Whether you’re a payer or provider, every healthcare organization needs to manage profit and loss—especially in this era of value-based care. If you want to demonstrate value, you need to know how much you’re spending on patient care and how well that care is working.
Healthcare payers need to understand costs to serve different plans, groups, and members. Getting an accurate understanding of profitability by member segment, healthcare plan, and distribution channel is where you can start. Based on this new insight, you can improve your marketing programs through better member segmentation, and make confident operational decisions about plan design and services.
Providers must compete on service, portfolio, and brand. Individual procedures alone don’t make a competitive difference anymore; the service and value that come with the procedure are what create a competitive advantage. Finance teams need to sort out the relationship between resources, activities, and revenues to satisfy shareholder demands that the organization is profitable, and payer demands that the care is delivering value by improving patient outcomes. They must also satisfy increasing demands from patients for more price transparency.
To do this, healthcare organizations need a complete and accurate understanding of cost drivers and allocations. Yet the majority of organizations don’t have easy access to this information. They’re stymied by a sprawl of aging, disconnected IT systems from a multitude of technology providers. Finance teams can spend hours upon hours pulling data out of these systems, consolidating it into spreadsheets, and patching it together with formulas that can easily break. The fragility of spreadsheets is well documented, making it tough to have confidence in the numbers.
Healthcare organizations need the ability to collect, collate and manipulate granular data for each patient, procedure, and service. They also need the ability to run insightful reports on this data, and plan for future changes based on the insights they uncover. Inefficient allocation, costing, reporting and planning can waste vast amounts of time that should be spent on figuring out the value of care and how to improve it.
To learn how to improve costing, planning and reporting, please join us for this HIMSS webcast. We’ll take a closer look at fine-grained profitability and cost management, including best practices in allocation and costing. You will learn how to: