CHARLESTON, W.Va. — Weeks after Thomas Health System’s plan for exiting Chapter 11 bankruptcy received approval, health organization President and CEO Dan Lauffer said health care facilities are going to have to think “outside of the box” about generating revenue.
“We may have to enter some businesses we have traditionally not been apart of,” he said last week on “MetroNews Talkline.”
“Maybe we have to franchise our stores to be able to have revenue coming from other Medicare, Medicaid or PEIA (holders).”
Thomas Health System operates Thomas Memorial Hospital, in South Charleston, Saint Francis Hospital, in Charleston and THS Physician Partners Inc. The organization began seeking protection from long-term debt in January.
Lauffer said one problem hospitals are facing is the age of the health organization’s clients, noting the correlation between an older population and higher medical expenses.
“It costs more to care for patients these days just because of our ability to provide them longevity and quality care,” he said.
Lauffer added there also has to be a systematic change in health care payments as well as more efforts to attract companies
“We certainly want to work with governmental payers to see if there’s a way to improve our revenue cycle and improve our bottom line,” he said. “We’re going to have to certainly watch our supply expenses and capital improvements, but this goes along with economic development.”
Thomas Health System previously announced financing related to the bankruptcy filing will be completed by mid-September.