Accounting & Financial Management
The Recovery Audit Contractor, or RAC, program is on vacation. CMS has slowed down audit activity in advance of new contracts. Still, this is no time for hospitals to get complacent about their audit management programs.
Increased admissions drove revenue gains for Tenet Healthcare Corporation and Community Health Systems in the first quarter of 2014 compared to 2013. Both for-profit hospital firms appear confident midway through Q2.
Determining insurance eligibility and estimating patient payment are two of the most overlooked steps in patient engagement and the revenue cycle process. Yet, they're also two of the simplest things a provider can do to maximize revenue and profitability.
With fewer resources available and a need to control and better understand costs, UPMC has piloted a cost-analysis system that may become a national model.
New revenue streams can offset financial losses experienced by providers due to lower utilization, especially within the hospital setting. One way providers can grow revenue is by offering health insurance products.
Aggregated clinical data are essential to managing population health. But analyzing the financial health of various service lines is a complex undertaking.
The potential exists for an unprecedented slowdown in receivables turnover as the Affordable Care Act marches toward full implementation. The importance of having a plan in place to mitigate this problem cannot be overstated.
As a result of the push towards accountable care, increased patient census no longer translates to higher revenue for hospitals. Unless costs are managed internally, higher patient volume may instead lead to narrower margins, if not outright red ink.
Increasing costs, declining reimbursements and narrow profit margins are leading hospitals to reassess their options for long-term financial viability. While continuing to seek ways to improve efficiencies and reduce costs, it is essential to understand the importance of value-added premium services.
Most healthcare managers recognize the importance of liquidity, but many fail to take the necessary steps to increase it.