We Know Trauma Center Financing

Trauma finance is a crucial aspect of sustaining and enhancing trauma care. It involves securing funding for trauma centers, managing costs, and optimizing resource allocation to ensure high-quality patient care. B+A is a known leader in trauma financing and optimization. We apply our state-of-the-art approach to trauma center financing to work through known complexities, including: managed care contract carve-outs, trauma activation fees for trauma patients, a focus on cost management using national/state trauma center benchmarks, and a reporting method that assures an ongoing focus on key financial factors unique to trauma care.

To maintain a viable trauma program, all trauma center costs must be covered by revenue on an ongoing basis. Such costs include “readiness costs” that accrue by virtue of having a trauma program and meeting strict requirements for that program. These costs largely fall into three areas: trauma center administrative staff, medical staffing and call costs, and stand-by resources (e.g., 24/7 operating room, blood bank, radiology). Over the years, our clients have told us our consultation fee readily pays for itself as we help your hospital find hidden value and recommend steps to enhance the long-term sustainability of your trauma center.

Components of the Project

The components of a typical financial assessment project may include the following:

• Analysis of the trauma market to understand your hospital’s trauma volumes, severity of injury, and payer mix.

• Review of current trauma center financial performance in terms of expenses, revenue, and reimbursement.

• Assessment and projection of trauma center incremental/total patient revenue by payer class.

• Assistance in navigating complex reimbursement systems, including payor contracting and Medicare/Medicaid policies, to ensure trauma centers receive appropriate compensation for services provided.

• Gap analysis for state and national trauma center standards, along with appropriate cost estimates for trauma “readiness costs,” including program support, trauma medical staff support, 24/7 department availability, and capital/facilities.

• Preparation of an easy-to-use pro forma and financial plan for the trauma center that can be modified by your team as circumstances and costs change.

• Assessment of a potential “halo effect” on the hospital that can compensate for the additional costs associated with the trauma center.

Optimizing the Trauma Center Bottom Line

The financial burden of uninsured patients is unfortunately a major challenge in trauma care finance. On the flip side, trauma centers also can attract a relatively high volume of privately insured patients, which provides a major opportunity for financial optimization. In our work across the nation, we have found the typical trauma center can improve its bottom line by following several key financial strategies:

• Appropriate implementation of trauma response charges (68X activation, 208 ICU room, etc.). (See Trauma Charge Assessment)

• Negotiation of managed care carve-outs for patients meeting trauma center criteria.

• Effective implementation of a trauma-specific revenue cycle.

• Creation of a Geriatric Fracture Program to improve patient outcomes and decrease costs, especially for Medicare patients.

• Strategies for managing expensive trauma readiness and medical staff support costs.

• Partnership with the surgeon group to maximize trauma professional billing fees.

• Facilitation of hospitals working with their larger hospital system to maximize and standardize trauma costs and reimbursement.

B+A will use a variety of data sources to compare your trauma center to national norms and to collaboratively define workable strategies for financial optimization. We excel at taking complex financial information and presenting it in a simple and digestible way that makes sense to hospital administrative officers and aids in hospital decision-making.

We’ve Got Your Back for the Long Term

The last few years of healthcare have been turbulent and damaging to hospital finances. As circumstances change, our financial model deliverable allows you to modify assumptions to determine how changes affect the bottom line. B+A also provides strong support to former clients. Our clients will tell you they feel supported by us if needed. We stand by our work.