Solutions for the Revenue Cycle and clinical labor shortage
As the healthcare operations and finance leaders struggle to find the resources for care delivery and administrative processes, hospitals and healthcare systems face a new challenge – unprecedented inflation. As inflationary pressures combine with a sub-optimal revenue cycle, they must outsource RCM functions and choose partners who can provide trained and certified resources.
The Genesis of the staffing crisis
Post pandemic, the staffing crisis has hit an all-time high, and many hospitals report a shortage of doctors, nurses, and other medical professionals. Many emergency departments have closed as newer variants of COVID-19 increase the demand for COVID care. Many Ambulatory surgery centers advise patients to postpone elective surgeries due to a shortage of beds and clinical personnel. It is not that staffing shortages are new to the healthcare sector. They have hit the worst in decades because of several factors outlined below.
Caregiver burnout and exhaustion. The excessive workload caused by the pandemic on doctors, nurses, and other healthcare professionals has caused burnout. The multiple months of relentless pressure to deliver care amidst a challenging environment have led many to the point of no return. Lower wages, lack of motivation, and an aging caregiver population contribute to burnout.
Better opportunities. COVID-19 prompted a national-level re-think of the value of the job, and many people chose to opt for better opportunities in sectors such as retail. Some healthcare professionals moved out of current jobs due to changes in the job location of their spouses/partners.
The aging population and the sluggish pace of addition of Nursing talent. America is aging, and the demands of elderly care become increasingly tricky as chronic conditions require specialized care. With fewer younger nurses joining the talent pool, the older nurses are facing the pressure and burning out and choosing to leave the sector. While most states have nursing schools, there are not enough people opting for nursing as a vocation.
Healthcare Pay as compared to other sectors. Across the nation, healthcare organizations have struggled to attract entry-level talent. In institutions in rural areas, the problem is even more critical. Sectors such as retail, education, and gig economy jobs have much better pay than healthcare. Rural facilities must pay for hire and provide attractive components such as sign-on bonuses and relocation grants in the current competitive state.
Impact of Staffing Shortages
Staffing shortages affect employee morale, delay patient care, and cause clinician burnout. With the rising inflation, care cost is also increasing significantly. Revenue cycle leaders looking at mission-critical financial survival of the facilities need a dedicated workforce focused on resolving each claim and accelerating cash flow. They must support the RCM team with proper technology and tools to improve workflow and productivity. These tools require investments in development and process transformation.
Solutions for Hospitals, Health Systems, and ASCs for Staffing challenges
Healthcare CFOs and HR leaders can solve the issues related to the staffing shortage in different ways.
Changing the employee value proposition. Improving compensation and benefits, providing learning opportunities, and developing a culture of transparency can help you attract, train, and retain high-quality talent.
Hiring foreign workers. In nursing roles, healthcare recruiters focus on bringing foreign workers on work visas. The nursing shortage is a longer-term trend. The only solution is to augment the domestic workforce with foreign workers.
Rural hospitals and ASCs can turn to staffing firms and remote workers. Contracting temporary staffing solutions providers and enforcing stronger SLAs for coverage is one way of solving the issue. Another way they can solve the problem is by cross-training current staff.
Outsourcing your Revenue Cycle. Hospitals and healthcare systems’ CFOs cannot afford to have a sub-optimal revenue cycle today. A robust financial backbone enabled by an effectively performing revenue cycle team can provide you with solutions to other pressing issues. Outsourcing the revenue cycle function to global services providers can reduce the cost of the function and help you achieve better revenue cycle outcomes. The savings from reduced costs and improved realizations from claims can unlock value on multiple fronts and help CFOs find the money they need to invest in other areas.
Conclusion
The staffing shortage is likely to continue for a long time. For healthcare CFOs, the time is now to find practical solutions to accelerate the revenue cycle and improve the financial health of their institutions. Clinical staffing requires a creative blend of in-house, remote, and temporary workers. By outsourcing administrative functions such as billing and coding, healthcare leaders can unlock the cash to invest in innovation and combat the current inflationary pressures.
