At the Tipping Point Hospitals need fresh ideas to meet the challenges they face.
Technological and financial challenges confronting healthcare organizations could fundamentally alter how they do business - and how care is delivered. Addressing these challenges to benefit patients and staff requires executives to find new financial resources. Fortunately, many organizations may already have what they need. They just need a little help finding it.Download PDF Opens in new window
Financial resources hide inside every healthcare organization Prudential Retirement’s® DC Optimization℠ can help you unlock them.
Recently, healthcare organizations have been beset by a “perfect storm” of challenges.
Innovative technologies, new therapies, industry consolidation, disintermediation, talent shortages, revenue declines, and cost increases are putting tremendous pressure on the day-to-day demands of running a hospital.
The challenges are so great that only one in five hospital executives expect their business model to remain the same in the next three years. Of even greater concern, experts estimate half of all hospitals will no longer exist in ten years.1
Now for the good news. A solution may be closer than you think.
Facing such complexity, it may be difficult to imagine there could even be a solution. But for many healthcare organizations, at least part of the answer may already lie in their current retirement programs.
Prudential Retirement can help administrators refocus on strategic goals
How? Years of mergers and acquisitions have left many healthcare institutions with multiple legacy retirement plans, overlapping benefits and redundant costs. As a result, hospitals may be paying far more than necessary for plans created at a very different time, to meet very different needs. What’s more, these older plans may no longer be the best option for current employees.
Prudential Retirement can help. Over the last two decades, they’ve worked as a strategic partner showing dozens of healthcare organizations how to unlock and redeploy resources hidden in their retirement plans.
The key is Prudential’s DC OptimizationSM. DCO recently helped one hospital system consolidate 23 retirement programs into a single cost-effective plan. It showed another how to reduce annual employer contributions by $2 million. Countless other hospitals have seen similar results.
DCO. Helping DC plans work harder for your hospital.
With their actuarial expertise and deep data analytic capabilities, Prudential Retirement can assess and optimize every aspect of a retirement program. They then consult with management to consolidate and reengineer existing plans, designing new plans as needed. The goal: a smarter, stronger, more nimble retirement program that fits the needs of your organization today and in the years to come.
Scott Boyd, Prudential’s Head of Healthcare Solutions, described the process this way: “Designed correctly, a retirement program can help a hospital meet a number of strategic needs. So we first measure participation and effectiveness for every plan an organization has, which allows us to benchmark them against other hospitals. We then identify a hospital’s talent goals and align their retirement plans to match the hospital’s goals. Finally, consolidating multiple plans helps generate efficiencies.”
Getting back to what you do best.
By making retirement plans more cost-efficient, Prudential Retirement can help hospital administrators and executives refocus on business priorities and hospital strategic goals, including:
Attract top talent by steering dollars to sought-after employees.
Sunset aging workers on time with long-term retirement stability.
Reallocate resources to where they’re most needed.
Enhance retirement plan ROI by reducing administrative costs.
Secure better retirement outcomes for all employees.
In the end, a smarter and more agile retirement plan can help everyone in the organization get back to what matters most — improving patient outcomes. And that improves outcomes for everyone.
- The great consolidation: The potential for rapid consolidation of health systems, Deloitte Center for Health Solutions, 2014.