The healthcare industry is navigating a complex landscape filled with significant financial risks. Besides post-pandemic challenges, many organizations are barely coping with financial pressures. Even in developed countries, inflation expired vendor and payer contracts, and lower reimbursement rates are some of the problems of modern healthcare. The expiration of COVID relief funding has further reduced the likelihood of government assistance.
The expiration of COVID relief funding has further reduced the likelihood of government assistance. Others include inflation diluting the true value of revenue increases and limited access to capital.
There are proven ways to improve a healthcare organization's financial well-being to address financial challenges, promote stability, or prepare for growth. The first step is conducting a thorough service line assessment. Providers should focus on retaining the most significant service lines to their communities, even if discontinuing others may improve financial stability.
Also, it’s essential to prioritize the workforce, supporting clinical and back-office staff to prevent labor shortages and retain valuable talent. Understanding operations and incorporating due enhancements based on employee feedback can enable organizational leadership to make informed decisions.
Furthermore, gaining insight into patient preferences and needs, delegating non-clinical responsibilities, exploring possibilities for collaboration, and reviewing payors for profitability are some other aspects of mitigating financial risks in healthcare. Management may consider offering services at higher profit margins by streamlining operations, enhancing value proposition, and offering premium services.
