Reducing costs is important in any industry, but especially in the healthcare field. While reducing costs is currently a top priority for healthcare CFOS, the lack of sufficient data and the proper resources severely hinder this objective. After a full year of nationwide shutdowns due to the novel Coronavirus, reducing costs is more important than ever to the vitality of the healthcare industry.
Insufficient Data Hinders Money Saving
According to the Kaufman Hall report, 54% of over 120 healthcare finance leaders cite insufficient data and a lack of proper reporting to be the reason why reducing costs seem to be impossible at the moment. Without the right information in front of them, it’s not possible to assess where money can be saved. Nor how to strategize a proper plan.
Is The Problem Lack of Data or Analytics?
According to Kristopher Goetz, the senior vice president of performance improvement at Kaufman Hall; the actual reason behind the lack of cost-reduction is not having insufficient data. It’s the lack of analytics that is the real culprit.
Goetz had expressed in a press release that:
“There is a massive amount of data flowing in from claims systems, electronic health records, cost accounting systems, patient satisfaction surveys, wearable devices and other sources. The problem is more than two-thirds of healthcare organizations don’t have the analytics tools they need to use all that data to gain financial insights and inform their decision-making.”
About 63 percent of healthcare organizations wish to improve their budgeting in the new year; they just need the proper tools to help decipher the data that will help support means of cost reduction. Hospitals and other healthcare organizations took a hit in the previous year. Recovering from the financial impact is imperative to continuing the support they offer patients.
What Can Be Used to Aid Cost Reducing Strategies
2021 is a new year where new strategies can be put in place to help decipher the data that is necessary to put together a cost-reducing strategy. Technology will be used heavily to help decode the data collected to help organization devise their 2021 plans. There are hospitals already using cloud-based programs and other software applications in order to sift through the data to make the information more digestible. Anomalies can be picked out from these software programs to help CFOs see what areas can be improved on.
It should be noted that cost-reducing strategies should not just include observing data from previous months. With the data provided from software, hospitals are encouraged to forecast costs. Putting a budget in place helps with driving revenue into the organization. Using rolling forecasting in lieu of the annual budget process is a better way of saving money and driving higher revenue in the long run. Something vital to providing the best patient experience possible.
Understanding The Data Is What Helps Bring In Revenue
Saving money is more important than ever when it comes to the healthcare industry. ERISA Recovery can be the very solution that you need. ERISA Recovery’s mission is to help hospital recovery money that they would normally write off. Before doing that, you can get a free analysis to determine if our company can assist you. Losing money is the difference between providing quality care to your patients and not having the resources to do so. Look to get your free analysis today.