Three-quarters of hospitals have experienced “adverse revenue cycle impacts” as a result of the COVID-19 pandemic, and 27% reported higher levels of bad debt or uncompensated care, according to the results of a report that were released last week.
Hospitals are also facing issues retaining staff and are looking to embrace less traditional models and incentives as a means of keeping employees from leaving, according to the report, which was compiled and released by Kaufman Hall.
“We believe it is time for leadership to rethink their approach to performance improvement, and this will require rethinking the premise that not-for-profit hospitals and health systems can lower their costs while maintaining control over all aspects of their operations,” the report concludes. “Organizations are going to have to risk giving up some control and find partners who can perform some of their functions more effectively and efficiently.”
The area that has had the largest impact on revenue cycle performance during the past year has been the change in the mix of payers, according to the report, followed closely by an increase in the volume of denials by health insurance providers. Hospitals are seeing more patients who have coverage through Medicaid which is causing more administrative work and headaches, according to the report.
Among the revenue cycle recommendations made in the report are:
- Establish an integrated clinical denial management model
- Increase focus on real-time monitoring and investigating of initial denials
- Thoroughly evaluate the tasks and responsibilities you might consider outsourcing
- Increase focus on and scrutiny of revenue cycle vendors
“All employers, including vendors, are facing challenges in attracting and retaining staff,” the report stated. “Make sure your facility is receiving the attention and dedication it deserves by evaluating vendor performance, productivity, and effectiveness more regularly. Also validate that the vendor is continuing to prioritize staffing resources to provide committed levels of services and support.”