Healthcare performance management in a weak economy

Overview

Established healthcare organizations have likely navigated good – and bad – economic conditions. Interestingly, management challenges exist in both environments. Yet, most decision-makers would agree that it takes much greater organizational maturity to weather a negative economic climate.

Think of it this way: In a strong economy, healthcare organizations face considerably less risk from sub-par decisions, under-performing facilities, staffing gaps, inefficient resource utilization, cumbersome supply chain processes, and inefficient back-office operations. In a tightening economy, however, organizations with bloated operating structures tend to be punished in the marketplace.

The global healthcare industry is now in crisis: economic challenges, escalating costs, inconsistent quality, a critical shortage of skilled workers, and an increasing demand for services is causing both providers and payers of care to look for innovative ways to increase operating margins, reduce costs, and improve quality— while increasing access to care.

Without question, weathering a downturn depends, in part, on visionary leadership. But choosing the right strategy is easier when your decision-makers have access to robust insight that paints a complete and accurate picture of organizational performance. Healthcare providers and healthcare payers are expected to survive any economic conditions to continue to provide valuable healthcare services to the community.

To gain this insight, decision-makers must be able to monitor all key financial indicators in real time. So it’s essential to understand how IBM Cognos® performance management software and solutions can help you adopt the response strategies that can shield your organization from an economic storm.

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Published by IBM, May 2009

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