YOUR BUSINESS AUTHORITY
Springfield, MO
YOUR BUSINESS AUTHORITY
Springfield, MO
Dear Springfield Business Leaders,
Before I became president of Mercy Springfield Communities, I was our COO, and a lot of my time was spent evaluating upcoming projects and the financial investments they require. In health care, that can include everything from building a new emergency department, which we kicked off last year and which will greatly improve patient access on the south side of Springfield, to spending millions on new medical equipment. Did you know even your average MRI machine can easily exceed $1 million?
If we needed to hire new physicians or nurses, replace faulty wheelchairs and patient beds or even tackle facility maintenance, those requests came across my desk. And while I’m sure every COO, CFO and CEO is painfully familiar with the aches and pains that come from balancing your budget in a way that protects you from rainy days while also planning for future growth, health care financial management comes with a different set of pain points.
For instance, Mercy repeatedly ranks as one of the most affordable health care providers in the state of Missouri, but it doesn’t matter what we charge for a surgery or a doctor’s visit. At the end of the day, the government decides what it will reimburse for patients on Medicare or Medicaid. We also made a commitment to the Sisters of Mercy that we would treat every patient who needs us no matter their ability to pay. As a result, we donated $27 million of free or discounted care to patients in this community in fiscal year 2023 alone. Even though health care profit margins are slim, we are committed to always supporting those who need us most.
Then there are other costs that can be hard to plan for. How do you know when it’s the right time to build a new cancer center or a new primary care clinic if your patient volumes are not quite maxed out, but that could easily change next year? Or how do you budget for a workforce that is constantly changing and growing. How do you manage your supply chain to ensure you have the necessary medications and supplies to meet patient needs without having unnecessary surplus?
One solution that has worked for us at Mercy, is standardization. Through the work of our physicians and leaders we determine which supplies, equipment, and new technology are necessary to provide the best patient outcomes.
Two leaders who serve on this team, our chief medical officer and our chief financial officer, talk more about how this standardization has helped us be better financial stewards in this issue of SBJ’s Economic Growth Series. I hope their insight and tips help you as well.
–John Myers, President, Mercy Springfield Communities
