3 Steps to Achieving Financial Stability as a Not-for-Profit Hospital
3 Steps to Achieving Financial Stability as a Not-for-Profit HospitalPublished :
Achieving financial stability as a not-for-profit hospital is no simple feat. With a limited budget for attracting and retaining key talent, organizations are facing the threat of consistent employee turnover, alongside mounting new concerns about reporting regulations. For today’s nonprofit organization to thrive, whether in the medical sector, or elsewhere, it is crucial to find a strategy for maintaining employees that also allows the improvement of returns on their safest assets.
Not-for-profit hospitals are of major importance to the economy and people of the United States. As more shortages surrounding doctor and nurse care appear, nonprofits are under increasing pressure to find a way to prevail against the stacking odds. So how can hospitals without the same degree of finance as for-profit organizations promote security for their businesses? The following 3 steps can certainly serve as an excellent starting point.
Step 1: Increasing Charitable Donations
This might seem like an obvious solution to financial stability, but it’s one that’s often forgotten. Today, there appears to be some concern that nonprofit hospitals are straying from their primary values and mission. These anxieties have led to controversy surrounding the way that nonprofits prove and protect their tax-exempt status. As such, nonprofits need to avoid taking on the practices of for-profit organizations. One useful strategy for this may be to work on enhancing a focus on charitable giving – the foundation of nonprofit existence.
By addressing their approach to marketing and their efforts as an organization, nonprofit hospitals may be able to engage in more community activities and collaborations that raise funding sources. For instance, one solution could be to access frequent marketing efforts that help to outline the brand, and underline the unique benefits the provider can offer. Alternatively, some not-for-profit groups will benefit from engaging with community volunteers to help power their local value.
Step 2: Offering Specialty Care
Though not-for-profit organizations are inherently different from for-profit companies, sometimes their approach to marketing themselves as a business must be the same. Just as a business must have a unique selling point, a not-for-profit can expand their offerings and improve their chances of success by providing access to specialty forms of care. To get the most out of this strategy, hospitals will need to determine the specialties that are most appealing to their demographic, and hire the correct talent to supplement a new form of healthcare within their organization.
Of course, since hiring talent can be difficult from a nonprofit perspective, accessing the right individuals for specialty care will require hospitals to reconsider the benefits that they award to their employees. Many hospitals and nonprofit care providers find that they can enhance employee attraction by using SERP life insurance solutions, such as split-dollar life insurance. However, it’s crucial to find a program that not only protects the key employees within that group, but also offers a high return on cash without sacrificing liquidity.
Step 3: Retaining the Right Staff
Attracting specialist talent isn’t the only problem that not-for-profit hospitals face. Issues of constant turnover can eat away at their budget, leaving them with very little to invest in their primary service. This means that to be financially stable, not-for-profit hospitals must find a way to retain their staff members over long periods of time. While it might not be possible to offer a competitive wage within a nonprofit group, many hospitals have other solutions that they can access that provide similar value to their employees. For instance, unique life insurance and retirement plans such as efficient 457(f) solutions could give employees the reassurance they need, without damaging the financial flexibility of the hospital.
Though some of these strategies are risky and complicated, the right solutions can help hospitals to improve their liquidity and tax-efficiency, while maintaining the employee skill that they need to thrive.