Health & Hospitals System Update
At the County Board Meeting on September 16th,
the Cook County Health & Hospitals System (CCHHS) presented their proposed
FY2010 Budget. I was a chief architect in the creation of an independent governing body for CCHHS and remain a strong supporter of the CCHHS Board and their efforts to promote efficiency and
improve services in the County health system. The budget presentation
detailed these efforts and highlighted the many successes realized in the inaugural year of the independent health board. Key excerpts of the CCHHS presentation are
included below.
The full CCHHS Proposed Budget for FY2010 is available here.
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FY2009 Accomplishments
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In 2009, the crowning achievement of the CCHHS
Board was saving over $200 million of
taxpayer money as a result of revenue enhancements and increased
efficiencies in the Health and Hospitals System. These savings include:
-
$5 Million
in savings for due to entry into a Group Purchasing Organization (GPO). This amount only reflects savings realized in FY2009--annually,
the GPO will save the System $20 million.
- $35 Million
in improved cash collections due to improvements in the patient billing process. Historically, one of the major problems of
fiscal solvency at the Health & Hospitals System has been a low percentage
of collection on hospital bills. From
2008 to 2009, the rate of no-pay bills
has decreased from 55% to 49%, and that percentage will decrease further as
collection procedures continue to improve.
- $60 Million
in savings due to the elimination of 883
vacant positions--this is two-thirds of total vacancies.
- $134 million in
new revenue as a result of negotiations with the State of Illinois
for special federal funding for the support of patient care for the indigent
residents of Cook
County served by
CCHHS. This funding, called a
Disproportionate Share Hospital (DSH) payment, will continue annually, with a scheduled FY2010 payment of $150 million.
Additional accomplishments in 2009 include:
- Hiring of a permanent Chief Executive Officer, who has in turn hired a team of experienced healthcare leaders for the System.
- Consolidation of surgical services leading to increased access to care, which will in turn result in 1,700 more inpatient cases.
- Completion of Performance Improvement Assessment with Navigant Consulting.
- Partial implementation of a fully functional IT system in the areas of Finance, Contract Procurement, Payroll and Human Resources.
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FY2010 Proposed Budget
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For Fiscal Year 2010, there will be no decrease in the volume of current services--all realized savings will be the result of implemented efficiencies and new revenue.
The CCHHS 2010 Budget reflects a 19% reduction in the tax subsidy provided by the citizens of Cook County. This reduction is possible through a combination of increased revenue via improved cash collections and federal DSH payments as well as savings from our entry into a Group Purchasing Organization and the elimination of full-time positions.
In addition to the 883 vacant positions eliminated in FY2009, 467 filled positions will be eliminated in FY2010 through the implementation of staffing efficiencies identified through the performance improvement assessment. This is a total of 1350 full-time positions
eliminated in 2009-2010. |
FY2010 Goals
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- Recruitment and assimilation of the entire CCHHS leadership team
- Implementation of the Strategic Plan, to be announced this fall
- Achieve maximum savings through the Group Purchasing Organization (Estimated $20 million)
- Full implementation of the IT system
- Incorporation of financial targets identified in Navigant Consulting's performance improvement assessment report
- Expansion of programs and services, including: mammography screenings;
colonoscopies; the Screening, Brief Intervention and Referral to
Treatment (SBRIT) program; stroke programs; and student nursing.
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