Alameda Hospital Reports Improved Financial Performance After Hiring Turn-Around Consultants
Alameda Hospital has reduced its estimated budget deficit by more than half since the Alameda Health Care District in May 2004 hired El Cerrito-based consulting firm Delta One Partners, the Contra Costa Times reports. In July 2004, the hospital board, which approved a $202 million budget, instructed administrators to reduce a projected $1.2 million deficit to $668,000.
Hospital trustee Kevin Farrell said, "We're beating the budget by $64,000 and expect that to continue (to year's end)."
Although the hospital still faces a budget deficit, Stu Jed of Delta One said the hospital would become profitable in a couple of years.
According to the Times, the hospital's improved financial performance can be attributed partly to:
- Renegotiating some managed care contracts;
- Bringing housekeeping and dietary services in-house;
- Laying off the former CEO and CFO; and
- Replacing higher-paid registered nurses in some patient care areas with licensed vocational nurses.
In addition, Delta One has restructured the financial statements used by Alameda Hospital and worked to reduce the backlog of accounts receivable. Richard Fallon of Delta One said that the group has increased use of the hospital's information technology system.
According to Farrell, "We're looking to see Alameda Hospital become a clearly differentiated alternative to the large hospitals in Oakland. ... We're going to continue being an acute care hospital, taking care of broken arms, broken hips, heart attacks, pneumonias, the basic diseases that probably account for 85% of health care" (Fuller, Contra Costa Times, 1/28). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.