"Focus on the Doghnut----not the Hole"---a true story

Monday, October 09, 2006
"Focus on the Doughnut....not the hole."--a true story

(Ed. note. The following is a summary of the comments by The Observer at the Evansville School board on Monday night regarding the Half Day Kindergarten. Click on the audioblogger to listen in.)

Some years ago, when The Observer was a young man, like in 1977, I worked in a large metro hospital. One of the issues that was confronting hospitals during that time was "rate adequacy" or in laymans terms--how to structure fees so the government would give the most revenue to the hospital. Our particular state, Minnesota, also had rate caps in effect, which strictly limited any rate increases for daily room rate. Our head administrator paid for my trip to Washington, DC for a seminar in August on "Maximizing Medicare Reimbursement". I was so young, I did not know that nobody in their right mind goes to Washington in August...anyway.

I returned and was fresh with ideas on maximizing revenue. When I returned, the head administrator called us in and informed us that we were going to be a trailblazer and implement a new concept called "out patient surgery." Rather than paying $2000 for a procedure, now patients could pay $200.

The accountants were shocked. Some doctors felt it might mean the end of their practices. Our administrator just smiled. "Trust me," he said. "The numbers will work out. Besides----this is what is best for the patient."

Well....You all know the rest of the story. Soon news of the Out Patient surgery option spread like wildfire. We were having patients come from all over to our hospital. For outpatient. For newborn care. And yes when the husband had a heart attack...he said "Take me to Unity." The numbers worked out big time.

We never did hear another word from the accountants.

I had thought I knew a lot about numbers. About how they work. I was wrong. In strategic planning, one has to extend the timeframe and count the right things.

John Haines had taught me a wonderful life lesson about strategic planning. About keeping my eye on the doughnut and not the hole. And about keeping my eyes on what is important--the patient.

In education...it is the student. And for the half day kindergarten, I believe that our school district has not properly analyzed the numbers about this program. I urge the school district to consider the views of all these parents here tonight as well as those who appeared in April. They are here because they know this program is important. It goes to the very heart of what we are as an educational institution. I urge you to listen and respond.