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Advice and Information for Finance Professionals

HFMA Helps With the Challenges Facing American Healthcare

Did you know the United States spent 17.2% of GDP on healthcare in 2017 — but is in the lower half of the Organization for Economic Cooperation and Development (OECD) countries’ life expectancy rankings?

Access to quality healthcare is incredibly important. Doctors, nurses, and staff in hospitals across the country save the lives of countless people every day. However, looming changes to the market are threatening the viability of the current healthcare model.

A 2018 Deloitte study identified a series of market trends that will negatively affect healthcare institutions unless change is embraced:

  • Global healthcare spending from 2012-2016 increased at an annual rate of 1.3% but is expected to jump to an annual rate of 4.1% in 2017-2021. The driving forces are aging populations, increasing labor costs, and advances in medical treatments.
  • Increases in deductible payments are outpacing the increase in costs covered by insurance.
  • The US spends $3 trillion a year on heath care, a figure which is projected to grow considerably through 2024.

In the United States, hospital and providers are engaging in a dizzying number of mergers and acquisitions (M&A) in response to rising costs and lower insurance expenditures. A benefit to the uptick in M&A activity is greater access to capital—providing merged entities investment opportunities to improve their facilities, technology, and staff.

One of the mission-critical areas in dire need of investment is the back office. As healthcare moves beyond the hospital into the home and community, it’s imperative that nimble and scalable solutions are adopted to better respond to changing care delivery models. Critical infrastructure systems like ERP are often old, inflexible and highly customized, making it difficult and cumbersome to change billing processes, account for new insurance models or integrate an acquired entity.

Join Us at HFMA to Learn More

How are peers in the healthcare field responding to these pressing challenges?

Find out at the Healthcare Financial Management Association (HFMA) Annual Conference hosted in Orlando, FL, June 23-26, 2019. With over 40,000 members, HFMA strives to improve the healthcare industry by building up collective knowledge, best practices, and standards. Widely considered the premier organization for finance decision-makers in the healthcare industry, HFMA is where executives from across the nation meet to collaborate and gain the necessary tools to tackle complex issues.

With sessions ranging from revenue cycle process improvement to accounting, financial management, budgeting, and capital investments, there will be plenty of engaging learning opportunities. Stop by the Oracle booth (#223) to learn more about how Oracle ERP and EPM Cloud can help you respond more quickly to changing delivery models and make organization future-ready.

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