Healthcare finance leaders still lack confidence in their organization’s ability to adapt to a rapidly evolving business environment. Growing resource constraints are also a cause for concern, potentially hampering the ability of legacy hospitals and health systems to make the investments needed to compete effectively as the healthcare business model changes.
The fourth annual 2020 Healthcare Financial Outlook report demonstrates why insights from improved data and analytics across multiple dimensions will be critical for successful performance improvement in the years ahead.
Results from the 2020 Healthcare Financial Outlook show that healthcare finance leaders plan to improve financial performance with three key strategies:
- Employ tools that enable strategic cost reduction
- Become more agile
- Understand the impact of clinical outcomes on financial performance
Employ tools that enable strategic cost reduction Health systems need the right data, benchmarking, and reporting tools to strategically tackle cost reductions, as evidenced by the 87% that named cost reduction activities a primary goal.
However, two-thirds of institutions lack adequate tools to identify and manage cost-reduction activities. The survey shows that 31% of healthcare organizations have sufficient tools, while 54% have insufficient tools and 10% have no tools at all.
Become more agile
Competition is heating up from local rivals, new retail-based competitors, and health plan networks.
To compete, you need to know what services set you apart from the crowd and which ones are margin positive, but that demands a granular understanding of costs involved in each service. However, only 36% of respondents have a high degree of confidence in the accuracy of results from their existing cost accounting system.
Understand the impact of clinical outcomes on financial performance
The inability to connect clinical and financial performance affects not only the cost structure of hospitals and health systems, but also the costs borne by those who pay for care.
That’s why hospitals and health systems need a software solution that can serve as a single source of truth for clinicians and finance leaders alike. Only 14% of healthcare leaders report having access to actionable information that helps them address unwarranted clinical variation and other cost-related quality concerns. And just 14% say they are “very prepared” to use clinical measures to impact financial results.
These deficits leave real dollars on the table — money that can be used to improve the patient experience and the sustainability of your organization.
Learn how your hospital or health system can improve
Check out our report for actionable steps your hospital or health system can take to meet the challenges and opportunities.