The healthcare industry is going through a period of transition. Strong wage gains, escalating labor shortage and a tight labor market indicate that the industry may be at a tipping point. A survey by Kaufman Hall reveal that labor costs in the healthcare industry have risen by 37%. Higher than projected labor costs have forced operators such as HAC to lower their financial full-year guidance.
The Great Resignation has spurred the rise of contractual labor across the country. Major states such as California report the highest contract labor expenditure and stabilizing their workforce remains a front-and-center issue for health systems and hospitals.
The shortage of clinical and non-clinical staff has driven the need for contract staff who can be quickly deployed to manage operations. Longstanding labor challenges have quadrupled the cost of hospitalizations making it harder for hospitals to collect patient payments.
The gaps in non-clinical workflows caused by the lack of experienced staff can be addressed through automating repetitive, low-risk processes. Utilizing an appointment scheduling software, for example, can free up front desk staff. It can automate the tedious task of creating and following up on patient appointments. Likewise, an eligibility verification system offers real time insurer eligibility verification checks and prevents verification backlogs. The learning curve associated with technology and its high costs prevent most mid-sized hospitals from investing in expensive technology during tumultuous times.
The 4.3% increase in hospital reimbursement finalized by CMS may not be suffice to alleviate the ongoing financial challenges faced by healthcare leaders. The inflation is projected to have a severe adverse impact on the profit margins of hospitals. It is clear as daylight. Hospitals need to pivot and make course corrections to keep the lights on.
A McKinsey study states that a majority of healthcare leaders have resigned to a drop in operating margins.
SolvEdge offers specialty-focused revenue cycle management and patient experience solutions for healthcare organizations. We work with all major EHRs and PMS and become an integral part of your team from day zero. Combat rising labor costs and the shortage of experienced non-clinical staff with our suite of services and solutions.
We offer FTEs and extended back-office support for hospitals of all sizes. From managing temporary backlogs to full-cycle support we offer service packages that can transform patient experience and financial outcomes.
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