Hospital CFO, Your Rev Cycle Management Isn’t Working
In an ever-changing healthcare industry, there remain two constants for the Hospital CFO: increasing labor costs and a shortage in clinical talent.
Hospital CFOs understand their operating expenses will grow year over year, but what they now realize is the increased costs are as much as 5% annually. This budget surge significantly affects a hospital’s ability to create revenue and invest in future services.
The bigger issue, however, might be the availability of clinical talent. Some might say to offset the increase in labor costs, hospitals will look to hire more doctors and/or nurses to their program to increase revenue. The logic in this decision is that the more healthcare professionals you have, the more patients (and as a result, revenue) come through the hospital doors.
Although this might make sense at a high-level, those in the hospital world know this is not realistic. In fact, the combination of value-based care and the challenging task of retaining and recruiting clinical talent makes generating revenue with this method nearly impossible.
According to a recent (Aug 2018) Labor Management Survey by HFMA and Navigant, when CFOs were asked how hospital recruitment is going, 35% responded that their doctor shortage is worse than last year and 43% reported less available nurses than the previous year.
So, CFOs, how do you improve your revenue cycle management at your hospital?
The hospital CFO needs to find ways to improve productivity, create better workflow designs, and take the burden off current clinicians. The solution, though, may not be in the hospital. If the words “outsource” and “offshore” stir up a negative connotation, it’s time to rethink them. This isn’t about taking jobs from U.S. workers. It’s about filling shortages so your current clinicians don’t burn out.
Most successful hospitals are outsourcing certain departments or clinical workflows, and it’s proving to be a necessity in the industry. Clinical Documentation Improvement (CDI) is a fitting example of a service that can be successfully outsourced. Most health systems will staff this solution with a Registered Nurse. But as discussed, nurses aren’t easy to recruit, and your current nurses are probably over-worked already. Even if you don’t have an issue recruiting nurses, they’re an expensive resource working on a more administrative function in the revenue cycle.
The good news is that you can get clinical expertise (to maintain quality) at a lower cost with a strategic outsourced partner, especially one that can “co-source” which allows you to build your own dedicated team that can transition to become your full-time employee. There are many options when considering a vendor partner, but one that offers the depth of clinical expertise and talent as well as a co-sourcing partnership gives you a strategic advantage.
Shearwater Health is built with an exclusive healthcare focus to provide health systems with the experience needed for clinical workflows at a cost that allows the hospital to be successful (and make the Hospital CFO happy). The leading health systems maintain control of their resources and turn to vendor partners who offer proven results, a depth of clinical talent, and the unique “co-sourcing” model where the dedicated team of clinicians working offshore can one day work in your office in the U.S.
Contact us to learn more.
VP, Provider Solutions