With our 30+ years of experience and industry thought leadership, Coronis Health understands most hospitals struggle to achieve long-term sustainability. Positive financial margins can allow you to maintain a healthy cash flow and invest in new technologies and treatments to provide better patient care. One way for your hospital and surgery center to remain financially viable is by closely monitoring the following five indicators that measure your financial health.
1. Aggregate Volume and Provider Utilization Trends
These numbers provide an overall view of your hospital’s finances, offering a quick view for all managers, department heads, and other leaders.
2. Operating Ratios
This includes your expenses as a component of your net operating revenue. You must also monitor labor, supply, and purchased services costs.
3. Labor Costs
Regularly check costs relative to patient volume. Gauge the productivity in each department against their staffing targets, including overall FTE per adjusted occupied bed target in your hospital as a whole.
4. Patient Revenue Indicators
These numbers include your bad debt percentage and net to gross percentage by payer class. Determine if there are shifts in the payer mix that need attention.
5. Liquidity Ratios
These should cover net days in patient accounts receivable and cash collections as a percentage of your net revenue. Determine the steps needed to improve your cash flow.
Ways to Improve Your Hospital’s Performance
By tracking the above data points and creating and implementing strategic planning, you can create a roadmap for financial success.
Seek Federal Funding
Many rural hospitals received federal funding to aid them during the crisis. Whether obtained from a PPP loan or the CARES ACT grant, hospitals should adequately manage and control financing, as well as restrict its use, so you do not deplete your financial reserve. In some cases, the federal government will require a hospital to document fund usage. But in any case, hospitals should closely monitor these funds.
Understand the “Why”
The key to improving your hospital’s performance is answering, “Why?” Addressing this question means finding your financial distress’s root cause. The process also enables clear communication of your hospital’s goals and expectations, contributing to achieving your desired changes. By gathering all the necessary information and establishing clear objectives, you become better equipped to target the root of your difficulties.
Technology is constantly evolving. You have to keep up to remain relevant and competitive. One crucial way to stay on the cutting edge, especially during the COVID-19 crisis, is telemedicine. Telehealth is rapidly becoming a fixture in healthcare delivery, so every hospital must adapt and take the necessary steps to provide care in a virtual capacity.
Fully Use Resources
Given these unprecedented changes, loss of revenue, and higher expenses, building new facilities is not a feasible option, but you can maximize your available resources. If you have extra space, find ways to rent it out or use it so you can care for more patients at once. Sometimes, it’s the money that you save that matters. Simple changes in improving your communication systems to ensure better responsiveness or checking and updating equipment and technology to prevent outages can already help streamline your processes and increase patient satisfaction.
Promote Wellness and Environmental Programs
Wellness programs help keep employees healthy and happy. It’s a means of implementing “self-care” because when healthcare providers take care of themselves, they can better care for patients. A healthy staff also decreases the likelihood of absences and gives your hospital an overall positive image.
Green initiatives can complement your wellness programs too. Your efforts in contributing to a healthier environment will benefit you and your community. While environmental programs may bring upfront costs, they pay off in the long run. According to a guide published by the American Hospital Association, “By trimming just 5 or 10 percent from energy bills, hospitals, and care systems can make a real impact on their finances.”
How Our Medical Billing Service Can Help
Coronis Health assists hospitals in evaluating processes and workflows. With industry-leading innovations and business solutions, Coronis Health can deliver value to healthcare organizations of all sizes. By outsourcing your medical billing to Coronis Health, it allows you to focus on providing patient care while maintaining your independence and financial security. With our 100% transparency guarantee, you see what we see. Our tailored medical billing service includes clear and comprehensive reports that allow you to make the best financial decisions for your hospital. Furthermore, when your hospital frees itself from the time-consuming task of billing, your business can better thrive because all your focus and energy is directed toward your patients. Rewards will grow when all parties work together towards a mutual goal.
Partner With Coronis Health
Just as a doctor’s first priority is the patient, our first priority is making your facility as profitable as possible. Are you ready to achieve better profits and financial health? Contact Coronis Health today to learn more about our medical billing services, or to request your free financial checkup.