UAMS Chancellor Dan Rahn Attacks Red Ink With Balanced Budget Plan

by Mark Friedman  on Monday, Feb. 17, 2014 12:00 am  

UAMS Chancellor Dr. Dan Rahn said he has a plan to slash expenses and increase revenue that should generate $40 million for the campus during the next 18 months. (Photo by Jason Burt)

When Epic goes live, it will generate a single bill for UAMS patients, which will be better for them and for UAMS, Rahn said. With the various billing systems now, some procedures aren’t properly recorded and don’t get billed, he said.

“We think there’s been a certain amount of leakage by being on different billing systems,” he said.

He said he hopes that, by capturing more billable procedures, the system will generate another 1 to 2 percent in revenue, the increases that other health systems have seen after implementing similar systems.

Another target, Rahn said, will be a push toward more clinical trials. UAMS received $889,061 in the first six months of the current fiscal year, a decrease of 68.3 percent from the same period a year ago.

Funding for clinical trials mainly comes from the NIH and private industry, Taylor said.

In addition to the cuts from the NIH, “the overall economic slowdown that the country has been experiencing, we believe, has resulted in reduced support from private industry for clinical trials,” Taylor said in her email.

Expense Savings

In addition to the new revenue, UAMS plans to continue to take a knife to expenses.

Four years ago, UAMS hired Navigant Consulting Inc. of Chicago, to comb through UAMS’ revenue and expenses to improve the bottom line.

Rahn said Navigant’s suggestions for cutting expenses and improving revenue have resulted in $62 million in financial improvements for UAMS. Another $18 million in combined expense reduction and new revenue is projected to come through a variety of projects, including the supplies UAMS buys and how it manages its nurses’ schedules at its hospital, Rahn said.

“We did a lot of work on purchasing contracts,” he said.

Bowes, the CFO, said UAMS is “constantly looking at the supply chain” to trim costs.

 

 

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