Related Information

Capital Structure and Enterprise Risk

Risk is ever present in the capital markets.  Rather than avoiding risk, hospitals need an effective strategy to manage it.

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Learn about "Managing Risk Through a Global Capital Strategy

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Integrated Financial Planning

Given the high level of uncertainty and changes anticipated with healthcare reform, integrated financial planning is more important than ever.

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Learn about planning in a changing environment.

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Physician-Hospital Integration

Integrated physician-hospital arrangements, which align clinical and financial interests, will be critical to the success of hospitals and health systems under a value-driven care delivery and payment system.

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Learn “Six Essential Strategies for Successful Hospital-Physician Integration”

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Readiness & Repositioning

A new business model is emerging requiring transformational change by hospitals and health systems.

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What has Kaufman Hall learned about organizations' readiness for this change?

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Strategic Partnering

Whether or not your hospital, health system, or network is directly involved in planning or discussions at this time, industry consolidation will impact every organization.

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Learn about "Achieving a Good-Fit Partnership"

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Budgeting & Operations Control

Establishing a more engaged and collaborative relationship around performance metrics is key to delivering services at the desired cost and outcomes targets.

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Learn how Kaufman Hall's Budget Advisor can help

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Features

Are you ready for healthcare's new era? Kaufman Hall can help guide the way.

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News

Introducing the Enterprise Edition of Hospital Advisor®

Introducing the Enterprise Edition of Hospital Advisor®, designed to meet the comprehensive financial and capital planning needs of hospitals and health systems nationwide.

Fewer patient admissions a symptom of healthcare “transformation,” study says

A March 23, 2014 article in the Chicago Sun-Times discusses how various forces in healthcare, including the Affordable Care Act and efforts to better coordinate care, are contributing to declining inpatient utilization, according to a recent Kaufman Hall study of the Chicago-area hospital market.

Time for healthcare to change, let go of inpatient model

In a guest commentary in the March 15, 2014 issue of Modern Healthcare, Chair Ken Kaufman draws a parallel between hospitals or health systems failing to adapt to the changing healthcare industry, and Intel Corp.’s failure to adequately predict and keep pace with the rising prominence of mobile devices over personal computers.

Number of Hospital Transactions Grew in 2013 According to New Kaufman Hall Analysis

Hospital merger and acquisition activity in the U.S. continued to grow in 2013, according to a new analysis by Skokie, IL-based Kaufman Hall. In 2013, 98 hospital and health system combinations were announced, an increase of 3 percent over the previous year and 51 percent over 2010. The level of activity shows consolidation continuing to occur among not-for-profit hospitals and health systems as they position themselves for value-based payment and population health management.

Healthcare Industry Veteran Joins Kaufman Hall's Software Division

Healthcare industry veteran Dan Seargeant, DrPH, has joined Kaufman Hall’s Software Division, with a focus on expanding the firm’s product portfolio to address healthcare providers’ need for better costing systems as the industry continues to move toward value-based payment models.

Rightsizing Health Care for the New Era

In this April 10, 2014 commentary in H&HN Daily, Chair Kenneth Kaufman discusses the need for hospitals and health systems to lead efforts to reduce high spending by completely reassessing and reworking the nation’s outmoded healthcare system.

Medicare Release of Provider Payment Data: Four Preliminary Observations for Hospitals

The federal government’s April 9th release of Medicare provider payment data is a clear step toward increased visibility of variation in spending, utilization, and practice patterns throughout healthcare. Although these data focus at the physician level, hospitals also will receive attention from the government, media, and others. Scrutiny of physician payment for specific procedures and specialties that are perceived as outliers inevitably also will include hospital payment for related tests, outpatient care, and inpatient care, as well as attention to hospital utilization patterns generally. Kaufman Hall is focused on understanding the meaning of these data for hospitals, including the geographic variation in spending and utilization, factors that could be driving this variation, and implications for hospital strategy. Our initial review of the data leads to four observations that we will extend as our analysis continues.

