A digital preview of coming attractions…
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Health system margins have always been thin. But when the pandemic arrived, the CARES Act relief kept operating margins close to what they were pre-pandemic. Healths systems are at risk as federal subsidies are depleted and operating margins remain in the red. All in all, inflation, labor shortages, and supply chain issues continue to plague health systems’ bottom line.
To combat these risks, health systems need to find new ways to drive down costs and accelerate revenue. They can accomplish both goals by digitizing the patient financial journey. Our research shows that when health systems incorporate digital tools into their revenue cycle, they can save big—to the tune of more than 1% of Net Patient Revenue. The key is to choose the right solutions that will help them achieve their goals. Let’s get started.
The Council for Quality Healthcare Index estimates that health systems spend $391 billion on administrative tasks. Of that figure, $42 billion is spent on managing financial transactions. But if the health industry transitions to electronic transactions across the patient financial journey, they can save 42% of that: $16.3 billion. Not only that, but health systems that integrate digital tools into their revenue cycle can also improve the patient experience and reduce the administrative burden on their staff.
Our article Building a Financial Safety Net: 4 Key Digital Solutions to Optimize the Patient Financial Journey discusses four digital capabilities that will help health systems transform patients’ financial journey while making a financial impact: prior authorization, financial clearance, patient bill pay, and revenue cycle analytics.
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