Hospital and health system leaders are directing their attention towards enhancing revenue cycle management over the next year, aiming to achieve a more financially stable position as they approach 2025. The focus lies on leveraging technology, embracing automation, and enhancing staff skills to bring about significant improvements.
Stephen DelRossi, the interim CEO and CFO of Northern Inyo Healthcare District in Bishop, California, emphasized the pivotal role of revenue cycle improvement for the upcoming year. Addressing issues such as cash collections at 87% of net patient revenue and a denial rate nearing 5%, DelRossi expressed confidence that rectifying these aspects would propel the hospital into a positive financial position. Additionally, the hospital is actively expanding its services and service lines to generate increased revenue. In the last five months, targeted strategic efforts led to a remarkable increase of over 14% in net patient revenue and an 8% reduction in costs, resulting in a positive shift from a financial deficit to a surplus.
Robin Tice, Chief Nursing Officer at Eastland Memorial Hospital in Texas, echoed the sentiment, identifying fiscal responsibility as the most exciting challenge for her team in the coming year. Recognizing the crucial role of nurses and clinical leaders in the revenue cycle process, Tice is focusing on ensuring accurate documentation and charges, emphasizing the importance of proper education in this regard.
Innovative changes in healthcare delivery are also being implemented to streamline the revenue cycle and enhance patient care. Intermountain Health, based in Salt Lake City, Utah, has introduced a prepaid care model, simplifying the revenue cycle process. Greg Poulsen, Senior Vice President and Chief Policy Officer at Intermountain, highlighted the benefits of a prepayment or value-based payment model. This approach allows the health system to prioritize the well-being of patients, whether through promoting a healthy lifestyle, early intervention in diseases, or comprehensive efforts against severe ailments. Poulsen emphasized that the prepaid model rewards simplification, minimizing the complexities associated with revenue enhancements and fostering a gradual shift towards a future with increased patient focus and fewer distractions.
As healthcare leaders embark on these transformative initiatives, the collective aim is to not only bolster financial stability but also enhance the overall patient experience and the efficiency of healthcare delivery.