Their Hospital Had $117M in Annual Billed Charges, $1M in Profit, 66% of Revenue Came from Outpatient Services, 23% from Inpatient Services and 11% from Physician Services.

2) Healthy Patients Are Bad for the Hospital's Business

3) It Bought a Da Vinci Robot for Surgery to Attract a Urologist to their Hospital

4) They Had to Lower Their MRI Prices Because Patients with High Deductible Health Plans Were Shopping for Less Expensive MRIs at a Competing Hospital

5) There is a Duplication of Services at a Hospital only 9 Miles Away

6) Their Hospital Pays for Staff for Maximum Occupancy Even When Their Occupancy is Very Low

7) Hospital Prices are Meaningless

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[kgoswami]

As a current medical student looking to get into the health care admin this is very insightful, thank you very much!

[TheMabes]

I agree...waste in healthcare needs to be eliminated: start with the over-bloated hospital administrators and their high salaries and bonuses....then go after CEOs/CFOs/COOs making millions at "not for profit" hospitals. It'd be a great start. You can take the savings and use it to increase staff salaries...especially CNAs, RNs, and Respiratory Techs...you know, the people that actually take care of the patients. You guys keep forgetting that without us, you have no "business".

[steflift]

I think in the staffing section, they could now in 2024 look to contract out nurses providing services via telemedicine, or nearby hospitals

[anthonyelhage]

Thank you for your diligent work, your delivery and your passion on all your subjects. You have been a tremendous help to me and to others as well, I am sure.

[RJ-fbrx]

you should do a series where you breakdown a hospitals public financial statement and give your thoughts on it and how to improve

[zhadaray]

Great video... ive watched so many. However, I'd had to say that without safe staffing (above the skeleton crew), there will be a drop in quality of care, a decrease in work satisfaction, an increase in people looking elsewhere to work. As demonstrated in the past two years, people leave hospitals when overstressed. It is crucial not to add too many responsibilities and too much work on people carrying out tasks on the frontline. Example, keep the janitor. They are crucial to cleaning the rooms and sanitizing while the healthcare staff is running around with their heads cut off without bathroom breaks. So, I'd have to agree with the CFO. Providing income for their staffing is long term. They're building loyalty. Their staff can rely on the income to buy food and pay for housing. On the other hand, hospitals that operate below the skeleton crew have such a high turnover rate. They offer so many sign-on bonuses rather than fixing the problem. Which leads me to my question, would you happen to know why there are more incentives for new hires than retention?

[lamarnash]

Looking to be a health economist, your video is truly insightful. Thank you.

[scasinger]

I love your videos and don't usually comment, but talking about nurses like they can just be cancelled when patient census is low is super rude. These are people with families. Telling them they can't work and earn because the hospital census is down is unconscionable when a hospital is spending so much money on stupid stuff that they don't need. This is a critical access hospital. Those nurses need to be available when they are needed, not jerked around because the hospital can't keep the census up. I seriously hope you reconsider this comment.

[salvatorethomas]

I have first hand experience being expoited at Wesrchester Medical Center.
I was seriously ill and near death. The doctor's marked me off for dead.
They then subjected me to numerous MRI's and other procedures milking the life out of the insurance company involved. I got to the point where I refused to be subjected to any more of anything.
THEN THEY RELEASED ME. Shortly after they sent an agent to my home wanting me to sign some documents
to claim more services.
Guess what? I'm 100% recovered and moved on.
Today when I visit that same hospital due to their state of the art facilities, they still try.
I refuse their reccomended MRI"s
and sonograms and look and feel very good with no complaints.
I'm a no money grab for them but do watch myself.

[OnlineSlotEnthusiasts]

Great video! Good info here. I work for a health insurance company and really enjoyed the video.

[ajayreddy]

What important if you don’t support the system in these rural places, then there is no access when it is needed. That’s why they are called critical access hospitals

[drartithangudu]

Can you share Steve Genus’ video. I don’t see it in the show notes.

[robertchanningritchie]

What is the lost revenue and cost of an empty hospital bed?

[duancoviero]

Exactly why you shouldn't have a for profit system 🧘🏾‍♂️

[ShraddaNiche]

The only thing about RN's is they are in a union and we can only call them off a certail amount of days. But yes call them off. I concur

[Josh-rkst]

Kudos for calling out hospitals who try to go skeleton crew to save money. It is short sighted and you just end up paying more in the long run.

You should always staff for average-high volumes and never sent staff home because "we are slow". Inevitably, you will get a wave of patients and not be able to provide the level of care needed to keep the hospital moving patients through it. If the ER has a large wave of patients, it means surgery, outpatients, and in-house patients all have to wait and costs you more money in the big picture. Plus, sending people home is the best way to tank employee morale and get less work out of your people.

[eaglerodgerthatradar]

Wow you must be a photographer physician assistant or a barber

[pfgmmoy]

I agree that a source of massive waste In hospitals are useless personnel. But why do they always target nurses and lower paid physicians in this issue? Why is it always us? I worked in hospitals where they have a “chief nursing officer of medication administration”, an absolutely useless title who got paid over 300, 000 dlls per year where most primary care physicians did not get paid even the national average. And then, they were surprised by the fact that they could not recruit internists to staff their clinics.

[baine]

So what you're saying is. For profit healthcare bad?