Hardly any other sector is currently undergoing such radical change as the healthcare industry. Changing conditions and the still palpable aftershocks of the coronavirus pandemic are making financial planning more difficult. But even in such an uncertain environment, it is worth creating an integrated financial plan, as this is the only way to identify which influences represent an external shock and which circumstances indicate a management problem.
From hybrid DRG to wage negotiations with the Marburger Bund
Within the healthcare industry, many framework conditions are determined by external decision-makers outside the sphere of influence of hospital management. The decision-makers for the framework parameters within the healthcare industry range from political actors, who determine significant changes to the entire healthcare system, such as the recent shift towards outpatient care, to specialized trade unions, which negotiate wage increases for medical professionals. The same applies to flat rates, which specify the monetary remuneration for individual treatments. These flat rates are also determined by external factors and cannot therefore be influenced by a hospital. These influencing factors have a significant impact on the economic performance of a hospital, but at best they can only be anticipated and cannot be specifically controlled by hospital management. Within financial planning, it is therefore important to work with assumptions. These must be coordinated with well-informed industry experts and quantified.
From abstract framework conditions to concrete planning
Quantifying the factors that influence day-to-day business is a major challenge. It requires an understanding of medical processes, political and legal frameworks, as well as financial models and business management processes. External consultants can generate significant added value, particularly in the healthcare sector, as they can draw on a range of different qualifications through a team of industry experts. Thanks to their experience with multiple clients and corporate planning, they can use best practices and industry trends to objectively assess a company’s own measures and business models. In addition, stakeholders benefit from experience gained in projects with smaller and larger clients. This also allows size-dependent effects to be better classified. The process and structure of corporate planning is also guaranteed by existing processes and templates. This also ensures professional and methodically sound implementation of the planning.
Corporate planning as a management tool within the healthcare industry
As already mentioned, changing conditions inevitably lead to deviations between actual figures and corporate planning. However, these should not be interpreted as a sign that planning is pointless. When deviations occur, the drivers must be identified and explained. These explanations are particularly important for communication with stakeholders such as banks or shareholders. Deviations can be explained, for example, by external effects such as changing parameters, but also by a lack of progress in the implementation of measures. The latter in particular is essential for building and sustainably securing a more efficient and successful corporate structure in the long term. Only this distinction enables management to identify the background noise that is inevitable within the healthcare system, determine potential operational risks, and take countermeasures. Dedicated financial planning is therefore essential so that management can efficiently prioritize existing measures and track their implementation.
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