Overhead Costs and Healthcare Failures: 4 Lessons from Walmart Health

2 weeks ago

Walmart Health is shutting down: The fall of a giant

Five years after opening, Walmart Health has decided to shut down its 51 Walmart Health centers across five states.

Just a few weeks ago, the store had announced plans to open 18 Walmart Health Clinic in Texas this year, adding to the state's four existing locations.

Walmart Health news came as a shock to the healthcare industry, as Walmart had impressive growth in the starting years but healthcare complexity has put a dent in the big-box retailer.

What went wrong?

The $648 billion company is struggling with escalating overhead costs and regulations that made the business unsustainable. 

Overhead Expenses: Nightmare for Healthcare Organisation

The United States has the most expensive healthcare system. 

According to Centers for Medicare and Medicaid Services, healthcare spending reached $4.3 trillion in 2021 and it will expand further by $6.8 trillion by 2030.

The U.S. is not the only country, everywhere is the same situation.

But why is healthcare spending so high?

Hospitals are charging a significant cost to cover their overhead expenses which are a large portion of total operating costs.

Balancing quality patient care with a hospital's financial sustainability is a constant battle for decision-makers. 

Overhead Costs in Small Hospitals and Clinics 

Walmart's story is a cautionary tale for every healthcare organization, especially for small hospitals and clinics.

Small enterprises struggle with managing their overhead costs. A large part of their earnings went to operating costs. 

As patient inflow increases, it becomes even more difficult.

Their traditional way of managing facilities, outdated technology and lack of resources are the primary concerns.

There is a constant need to streamline their workflow. It will help them to increase their productivity and reduce the cost.

4 Lessons from Walmart Health's Closure

Let's dive into the juicy details of why Walmart closed Walmart medical clinics.

1. The Burden of Overhead Costs

Walmart tried the large-scale approach which didn't turn out well. Hiring more than required and unnecessary operation costs worsened the situation further. 

This is also a common problem for most organizations especially, big corporations.

2. Scalability and Efficiency

Clinic workflow has a complex structure. It leads to poor productivity and waste of resources.

There is a need for flexible solutions which ease the complex system and also meet the evolving future needs.

3. Updated Technology

Medical facilities should incorporate IT solutions to optimize their workflow. 

Through healthcare-oriented software and technology, they can simplify their operations. 

Through an online portal, hospitals can manage staffing needs and bring cost efficiency.

4. Building a Winning Strategy

Here we can help.

SyS Creations is an Ontario-based healthcare-focused IT company. We develop innovative healthcare IT solutions designed as per your facility workflow, present requirements, and future growth.

Indigenously designed Hospital Management Software by SyS Creations empowers organizations to automate administrative tasks and billing. 

It provides valuable insights about your hospital operation that helps to boost revenue and reduce cost.

What is Hospital Management Software (HMS)?

A software system designed to manage appointments, billing, lab, stock and inventory, pharmacy and more. 

It streamlines the entire workflow and helps you to capture the real-time information in one click.

It increases productivity by saving paperwork and documentation time.

How Hospital Management Software Cuts Overhead Costs

Let's delve into the key features and advantages of hospital management software and how it reduces the operational cost of your hospital.

1. Streamlining Administrative Tasks

Appointment scheduling, billing, and claims processing are some routine tasks, and HMS automate such manual tasks.

Automation eliminates the need for manual work and minimizes errors, resulting in cost savings.

2. Optimizing Revenue Cycle Management

Payment of timely and accurate payments for services is a challenging task for every hospital. There is a need for effective revenue cycle management.

Hospital Management Software can manage billing and claims. Its intelligent operating system reduces insurance denials and increases cash flow.

3. Finance Management

Billing is an essential aspect of a business entity. HMS can streamline the billing process and reduce errors. 

HMS saves you from costly rework in case of error and payment denials.

4. Improve Patient Engagement

Telemedicine integrated with HMS allows patients to book online appointments with doctors. Through this technology, patients can easily access the hospital services.

Through Telehealth/Telemedicine, hospitals can reduce costly readmissions.

5. Resources Optimization

HMS provides real-time data insights into resource utilization. 

Through that data analysis, you can improve staffing levels and reduce unnecessary tests or procedures.

This also helps you to expand services your customers like more.

6. Inventory Management

Hospital Management Software tracks medical supplies, equipment, and pharmaceuticals in real time.

It provides visibility into current stocks and usage patterns. HMS monitors medical supplies’ end dates, automates replenishment and prevents stock shortage and overstocking.

7. Telemedicine/Telehealth

Telemedicine/Telehealth integrated with HMS expand the reach of providers. Now, doctors can offer services to remote areas and make a strong customer base. 

In case of a high inflow of patients, he can shift some of them to virtual care which reduces the need for physical infrastructure.

8. Compliance and Risk Management

Maintaining compliance with HIPAA & other healthcare regulations is a crucial thing. Any avoidance or error can lead to a heavy fine. 

HMS automates the compliance test & reporting and makes sure your hospital follows all the compliance.

In this Financially Challenging Healthcare Environment, Are You Looking for a Savior? Let SyS Creations Save You.

As overhead costs continue to inflate, the importance of adopting innovative solutions like hospital management software cannot be overstated.

So whether you run a small clinic or a large hospital, we build scalable software that boosts your ability to deliver quality healthcare services.

SyS Creations houses 50+ specialists you may need to get your hospital management software from scratch – from business analytics and UX/UI designers to quality assurance.

The best part:

We have been solely working in the healthcare industry delivering focused IT solutions for the past 10+ years. 

It empowers us to build the finest solution after a comprehensive and detailed view across cost, quality, and service line measures. 

Don't delay!

Invest in your hospital's future, and connect with SyS Creations.