I still keep reading that Healthcare bad debts and charity care are rising due to our country’s economic status and the continuous increase in unemployment.  I believe hospitals have tried to cut costs especially in the area of reducing staff, another topic I keep reading about.  I also see that hospitals keep expanding as well as increasing the services they provide.  As a result, I began wondering when will hospitals stop trying to be all things to all people by providing everything they can to patients in hopes of attracting new patients and increasing their revenues?  I personally feel that it is about time hospitals begin to take a look at their core services or the services that give them the biggest bang for the buck then focus on providing only these services and forget about providing other services that are not profitable.  We all see this in other businesses.  For example, if we need an appliance we go to an appliance store, if we need clothing we go to a clothing store, if we need groceries we go to a grocery store.  I think we all get the idea.  Now I am sure all of you are saying well what about Walmart, they provide clothing, groceries even some appliances, and I will admit they do.  But Walmart understands merchandising and knows what products they can and can’t sell profitably a concept hospitals have not yet been able to grasp because they, in my opinion, do not have the tools to evaluate profitability on a service line basis.  This is exactly what I am preaching: hospitals have to start analyzing what services they do best at a lower competitive price, use this as a starting point and stop trying to be a Walmart with no clue as to what is profitable and what isn’t.

-Bruce Jacobs
Director, Financial Management Services