Searching for Physician Leaders: Traits to Seek, Mistakes to Avoid

Senior Vice President Matthew J. Lambert III, M.D., is quoted in an April 4, 2014 article in Becker’s Hospital Review addressing the increasingly essential role of physician leaders in advancing hospitals’ and health systems’ strategic initiatives.

4 Ways Hospitals Can Adapt to Declining Inpatient Volumes

Becker’s Hospital Review published an article on March 12, 2014 discussing key considerations for hospitals and health systems in adapting to the new healthcare era, drawn from a recent Kaufman Hall research report on declining inpatient utilization in the Chicago region.

Visionary Healthcare Leaders Series, Interview No. 1 Ken Kaufman

On March 11, 2014, Forbes published the first in a series of articles on its website highlighting the insights of visionary healthcare leaders. Kaufman Hall Chair Kenneth Kaufman was the first executive to be interviewed.

The Decline of the Inpatient: 5 Observations

On March 11, 2014, Becker’s Hospital Review published an article discussing Kaufman Hall’s research into declining inpatient utilization in the seven-county Chicago region.

Barnabas Health Selects Kaufman Hall’s Software Tools

Barnabas Health, the largest integrated healthcare delivery system in New Jersey, has licensed Kaufman Hall’s Hospital Advisor® and Budget Advisor® software products to support financial decision making throughout the organization.

Anticipating the Impacts of Health Insurance Exchanges

The public health insurance exchanges and growth of private exchanges have the potential to significantly alter hospitals' and health systems' patient populations and payer mix, presenting challenges and opportunities related to revenue and market share. In this October hfm Blog article, Senior Vice President Charles Kim, Vice President Andrew Cohen, and Assistant Vice President Jason O’Riordan discuss the need for healthcare leaders to be proactive in conducting a thorough analysis of the potential impacts and developing an exchange strategy for their organization to address those changes.

Helping Individuals Obtain Health Coverage Under the ACA

Hospitals around the country will play a significant role in helping uninsured or underinsured individuals obtain health coverage in the new public health insurance exchanges. In this article in the October 2013 issue of hfm, authors Anne McLeod and Amber Kemp with the California Hospital Association, and Jody Hill-Mischel and Andrew Cohen with Kaufman Hall, present eight proven hospital-based outreach and enrollment strategies.

How Rolling Forecasting Facilitates Dynamic, Agile Planning

Many hospitals and health systems are seeking an alternative to the annual budgeting process that would allow them to respond more nimbly to shifting market forces. In the November issue of hfm Magazine, Debra Miller of Kaufman Hall, Michael Allen of Gunderson Health System, Stephanie Schnittger of Inova Health System, and Theresa Hackman of PinnacleHealth discuss Rolling Forecasting, which allows organizations to make more accurate operating projections, continuously identify financial performance gaps, and be agile in responding to changes.

Rolling Forecasting: A New Budgeting Strategy for More Effective Financial Management

Debra Miller, a Vice President with Kaufman Hall's Software team, discusses an alternative to the annual budgeting process that allows hospitals and health systems to make more accurate operating projections and be more agile in responding to changes.

Reducing Non-Labor Costs

Kevin Neuman, a Vice President with Kaufman Hall's Strategic Cost Management practice, discusses strategies for managing the costs of products and services that healthcare organizations use on a daily basis.

Building Sustainability Through Back-to-Basics Financial Planning

Hospitals and health systems nationwide face an ever-evolving set of challenges as they work to navigate the industry’s transition from volume-based sick care to value-based health care. In this article in the November HFMA CFO Forum, Managing Director Jason Sussman emphasizes the need for organizations to utilize traditional financial planning principles that quantify strategic initiatives and integrate accountability into the annual budget process.

Hospitals Redefining Keys to Success in a Changing Industry

To address the challenges of healthcare reform and the transition to a value-based system, many organizations are working to reduce costs, increase efficiencies, and revise the way they deliver care. In this November 2013 hfm Blog, Managing Director and Chief Executive Officer Therese L. Wareham discusses how hospitals, health systems, rating agencies, and other stakeholders are redefining what it takes to achieve long-term organizational sustainability in the new era of healthcare.

