Revenue, Cost, Productivity and Quality: The Four Modern Day Healthcare Directives Heard in Today’s Boardroom
All across the modern day healthcare landscape in hospital and healthcare system boardrooms, the four main topics discussed on a regular basis by executive leadership are focused on these business issues:
As recently as five years ago, revenue and cost were the main topics that were targeted as talking points for board members to develop a message that consisted of either increase revenue and/or decrease cost. The life expectancy of a CEO in a large health systems is approximately 2.5 years based on their respective success on implementing strategies that complied with the board’s mandate around revenue and cost.
For the progressive thinking healthcare system leader, a singular strategy around introducing a new service line to increase revenue is no longer an acceptable mindset for overall success.
The successful executive now assesses existing revenue or cost generating entities along with productivity and quality tenets to uncover their own hidden revenue challenge that is germane to their healthcare system.
Optimizing operational workflow leads to an increase in productivity and a potential for additional revenue while creating the ability to fix operating cost by the reallocation of highly skilled FTEs.
A paradigm shift towards a spotlight on overall quality is a byproduct of a reimbursement model that now rewards for an improved patient experience and an increase in employee compliance regarding quality indicators.
Why not maximize existing reimbursement around contract accuracy, manage denials effectively and utilize an underpayment strategy of securing optimal payment for services?
By leveraging these strategies, as an executive, you now have discovered a new revenue source to pay for the board mandated new service line that could potentially increase revenue.
How are your executives mitigating risk and where does your hidden revenue challenge exist?