HOW HOSPITALS AND HEALTH SYSTEMS CAN RECAPTURE REVENUE AND PREPARE FOR GROWTH
Understanding the Pain
It’s no secret that hospitals across the country have been hit hard by the COVID-19 pandemic. Back in April, during the height of the pandemic, the U.S. Department of Health and Human Services (HHS) conducted a survey of hospital administrators asking them what the most significant challenges they were facing. As you might expect, testing and caring for patients with confirmed or suspected infection and keeping their staff safe topped the list of challenges. Not far behind were shortages of testing supplies, long waits for test results and lack of adequate personal protective equipment (PPE) for their staff.
Now, nearly eight months later, as cases continue to surge, hospitals are still facing some of these same obstacles, but the list of concerns has grown to include:
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Difficulty maintaining adequate staff, both specialized providers and support staff
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Maintaining and expanding institutional capacity
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COVID distractions, including people working from home and the strain on staff
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Higher costs and decreased revenue
As hospitals work to address these challenges, they are feeling the pain of historic financial pressures. According to the American Hospital Association, hospitals are losing $50 billion per month Hospital and health system revenues have declined sharply due to the canceling of non-emergency procedures, the postponement of care by many people concerned with contracting the virus and job losses that left many Americans uninsured. Making matters worse, the latest surge in cases has caused people across the country to further delay care or forgo specialty visits.
In addition to revenue loss, costs have skyrocketed. It’s estimated that the cost of treating COVID-19 patients could exceed $139-$558 billion, depending on how many people are ultimately hospitalized because of the virus.1 The Kaiser Family Foundation estimates that the cost of treating a patient with COVID-19 could be more than $20,000 and over $88,000 for patients who require ventilator support.2
The three major credit reporting agencies have revised their financial outlooks for hospitals from stable to negative because of the effects of COVID-19. All three agencies cite increased costs, along with a reduction in admissions and outpatient visits as creating new financial pressure on hospitals, on top of existing concerns around low reimbursement from government payers and coverage shifts from employer-sponsored insurance to Medicare.
Unfortunately, these challenges are particularly acute for rural hospitals, which were feeling financial pressure prior to the pandemic. In fact, approximately 128 rural hospitals have closed since 2010.3 In addition to having a different payer mix, rural hospitals typically have less access to capital, and therefore, will have a more difficult time weathering the effects of the pandemic.
All of this is concerning, not only for hospitals and health systems, but for the communities that they serve.
Finding the Cure
When faced with multiple challenges, it’s human nature to hunker down and focus on the most immediate tasks. This “survival mode” mentality is necessary, to an extent, but it doesn’t allow for long-term planning. Eventually when a vaccine is fully implemented, the hopes are that the crisis will ease. But unlike the pandemic, the financial, managerial and regulatory difficulties hospitals and healthcare systems are experiencing will not cease. It’s imperative that hospitals and health systems see beyond the current situation and look toward the future.
How will your institution survive this crisis and thrive going forward?
Experts have found that companies (including hospitals and health systems) that have adopted data-driven technologies to become more agile and improve efficiencies have improved profitability during this economic and health crisis.4 According to The Hill, “These organizations have used communication technologies, excellent leadership skills and remote team collaboration to promote resilience and financial stability in this ‘new normal,’ as well as position themselves for future success.”
However, this is easier said than done, especially when you’re dealing with the “crisis of the day.” Does this sound familiar? Staff members working remotely are inundated with hundreds of internal emails, as well as emails from vendors. And while some of those vendors may be beneficial, your staff has no time to research options or reach out for the help they need. Meanwhile, administrators are stuck in a perpetual Zoom call and losing the value of “in person” interaction at their institutions. In short, it’s overwhelming.
What if we told you there is a way to recapture the revenue you’ve lost during the pandemic, improve efficiencies, build a culture that attracts and retains talent, and position your institution for future success?
A Collaborative Solution
We’ve combined the experience and expertise of three respected names in the healthcare industry: Bill Dunbar & Associates (BDA), Kontact Intelligence (Ki) and Value Health. Together, we are Impact Healthcare Revenue.
Each of these companies provide unique, proven solutions that can help you:
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Recapture revenue
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Reduce operating and capital expenses
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Increase productivity
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Develop and maintain staff resources
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Apply new strategies to improve culture
Bill Dunbar & Associates (BDA) – BDA provides revenue growth strategies to clinics and hospitals throughout the United States. BDA’s team of professionals and certified coders, with decades of experience working in the healthcare industry, increase the reimbursement to its clients by improving medical documentation, coding, compliance, and reimbursement for our clients. BDA offers a comprehensive, customized, budget-neutral program focusing on improving compliance along with net revenue per patient encounter. BDA’s primary focus is on Outpatient Clinical Documentation Improvement (Outpatient CDI) for the Emergency Department-Facility Component, Emergency Department – Physician Component, and Employed Physician Practice(s) and/or Physician Group(s).
Kontact Intelligence (Ki) – Offers the most comprehensive and strategic technology application of its kind specifically designed to maximize your medical staff assets. From recruiting to retaining your top performers. Ki generated reports afford you the security of having your finger on the pulse of all your medical staff issues and growth opportunities. Ki enables you to recruit faster and smarter; build physician relationships and referrals; monitor productivity outliers; and secure market share.
Value Health – Uses a data-driven system to build a culture of accountability, empowerment and excellence. Value Health can help you create a high-performance culture through better planning and design, lean resource management and continuous learning. Our proven system helps you capture the full value of your physician enterprise by creating a high performing organization with continuous improvement hardwired into its culture.
So, what does all this mean to you? Your hospital or health system may not need the programs and services of all three of our partners, but with a comprehensive analysis, we can recommend customized solutions that solve complex problems.
And, because we recognize and understand the challenges you’re facing, we offer:
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A preliminary analysis at no cost and with no obligation (it’s painless!)
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Onsite or virtual services
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A budget neutral solution
Call 800-783-8014 to schedule a free, no obligation analysis today.
In 2020, BDA has 100% client contract renewal. Even through this global pandemic, BDA has an unprecedented contract renewal rate, which means our services are recognized even more to assist our clients with the negative impact on their hospitals’ bottom line with a solution for recapturing lost revenue.
“We understand that hospitals and health systems are reluctant to talk to vendors that they haven’t worked with, especially during these stressful times,” said David Dann, CEO/Partner of Bill Dunbar and Associates, LLC. “Yet now is the time to build trusted partnerships that can help your enterprise hit the reset button and implement strategies for future success.”
Even before COVID-19 turned our world upside down, many hospitals were already facing financial, regulatory and managerial challenges. The pandemic has certainly exacerbated those issues, but the underlying conditions are sure to remain. In order to survive and thrive, organizations must “think outside the box” and become more data driven, efficient and patient-oriented, while developing a culture of excellence. We can help you do that.
1 s3.amazonaws.com/media2.fairhealth.org/brief/asset/COVID-19%20-%20The%20Projected%20Economic%20Impact%20of%20the%20COVID 19%20Pandemic%20on%20the%20US%20Healthcare%20System.pdf
2 healthsystemtracker.org/brief/potential-costs-of-coronavirus-treatment-for-people-with-employer-coverage/
3 shepscenter.unc.edu/programs-projects/rural-health/rural-hospital-closures/
4 TheHill.com, “Key challenges for hospitals in the age of COVID-19,” by Deane Butchey, Attila Hertelendy and Jerry Haar, 5/30/20
Additional Sources:
American Hospital Association
“Hospitals Report Challenges in Responding to the COVID-19 Pandemic,” by Liz Janetschek, 4/17/20.
U.S. Department of Health and Human Services