How Patient-Centered Productivity Measurement Reduces Costs

Hospitals and health systems seeking to reduce costs in preparation for the transition to a value-based care model should consider how productivity is measured within their organizations, and whether those metrics align with true drivers of cost. In the December issue of HFMA’s Cost Containment newsletter, Senior Vice President Brian Channon and Vice President Kristopher Goetz discuss the need for a patient-centric approach to measuring productivity to ensure sustainable cost reduction.

Keynotes at the 2013 Healthcare Leadership Conference

Kaufman Hall was pleased to have an esteemed group of keynote speakers at the Healthcare Leadership Conference in October. The Winter 2014 issue Kaufman Hall Report summarizes these presentations and the annual rating agency panel.

Rightsizing Your Regional Service Delivery System

A Senior Vice President in the firm's Strategy practice, Dr. Walter Morrissey describes the components of an effective regional plan for service delivery and how this approach can drive improved cost and quality outcomes.

Cost-per-Case Productivity Measures Improve Organizational Alignment

Rapid changes to the nation’s healthcare system and the transition to value-based care are causing many hospitals and health systems to reevaluate how they measure productivity. In this Jan. 3, 2014 hfm Blog article, Vice President Kristopher Goetz discusses the need to shift from traditional productivity metrics that focus on the quantity of services provided to systems that create incentives to promote quality care.

Externalities Turn Negative for Healthcare Providers

January 23, 2014 - For many years, economic externalities—such as the fee-for-service payment structure and a robust economy—positively impacted healthcare providers. General healthcare spending increased year after year, often by significant percentages. Prices rose as well, furnishing providers with significant annual increases in revenue, sometimes even in the face of declining or flat demand for services. This constant external support for revenue meant that providers could often be generous from an operations perspective, allowing costs to rise each year, without weakening margins. But, now the economic externalities that have positively affected providers have recently and dramatically turned negative.

Structuring Effective Physician Compensation Programs

Luke Sullivan, a Vice President with Kaufman Hall's Physician Services team, discusses strategies for developing an optimal physician compensation program and what metrics should be used to gauge productivity and effectiveness.

Where Have All the Inpatients Gone? A Regional Study With National Implications

Various stakeholders, ranging from private employers and consumers to providers and payers, are working to reshape the nation’s healthcare delivery system while improving quality, outcomes, and patient access. A Kaufman Hall analysis of comprehensive inpatient and outpatient data from the greater Chicago area provides early evidence that these efforts are having an impact in moving the transformation agenda forward. In this February 2014 Point of View letter, Senior Vice President Robert W. York, Chair Kenneth Kaufman, and Managing Director Mark E. Grube share the study results and discuss their broader implications.

Connecting the Dots

February 13, 2014 - Alan Blinder, Professor of Economics and Public Affairs at Princeton University, has written a compelling book entitled After the Music Stopped: The Financial Crisis, the Response, and the Work Ahead. The book adds significantly to the analysis of the mortgage crisis of 2007 and the subsequent recession of 2008. Toward the end of the book, Professor Blinder focuses on a Congressional Budget Office chart. Reproduced here, the chart looks at federal revenue and spending projections as a percentage of gross domestic product from 2010 through 2090. Understanding this chart is critical.

Evaluating Businesses and Services for Strategic and Financial Alignment

Hospitals and health systems looking to build competencies for the new healthcare era should objectively assess their role in their communities and rethink which services they provide and how, where, and to whom they provide them. In this article in the February 2014 issue of HFMA’s Cost Containment newsletter, Managing Director Kit Kamholz discusses the need for organizations to undertake a comprehensive, analytical process to evaluate all of their businesses and services with the aim of maximizing efficiencies while ensuring alignment with core organizational goals.

Funding the Transformation

Rapid changes in the way healthcare is delivered and paid for are causing many hospitals and health systems to reevaluate their financial strength and long-term sustainability. In this article in the February issue of Trustee magazine, Chief Executive Officer and Managing Director Therese Wareham discusses three essential financial considerations that will shape how well organizations adapt to the new business model.

