Renton, Wash.-based Providence, a 51-hospital system, has launched a series of "recover and renew initiatives" to strengthen its core operations and ensure near-term sustainability while delivering on its Destination Health 2025 strategy.
According to recently filed financial documents, management has deployed "multiple recovery programs" to address various challenges. The plan is broken up into five key areas:
1. Surgical volumes: Providence is using artificial intelligence tools to address pent-up demand for surgical and chronic care. AI tools are helping to more accurately predict and schedule operating usage, creating more access to needed surgical care.
2. Patient progression: Providence is managing length of stay to ensure patients receive needed care by addressing challenges to discharge patients due to staff shortages in the post-acute care setting. "We are making strides to address the issue through a variety of community partnerships, multidisciplinary discharge planning, patient progression and capacity improvement programs," the health system said.
3. Cash acceleration: Accounts receivable have been negatively impacted by labor shortages, reimbursement delays from payers, technology transitions and other macroeconomic factors. Providence has deployed various initiatives to reduce payment friction in payments with the broader payer community and is evaluating options for underutilized administrative real estate as large portions of its support services move to hybrid or virtual work.
4. Workforce: The use of premium labor, including the number and wage rate of agency nurses, continues to be significantly higher than in previous years. Several initiatives are underway to reduce those expenses in combination with increasing core productivity.
5. Discretionary spend management: Providence is taking various steps to improve its operating performance and liquidity, including reevaluating capital projects outside of those focused on patient and caregiver safety. "We have also reduced discretionary spending including travel, use of third-party contractors, purchased services, and professional services. As demand returns, we are flexing our labor and supply resources to allow us to efficiently and safely provide the services required by our patients," according to the health system.