Insight in financial situation as the basis for a hospital’s strategic choices
Nieuwegein, June 2020
How can hospitals improve their bargaining power in their negotiations with the Dutch health insurers? How can we talk about necessary changes in a hospital environment without sufficient information? How do we know if the strategic course that has been taken is the right one? How do we monitor this (financially)? These questions must sound familiar for CEO’s of Dutch hospitals, especially in these times in which the Coronavirus has made quite an impact on the healthcare sector. In our view, it is essential for hospitals to have adequate insight into their financial situation.
Together with the Centre for Organization Restructuring (part of the Radboud University), Beaufort researched the degree to which hospital CEO’s have insight into their hospital’s financial situation. Jan Janssen, partner at Beaufort Consulting, indicates: “In our practice we often see that CEO’s are perfectly capable of formulating a strategic view for the hospital, often (logically) based on healthcare related views and expectations. CEO’s are, however, not so much capable of assessing the financial impacts of (possible) choices. This is often a challenge for CEO’s.”
The results of the research performed by Beaufort and the Centre of Organization Restructuring are discussed in their recent publication titled: “ Wat is het geheim van een succesvolle strategie in de zorg?”, or in English: “What is the secret of a successful strategy in the healthcare sector?”. In this publication, the relationship between strategy(making), internal financial information, and an organization’s financial performance is investigated. Qualitative insights from interviews with 26 different hospital representatives are combined with a quantitative study based on 66 Dutch hospitals. Selected quotes give interesting insights into the minds of hospital CEO’s and managers. The publications concludes with recommendations by Beaufort with which Beaufort aims to assist the strategist in the healthcare sector.
A digital copy of the publication can be requested free of charge on Beaufort’s website.
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