Independent Partners

An increasing number of hospitals and health systems are entering into partnerships that do not require a change of control. This article in the February 2014 issue of Trustee magazine discusses the legal implications of these "noncontrol transactions." Senior Vice President Patrick Allen co-authored the piece with John Callahan and Stephen Wu of McDermott Will & Emery.

A Strategic Approach to Facilities Provides a Path to Increased Efficiency

Decades focused on increasing bed counts have left many hospitals and health systems with an outsized service distribution system. In this article in the March 2014 issue of HFMA’s CFO Forum, Vice President Jim Medendorp and Senior Vice President Charles Kim address the need for healthcare leaders to take a comprehensive approach to evaluating and planning facilities.

What Healthcare Providers Should Learn from Intel

March 24, 2014 - For years, Intel has been one of the most admired companies in America. Its market cap is $121 billion, Its chips are in 80 percent of PCs. It has total dominance over a critical vertical market. But there’s a problem: the glory days of the PC are over. Sales have been declining, with the 10 percent decrease in 2013 the worst drop yet. In contrast, smartphone and tablet sales increased 42 percent and 68 percent respectively in 2013. And Intel’s mobile-device market share is a small fraction of its PC market share. How could this happen? How could a dominant firm with a history of strong leadership and market savvy so completely miss a seismic shift in the market? The comparison to healthcare is stark.

Changes in Employer-Sponsored Insurance Could Dramatically Alter Hospital Business Fundamentals

Hospitals and health systems nationwide will be challenged by significant changes occurring in the employer-sponsored insurance market. In the Spring 2014 issue of Kaufman Hall Report, Chair Ken Kaufman and Managing Director Mark Grube describe three key trends in this area and advise healthcare executive teams and boards on why they should be alert to the implications for their organizations.

Using Financial Planning to Build and Test a Performance-Based Strategic Portfolio

Hospitals and health systems nationwide need a robust financial planning process more than ever to help them navigate the changing healthcare system. In the April issue of HFMA’s Cost Containment newsletter, Senior Vice President Brian Kelly and Managing Director Jason Sussman discuss how financial planning provides a platform for testing the impacts of various organizational initiatives in order to ensure a sustainable strategic financial plan.

Can Your Hospital Improve its Revenue Cycle?

Hospitals and health systems have the potential to improve their revenues as much as 3 percent to 5 percent through revenue cycle management. Kimberly Neese, a Senior Vice President in Kaufman Hall’s Strategic Cost Management practice, discusses the increasing importance of such initiatives for organizations seeking to manage costs and maximize revenues in preparation for healthcare’s changing business model.

Allocating Healthcare Capital in the Reform Environment

The transition to a value-based business model requires significant investments by hospitals and health systems. Jason Sussman, a Managing Director and leader of the firm’s Financial and Capital Planning practices, discusses the need for organizations to rethink how they allocate capital in light of shifting strategic priorities.

Rightsizing Healthcare for a New Era

April 17, 2014 - The rising cost of healthcare continues to threaten our nation’s financial stability. Despite recent slowing in the rate of growth, healthcare spending still stands at 17.4 percent of GDP—48 percent greater than that of the next highest spending developed country. And healthcare spending will be 19.8 percent of GDP by 2020, and 22 percent of GDP by 2038, according to government forecasts. This level of spending is undermining the economy today and is even more ominous for the future. As healthcare spending continues to grow, society will face increasingly unpalatable choices, including further increases in consumers’ out-of-pocket expenses and continued cutbacks in government spending for core services.

Transparency Goes Public

In this April 17, 2014 hfm Blog article, Vice Presidents Andrew Cohen and Jason O’Riordan discuss Castlight Health's initial public offering to demonstrate the increasing adoption of healthcare cost and quality transparency tools. Hospital and health system leaders should be alert to this trend and consider the implications for their organizations.


Events

American Health Lawyer Association Health Care Transactions Conference

Managing Director Jody Hill-Mischel will participate in a panel discussion of "Financing Capital Expenditures and Strategic Affiliations: Current Trends and Considerations".

The Healthcare Roundtable Patient Care Executives and Human Resource Executives Group

Mark Grube, a Kaufman Hall Managing Director and leader of the firm's Strategy practice, will present "Healthcare Reform Update and National Overview".

HFMA Georgia Chapter Spring Institute

Senior Vice President Brian Kelly will present "The Transformation of America's Hospitals".

DMS Pharmaceuticals Group Health Leaders Luncheon

Kit Kamholz, a Kaufman Hall Managing Director and leader of the firm's Mergers, Acquisitions, and Partnerships practice, will present "Strategic Options for Hospitals in a Consolidating Industry".

DMS Pharmaceuticals Group Health Leaders Luncheon

Senior Vice President Dawn Samaris is presenting "Quantifying the Impact of Payment and Care Delivery Changes on Your Organization".

HFMA Arkansas Chapter Spring Conference

Debra Miller, a Vice President with Kaufman Hall's Software Division, will present "Rolling Forecasting: A Budgeting Strategy for Effective Financial Management".

The Governance Institute Leadership Conference

Senior Vice President Charles Kim is leading a special session on "Navigating the Gap between Volume and Value: Assessing the Financial Impact of Proposed Initiatives and Reform-related Changes".

The Governance Institute Leadership Conference

Ken Kaufman, Chair of Kaufman Hall, is presenting "Healthcare: Inflection 2.0" and "Problem Solving in the Reform Era".

HFMA Nebraska Mid-Year Meeting

Vice President Deborah Pike is presenting "The Transformation of America's Hospitals".

The Governance Institute Chair, CEO, and Physician Leader Conference

Mark Grube, a Kaufman Hall Managing Director and leader of the firm's Strategy practice, is presenting "Exploring Next-Generation Partnerships".

Pennsylvania Institute of CPAs Health Care Conference

Andy Majka, a Kaufman Hall Managing Director and the firm's Chief Operating Officer, will co-present "Capital Markets Update: Acute Care".

The Governance Institute Chair, CEO, and Physician Leader Conference

Senior Vice President Anu Singh is leading a roundtable discussion of "Next-Generation Partnerships".

HFMA Annual National Institute

Andrew Cohen, Rob York, and Walter Morrissey, M.D., senior members of Kaufman Hall's Strategy Practice, will present "Achieving Sustainable Population Health Management".

HFMA Annual National Institute

Kit Kamholz, a Kaufman Hall Managing Director and leader of the firm's Mergers, Acquisitions, and Partnerships Practice, and Patrick Allen, a Senior Vice President with the firm's Mergers, Acquisitions, and Partnerships Practice, will present "How Affiliations Can Strengthen Organizations in the New Healthcare Era".

Infocast California Healthcare Transactions Summit

Senior Vice President Patrick Allen is participating in the panel discussion "The Changing Landscape of Hospital and Health System M&A in California".

AHA/Health Forum Leadership Summit

Patrick Allen, a Senior Vice President with Kaufman Hall's Mergers, Acquisitions, and Partnerships practice, and John Poziemski, a Vice President with Kaufman Hall's Strategy practice, are co-presenting "Creative Affiliations for Success in the New Era".

The Governance Institute Leadership Conference

Ken Kaufman, Chair of Kaufman Hall, is presenting "Healthcare: Inflection 2.0" and "Problem Solving in the Reform Era".


WELCOME TO KAUFMAN HALL

  

At Kaufman Hall, we believe that sustained success is never an accident. It is the result of sound decision-making, based on data-driven analysis and disciplined thinking, guided by the fundamental principles of corporate finance.

Since 1985, Kaufman Hall has been a leading advisor to hospitals and health systems, helping them incorporate these proven methods into their strategic and financial management processes and consistently achieve outstanding results.

We provide the expert advice and best practice-driven tools needed to succeed in a rapidly changing industry.