Balancing Quality Care and Financial Stewardship (Sponsored Content)

In a time of ever-increasing healthcare costs, the U.S. ranks among the highest in the world in terms of average annual costs of approximately $14,000 per individual. Hospitals and health care systems face the challenge of providing high-quality patient care while maintaining financial stability. Mercy Springfield Communities has implemented innovative strategies to address this challenge and offers valuable insights and perhaps an adaptable model for other industries grappling with similar resource management issues.

At the heart of Mercy’s efforts is the Clinical Value Analysis Team (CVAT), a multidisciplinary group that evaluates new medical technologies and products. Dr. Sadaf Sohrab, Chief Medical Officer, explains, “We are looking at cost of supplies, drugs and equipment being used to treat our patients on a regular basis. We care not only about providing the best quality care but also at a cost that our community can afford.”

 This approach ensures new technologies are not only clinically beneficial but also financially viable. Chief Financial Officer BJ Roberts adds, “When evaluating new purchases, we consider the price of the requested product or technology as well as what clinical benefits it is going to give us versus what we’re using now. This helps us begin to determine if this is something we want to at least trial.”

The CVAT process allows Mercy to stay at the forefront of medical technology while being mindful of costs. Sohrab emphasizes, “We do want that latest technology, but we also have a financial responsibility of being good stewards of our resources for the sake of our patients.”

A recent example involved the acquisition of a new surgical robot. Roberts explains, “Data shows us this robot gives us the same or better functionality and the same or better outcomes as what the most popular robot in the market is for a third of the cost. So instead of spending $1.5 million on this particular robot, ours was a little less than $500,000 to implement.”

Another key strategy is standardizing medical supplies and reducing waste. “Without standardization, everybody wants a different product, making it difficult to order, store and use supplies before they expire,” Sohrab explains. “We’re even looking at the cost per procedure for each physician to see if there are best practices that we can learn from each other. For instance, is there an opportunity that if the diagnostic yield is similar for two needles then can we opt for the needle that saves the patient money?”

Crucial to the success of these initiatives is clear communication with medical staff. Sohrab stresses the importance of transparency. “If you can show them that their patient outcomes will be the same, and the cost is less, I think that’s incredibly important,” Sohrab says.

Projecting needs well into the future has also proven to be a key to success. Mercy has implemented a robust financial planning process, Roberts explains. “We’ve established an annual capital investment plan, and then we also have a five-year capital investment plan.” This approach allows for strategic investment in future technologies while maintaining current operations and high-quality patient care.

Roberts adds, “Putting those financial disciplined processes in place has helped not only our operational leaders but our clinical leaders as well, to connect the dots and understand the operations of whatever units they’re responsible for and how that impacts the organization as a whole.”

This content is brought to you by Mercy Springfield Communities.