HMA Spotlight
Achieving financial resilience in a time of turbulence
Healthcare business leaders face significant policy and regulatory headwinds. Ensuring that your organization is financially resilient to weather the storm should be a priority. Achieving financial resilience enables leaders to preserve core functions and staff. We’ve found that indirect costs are often overlooked and undermanaged and represent an opportunity to build margin (think overhead and administrative costs such as vendor spend).
HMA can help identify cost savings
We find it useful to conduct the following sequence of steps:
Review / categorize all vendor spend to find areas with unnecessary costs, overlapping services, or outdated pricing.
Analyze contracts line -by -line to identify where terms can be improved or where the scope no longer fits current needs.
Stack rank initiatives by risk levels and speed.
Negotiate directly with vendors to lower rates, adjust service levels, or consolidate under better pricing structures.
Monitor results and vendor performance to ensure savings hold over time and services stay aligned with operational needs.
In assessing indirect costs, we visually depict areas of cost reduction by risk of disruption to support client decision-making. There is often a locus of opportunity that can be trimmed with little or no impact to the core business.
As you prepare to batten the hatches, consider assessing indirect costs. Even if the storm isn’t fierce, conducting this work will give you improved real options for optimal decision-making.
Ready to transform your organization?
Whether you are focused on payments, healthcare delivery, government policy, behavioral health, life sciences, Medicare, Medicaid, or Managed Care, our HMA experts are ready to partner with you, from initial strategy-setting through implementation.
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