Remove Fixed Costs Remove Hospitality Remove Revenue
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When M&A Is Not the Best Option for Hospitals

Harvard Business Review

Historically, larger scale has offered hospital systems a number of advantages, including increased referral volumes, better access to capital, stronger pricing power, and classic cost economies. For instance, larger scale has enabled many hospital systems to lower their per-patient operating costs significantly.

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Health Systems Need to Completely Reassess How They Manage Costs

Harvard Business Review

hospitals and health systems experienced an average 39% reduction in their operating margins from 2015 to 2017. This was because their expenses grew faster than their revenues, despite cost-cutting initiatives. Contracted services account for significant fractions of all hospitals’ operating expenses.

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What Could Amazon’s Approach to Health Care Look Like?

Harvard Business Review

My recent HBR article on information technology in health care highlights the magnitude of investments that hospitals are making in electronic medical records (EMRs) as well as the frustration that many providers are feeling due to the time they must devote to entering data into those systems.

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Bringing the Power of Platforms to Health Care

Harvard Business Review

.” There, in the shadow of Google’s global headquarters, the audience laughed on cue, quickly grokking the embarrassing point: it’s 2016 and this $3 trillion industry that our lives depend upon still relies on faxes, clipboards, and isolated instances of legacy software locked away in hospital basements.

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Tackling the “Hotspotter” Patient Challenge

Harvard Business Review

A fascinating business dynamic will unfold as health care providers in the United States shift from a reimbursement system that has historically paid for procedures performed to one that rewards population health — providing the total care of a community at a fixed cost and improving its members overall health.

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Constraints on Health Care Budgets Can Drive Quality

Harvard Business Review

Working under a fixed-cost ceiling was, of course, difficult. We had little or no revenue-raising ability, and we had to meet a clear, challenging, and publicly reported set of quality objectives. The Parliament would vote on an expenditure limit and the NHS had to live within that limit.

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Exclusive: Jim Collins on ‘Thriving In Chaos’

Chief Executive

And if we do that, we can’t help but grow revenues per fixed cost. Five years ago, in the wake of the bruising presidential election, I spent some time with Collins at his offices in Boulder, Colorado, asking him some fundamental questions about the nature of leadership in America.