The Commercial Appeal on the results of the $10.4m contract between FTI Cambio and The MED.
In their final report to The Med’s board Thursday morning, Cambio leaders said they found the savings in improving hospital efficiencies, cutting 88 jobs, divesting the Health Loop Clinics, negotiating better physician and insurance contracts, improving its supply chain and changing employees’ benefits.
Despite their efforts, Cambio’s five-year plan for The Med insists the hospital needs an additional $32 million each year to operate and make capital improvements. Officials are still looking for $22 million of that total.
The projected $38.8 million in savings could only be realized if nothing — including government funding, patient volumes or insurance rates — changes for The Med.
As the article clearly states, the MED isn’t out of the woods. There is still a huge financial shortfall for the hospital, despite the savings. If that shortfall is not met, the impact on the availability of healthcare to the region will still be devastating.
The MED has done it’s part to answer the questions of doubters in state government about the way it’s managed. Hopefully, the budget discussions that are underway will provide the funding necessary to help keep the hospital viable. If not, the strain on private institutions here in the Mid-South will only exacerbate the problem, leading to an even more dysfunctional situation going forward.