The new subsidiary, Parallon Business Solutions, is based on support services HCA already offers to some non-HCA hospitals, but with the subsidiary, the company expects revenues to rise from $250 million a year currently to up to $1.5 billion within five years.
Here is a summary of the four units.
Supply chain: This unit will offer warehousing, distribution and supply management consulting to help hospital systems trim costs as they operate emergency departments and pharmacies.
Business Performance Group: It will offer hospitals help with cash collections from governmental and managed care payers as well as other related services.
Workforce Management Solutions: This unit will offer a one-stop approach to managing contract labor, including recruiting nurses, physician assistants and other clinical employees.
Revenue Cycle Management: This unit is expected to double from a $4.2 billion market today to one of up to $10 billion by 2015, as outsourcing becomes more accepted.
A key target of the new initiative is non-profit hospitals. “Historically, these not-for-profits would have seen buying from HCA as helping a competitor, but today they’re under so much pressure to reduce their costs that that’s less of a concern,” said A.J. Rice, a stock analyst at Susquehanna Financial Group in New York.
Tenet Healthcare launched a similar initiative, Conifer Health Solutions, two and a half years ago. It provides revenue cycle management and call-center support to 79 client hospitals.
Read the Tennessean report on HCA.
Learn more about Parallon Business Solutions.
Related Articles on Supply Chain:
HCA Announces Leadership Reorganization, Names New President
8 Largest Group Purchasing Organizations for Hospitals
10 Key Factors for Hospital CEO Success in Era of Reform
