Nearly four-fifths of financial officers at healthcare providers are looking at ways to improve their revenue cycle operations, which includes bad debt collections, and 85% are planning “aggressive” cost-cutting measures as they look to shore up their finances which have been impaired because of the coronavirus pandemic.
The data was released as week as part a Financial Recovery Survey which was conducted by The Chartis Group.
Cost reduction was one of the three highest priorities among those financial leaders who participated in the survey.
“Hospital executives must reduce costs to offset the reduction in elective procedures and patient visits due to COVID-19,” said Pam Damsky, a Director at The Chartis Group, in a statement. “Given the long-term effect of COVID-19 on patient volume remains unknown, and new financial pressures have emerged, many hospitals will need to make tough decisions, including those that have previously been rejected as unpopular or politically sensitive, such as right-sizing management structures, addressing underperforming assets and restructuring the physician enterprise.”
Many healthcare providers have already started re-negotiating contracts with vendors, and laying off or furloughing workers.
Addressing their financial shortfalls on both the revenue and expense side of the ledger offers companies in the credit and collection industry a prime opportunity to win new business. Collection agencies can help collect — whether it be early in the collection cycle or late and can offer flexible, temporary back-office staffs to hospitals that have laid off or furloughed employees.
Healthcare providers are looking to quickly optimize their operations and the size of their workforces and are “aggressively” pursuing opportunities to restructure fixed costs and become more efficient.
