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Phoenix Children’s rises above financial challenges for sustained success

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Hospital finances have been on a real rollercoaster ride over the last few years. It appears we’re past the steepest declines seen during the pandemic, but many organizations are still working to fully recover from those days of fiscal uncertainty. While 2023 was a stronger year financially than the year prior, the average hospital operating EBITDA margin last year was 10% lower than in 2020.

Given this trend, at Altera Digital Health we’re always looking for opportunities to highlight our clients’ successes and what they mean for their organizations, patients and communities at large. Phoenix Children’s Hospital, an Altera client for more than 20 years, was recently featured in Becker’s Hospital Review for its sustained financial stability. The organization is one of the fastest growing pediatric health systems, with multiple hospitals, ambulatory clinics, a medical group, a foundation and a growing research arm. And, impressively, it has consistently achieved its goal of maintaining a 14% EBITDA margin.

Phoenix Children’s uses several strategies to hit that target year over year, including controlling their IT spend. Bob Meyer, President and CEO of Phoenix Children’s, tells Becker’s it is able to keep its IT costs around 2% of the budget because it does not use a system from the larger electronic health record (EHR) vendors. Instead, it leverages an alternative that enables greater customization as Phoenix Children’s continues to innovate. That solution? Sunrise™ EHR.

Time and again, we hear from prospective clients that big players in the healthcare digital solutions space are not meeting their organizations’ needs as those vendors force a one-size-fits-all approach on their IT. Health systems and hospitals need greater flexibility to not only respond to changing market conditions, but also to invest in innovation that will make the biggest difference for their patients and providers.

We’re proud to continue partnering with Phoenix Children’s as it grows and drives next-level care across its community. To learn more about the organization’s financial success, read the full article in Becker’s here.

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