PRESENT STATE OF HEALTHCARE FINANCE
Hospital finance executives are facing increasing financial challenges. US News reports that up to 200 Rural Hospitals are at risk for closure in 2023. And, hospital bankruptcies are on the rise. For many, including you, keeping the doors open is the greatest challenge. Cash flow is the most critical issue, with the daily challenges of meeting payroll cash requirements, satisfying vendor demands for payment, keeping the supply chain fluid, and keeping lenders from placing restrictive covenants on cash reserves as your hospital’s financial condition continues to deteriorate. Then there are reimbursement issues to address including that payback letter you just received from the MAC. To make matters worse, if your hospital’s revenue cycle is not up to snuff the hospital is leaving money on the table which is inhibiting your hospital’s ability to meet operational demands. And, what about that lingering question that you always have regarding your hospital’s compliance with Federal and State laws?
While there has been a lot of attention on nursing shortages, we also know that staffing levels have been negatively impacted in non-clinical departments, such as finance, patient financial services, reimbursement, and other departments. As a result, healthcare organizations have not had the opportunity to properly address critical issues to assist in improving cash flow and operational effectiveness, such as:
- Thoughtful strategic planning with various budget models/scenarios that can address service line profitability.
- Timeliness of the financial close processes (i.e. account reconciliations and reporting) to provide real-time analysis of the organization’s financial results.
- Will the budget be prepared timely? How will the budget tie into strategic planning and address potential immediate actions necessary to continue as a going concern?
- Denial management and charge capture issues in the revenue cycle processes. There has been a large increase in denials. Is your organization leaving money on the table?
- Patient bills may not drop timely which results in a slower cash flow.
- Thoughtful analysis of payor contract negotiations. Contracts are usually written for more than one year. Has your organization properly taken this into consideration as reimbursement is shifting to different settings (i.e. inpatient to outpatient) and various payment methods that are being offered?
So how can Microscope help?
Our experienced group of healthcare professionals can assist your organization in addressing many of your critical issues. Examples include temporary staffing, from CFO’s all the way down to staff accountants, assistance with operational issues including cash management, reimbursement, and revenue cycle review and management. We have the resources to lend a hand.
For more information please contact: