Several factors drive the necessity for new facilities and equipment in the healthcare space. Building age and functionality, advances in technology, and competition for patients and employees are some of the reasons that health system administrators must find ways to continue to fund new projects in a tough market environment. Whether the new spaces are in the form of expansion, renovation or new construction, creative approaches to funding are vital to ensuring sustainable and successful projects. This track will explore the demands that healthcare systems are facing when it comes to funding growth and revitalization. Discussion will include potential alternatives to traditional capital resources, the importance and benefits of evidence-based decision making, and why budgets should reflect first costs but also Total Cost of Ownership (TCO).
A listing of the sessions in the 2018 ACE Fund Track is below. All sessions will be held on Monday, February 19.
|Monday, February 19, 2018|
|Fund Track: Evidence-based Capital Planning Processes||1:00 PM - 2:15 PM||Augusta 2 & 3, 7th Floor||
Timely and collaborative capital planning is key for health system leaders and boards of directors to make necessary and often difficult capital resource acquisition and allocation choices. The American healthcare landscape has undergone enormous change in the last several years, and many systems are rethinking their capital planning process. One constant is the growing focus on value-based care. Hospitals and health systems are under tremendous pressure to improve patient care with an eye toward cost-efficiency. Making a decision to invest in the newest health technology or capital equipment in this environment is challenging, given the need to ensure better patient and financial outcomes. Evidence-based decision-making provides critical insights into whether a health technology has proven benefit, for which patient population, and how the new technology compares with existing and competing alternatives.
Reinventing the capital planning process requires an in-depth examination of a number of factors that affect the organization’s capital resources. This session will compare and contrast the importance of prioritizing all capital spending decisions, taking into consideration both short-term needs and longer-term strategic objectives. Hear about methods of determining the right amount of investment in capital projects to support growth and effective delivery of care. The focus will also include techniques to objectively evaluate and compare each capital request, as they often lack consistency. Improved processes include prioritizing and objectively ranking capital requests, regular monitoring of progress, and providing visibility into approved capital projects, including variance against capital budget.
Part two of this session will delve into the newest trends in evidence-based capital planning processes. Discussion will center around the importance of clinical evidence, including the definition of higher-quality evidence and common threats that may bias clinical data. Hear from a Facilities Manager who will share how the northwest region of Kaiser used data from systems to increase the capital budget to ten times its original. Identifying systems that were member facing resulted in the creation of a refresh program that updated all buildings on a regular schedule.
|Fund Track: So Much Construction, So Much Patient Demand, So Little Money||2:30 PM - 3:45 PM||Augusta 2 & 3, 7th Floor||
Healthcare providers are under increased pressure to reduce costs while meeting the needs and expectations of the consumer. Consumers want convenient locations, quick turnaround times, low costs, and expect modern and comfortable surroundings. More and more systems are looking to build or expand in order to meet these needs and stay competitive, but increasing demands for capital are limiting funding for facility projects. Proper allocation of capital is necessary to achieve an organization’s strategic goals. Objective prioritization is essential for assessing the best use of capital, including identifying “value” to the organization.
In this session, learn how to use objective-based capital planning to achieve strategic goals and objectives. The presenter will delve into important considerations, including the importance of realistically presenting and examining all risks, opportunities, and eventualities. Discussion will include methods of ensuring that your organization can ensure that it has adequate re-capitalization to extend the life of existing facilities, as well as plan for future new construction.
|Fund Track: Funding New Healthcare Opportunities||4:00 PM - 5:15 PM||Augusta 2 & 3, 7th Floor||
Healthcare delivery is complex and evolving rapidly. Transformative ideas and strategies are vital if providers are to continue to improve quality of care and provide better outcomes in the future, but funding pressures are always an issue. The shortage of doctors and nurses, coupled with increased demand and expectation from patients, technological advances that push up costs, changes in reimbursements, an aging population, and the increase in chronic diseases, all provide obstacles to new healthcare opportunities. Healthcare leaders must explore options for expansion and acquisition carefully as they plan for the future. Many systems are also turning to alternative approaches to funding and organization in order to positively impact the future of care.
One option on the rise is the opportunity for a joint venture partnership between physicians and surgical facilities. When forming a partnership to joint venture a surgical facility such as an ambulatory surgery center or surgical hospital, there are many key elements to consider. What are the legislative restrictions on the development and ownership of physicians in an ASC or Hospital? Should the partnership include an equity partner and/or management company? Should the venture include a health system partner and at what equity level? What considerations should be given to the structure of the governing board to accommodate the different classes of owners? These questions and more will be answered during this presentation. A case study of a unique partnership that includes physicians, two health systems, and a management company will also be explored.