in the field of Health Care
Adding a new wing, preparing a budget and forecast and evaluating the effectiveness
of operations are some of the areas that present financial and management challenges to
health care institutions. In its long involvement with health care providers, Touche Ross
has assisted many institutions in dealing with such problems. The briefly described cases
represent a broad range of problems and the assistance we have offered.
A community hospital was experiencing severe financial hardship
and increasingly negative operating results. After an analysis of
operations on a departmental basis and the development and application
of improvement techniques, Touche Ross projected reductions
in overhead, fixed-cost levels and operating costs. Twelve per
cent savings under previous expense budgets, and sounder operations,
would mean an operational turn-around for this institution.
In the southwestern United States, our firm was engaged to plan
the integration on a single campus of four agencies in different
locations, which provided mental health care, educational services,
a workshop, and some housing for retarded children and adults.
We developed plans for centralized intake and referral, service delivery,
training programs, research, public information, food service,
maintenance, and transportation: also land-use and site plans.
Reporting requirements were also defined, and applications drafted
for federal and state grants.
After analyzing all medical and financial operations of a 1,000-bed
general hospital, our firm designed two automated systems. The
computerized billing and accounts receivable system consolidates
all data on charges, payments, and professional fees. It prorates
bills and prints them automatically on discharge, also billing Medicare,
Medicaid, or other third parties, and prepares reports on
accounting and collection records. The financial planning and
management reporting system provides information for cost and
revenue accounting by responsibility centers, analyzes costs, plans
earnings, identifies management problems, and supplies all needed