Page 5 - BusinessWest October 28, 2024

The BEST Residential HVAC Team in the Industry
With years of experience under our belt, your home’s needs are in capable hands. Ours.
• Indoor Air Quality • Heating & Cooling
Systems
• Plumbing Services
westernmassheatingcooling.com • 413-268-7777
Peter Banko says he arrived at Baystate fully understanding the challenges facing the health system.
Staff Photo
The statement was issued in an effort to be transparent about the system’s current fiscal situation and the plan in place to return it to sound financial health, and also prepare the ground for steps that may come next, including workforce reductions, said Banko, who arrived in Springfield in June, fully aware of exactly what he was get- ting himself into.
He elaborated on its various points in a recent round of inter- views with media outlets from across the state, including one with BusinessWest, during which he noted that Baystate is suffer- ing from the same affliction as most all other healthcare providers in these post-pandemic years — a situation
where revenues are simply not keeping pace with expenses — and will have to make some hard decisions, and many of them, to get back on track.
“We have a clear path, and we’re work- ing on implementing it; it’s a two-year plan
to improve our core operations by more than $225 million,” said Banko, noting that the basic playbook in this case, as it does with any struggling business in any sector, calls for growing revenues and reducing expenses, efforts carried out simultaneously.
“We have an aging population, so more than 70% of our patient base is Medicare and Medicaid, and we know neither of those cover their costs.”
CELEBRATE THE 2024 SUPER 60 AWARD WINNERS
NOVEMBER 8TH | 11:00– 2:00 PM MASSMUTUAL CENTER
Join us in recognizing the remarkable achievements of local businesses and nonprofits at this year’s Super 60 Awards! Don’t miss the chance to celebrate, network, and hear from our keynote speaker.
REGISTER TODAY
KEYNOTE SPEAKER
Tania Barber
CEO
Caring Health Center, Inc.
www.springfieldregionalchamber.com
“We’re leaving no stone unturned,” he went
on, noting that the system has already taken
several steps, including the termination of its
defined-benefit pension plan, sale of its laboratory to Labcorp, and the pending sale of Health New England to Point32Health, a move that will “remove a distraction we don’t need right now” more than it will help the bottom line, he noted.
In the growing-revenues category, he said the system is engaging in a strategic-planning process, one involving the entire organization and community, and one that will define where the system wants to grow. Elaborating, he explained that the system is working on reve- nue-cycle management, especially billing-and-collection operation, “to make sure we’re collecting every dollar, no more, no less.”
Meanwhile, the system is also working on improving access to physicians as well as the larger issue of throughput — in the operat- ing room, endoscopy, heart and vascular, and more.
On the expense side, the system is looking to reduce corporate overhead, “things that don’t touch the bedside,” he said. “We’re look- ing at external spends — supplies, pharmacy, the must-haves versus nice-to-haves, what pens and paper we’re using.”
But obviously, the largest item on the expense side is work- force, Banko went on, adding that reductions are all but inevitable, although he could not say where they will come or how many.
“We’re still working on the plans and execution, and we will be transparent as we make those changes, both externally and internal-
BusinessWest
<< FEATURE >>
OCTOBER 28, 2024 5