Hospital Pricing Specialists

September 20, 2022

Dear Colleagues,

In an article published yesterday by our client, McKinsey & Company, they point to a "gathering storm" that has the potential to reorder the healthcare industry and put nearly half of the profit pools at risk.

Specifically, the article points to Labor costs growing 25% between 2019 and 2022, closely followed by Pharmaceuticals at +21%, and Supplies at +18% over the same period.  

Rising costs have had a significant impact on the bottom line.  For example, Beckers reported that the Cleveland Clinic lost $1Billion in the first half of 2022.

Now, more than ever, hospital leaders must benchmark their costs to redesign delivery services to be cost-competitive.  HPS has a cloud-based tool, CaseRateAnalyzer, that enables this critical benchmarking.  Watch the short video on our CRA tool and email me if you would like a free trial subscription:

Admin - Case Rate Analyzer (CRA) - 20 September 2022 - Watch Video

If you have any questions on the video, schedule a quick call on my calendar:    

Best Regards,

Rick Louie, Managing Director

Standing Offer:  If you're a C-Level hospital executive, HPS will provide a free market pricing report of up to 12 comparators.  Just ask.

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