In an era where inflation challenges the healthcare industry, Charleston, W.Va.-based Vandalia Health is pioneering strategies to maintain financial health and service excellence.
The overall inflation rate year to date in 2024 is 3.3%, below their zenith of 7% in 2021, but higher than 1.9% in 2018 and 0.8% in 2014, according to the US Inflation Rate Calculator. In this environment, health system executives are focused on adding revenue, trimming waste and improving operating efficiencies.
"Revenue is key to everything," said David Goldberg, executive vice president and CEO of Vandalia Health's north region, during an episode of the "Becker's Healthcare Podcast." "Inflation is the enemy in healthcare. I can't just raise prices like a gas station or convenience store, on what we do. Our contracts with payers, Medicare and Medicaid are pretty solid. So we have to make sure we reduce cost, optimize processes, open up the front door and make sure we're accessible for our patients, we're cost effective, high service, high quality and differentiated."
Mr. Goldberg said patients typically choose Vandalia over others because of the strong physician programs. The health system is also looking for ways to optimize the revenue cycle and boost quality so the value to patients is front and center.
Hiring more staff members to support workflows can also lead to strong finances. West Virginia is a relatively small state, so the system needs a purposeful recruitment strategy to attract talent. Last year Vandalia's northern division hired more than 1,800 people and received an Appalachian Regional Commission grant to recruit unconventional workers, such as people recovering from addiction or those who haven't earned their GED.
"They're taking jobs we need like transporters," said Mr. Goldberg. "We put them in a rotation opportunities to be able to work in our kitchens, work on the floors and work in our clinics."
The harder jobs to recruit for, including radiation techs and nurses, Vandalia partnered with vocational schools and high schools to build out a talent pipeline. The health system is working with its second cohort of around 50 nursing and medical assistant students from West Virginia Junior College to work in the hospitals and clinics. The system also started a Boy Scout Explorer Club in the community to introduce healthcare jobs to students at a younger age.
"We're glad to say with the first quarter under our belt in 2024, we have very good results," Mr. Goldberg said. "We had a really profitable year in 2023. But more importantly, we've been recognized by our employees as a top employer in the state and most of our hospitals continue to get quality accolades by third parties. That's what matters."