The healthcare industry is undergoing a rapid and substantial expansion, with projections indicating that the global healthcare budget will surge to an astounding $15 trillion USD by the year 2030. This surge signifies an escalating demand for adept healthcare administrators and managers possessing a visionary approach to address challenges, thereby propelling operations to new heights.
Remarkably, administrative costs constitute a significant portion, accounting for 34% of the total healthcare expenses in the United States. Within this dynamic landscape, healthcare administrators contend with a myriad of pressing issues daily, ranging from surging costs and regulatory shifts to operational bottlenecks, security imperatives, and the transformative impact of cutting-edge technologies.
For healthcare providers, the prospect of overlooking this rapid growth is not an option. To flourish in today’s swiftly evolving environment, they must embrace adaptability as a cornerstone. This blog is dedicated to illuminating healthcare’s prevalent administrative hurdles and providing insights and optimal strategies to confront some of the industry’s most paramount concerns.
Each team will face different concerns. Skip ahead by clicking a challenge below:
Effectively managing data is crucial in securing the future of healthcare. By 2025, it’s anticipated that a staggering 36% of the world’s data volume will stem from the healthcare sector, positioning it ahead of manufacturing, financial services, and media and entertainment. Refer to the accompanying image for a visual representation of this substantial growth in healthcare data compared to other industries.
Building a strategy to move forward
This surge in data necessitates a strategic approach from healthcare administrators. They must not only gather and interpret this data but also utilize it in meaningful ways to ensure the industry’s resilience. Given the diverse sources of data, administrators must prioritize best practices in data management, especially in financial contexts.
To navigate this data landscape effectively, investment in cloud-based solutions is imperative. These solutions offer comprehensive data visibility and advanced real-time reporting capabilities, enabling administrators to capitalize on this invaluable information. Too often, critical insights are lost in convoluted spreadsheets or outdated systems, which lack the agility required in an industry experiencing rapid expansion.
According to the American College of Healthcare Executives’ annual survey of issues confronting hospitals, financial challenges were the leading concern of hospital CEOs. Many point to the rising cost of healthcare due to the increase in insurance premiums and pharmaceuticals. However, financial concerns for the average clinic or hospital run much deeper than that.
The scope of concerns covers everything from consolidating financials across multiple health care units to managing medical billing, and denial and negotiating reimbursements. Robust financial management is vital. Most healthcare providers will require a digital transformation as the sheer scale of complexity would be impossible to handle manually. Our complete guide to financial management in healthcare is an online hub where we cover much of this information with videos, booklets and other resources.
Many are under pressure to expand and scale operations to serve the growing demand for services, which only adds to the complexity of their financial management. For instance, consolidating financial statements across multiple healthcare facilities is more involved than completing the period end report for one hospital.
For those with multiple healthcare units, check out our guides to financial consolidation:
As the demand for healthcare facilities surges, it’s no surprise that many healthcare providers will find themselves moving to new premises. Given the specialized nature of clinics and hospitals, finding a suitable space can be a costly venture. When your focus is on healthcare, the administration involved in managing and negotiating leases may come as an unwelcome complication.
Our blog on how to successfully negotiate medical facility leases sets out the best practices for healthcare providers looking to scale. It should give your administration team an idea of some of the challenges involved, such as tenant improvement allowances and exclusivity clauses.
Security is a growing concern of many healthcare providers. According to research, healthcare is particularly vulnerable to data breaches. Between February and May 2020, 132 breaches were reported in the US in large part due to the chaos introduced by COVID-19 that enabled scammers to take advantage while the industry struggled with a global crisis. It’s worth taking this risk and what it means for the future seriously, particularly given the amount of sensitive data stored by healthcare providers.
When it comes to protecting the financial health of your organization as you scale and grow, it’s worth investing in systems and solutions that boast advanced security options that protect you and your patient’s information. All accounting should take place in a highly secure environment that can store data and protect against threats.
Furthermore, it’s crucial to implement continuous monitoring and stay updated on the latest security protocols. As cyber threats evolve, so should our defences. Employing robust encryption technologies and implementing multi-factor authentication can provide additional layers of security for safeguarding sensitive information. By maintaining a proactive stance towards security, healthcare providers can fortify their defences against potential breaches and ensure the integrity of their data.
If you manage multiple healthcare units or are expanding, here are five steps to help you reduce and assess security risks.
The supply chain is at the core of the healthcare industry, playing a pivotal role in its seamless operation. One of the most pressing challenges that administrators grapple with today revolves around the effective management of inventory.
This challenge is underscored by a range of common issues that frequently arise in healthcare supply chain management including expensive supplies and materials, high costs for storage of supplies, consistent stockouts, static inventory or low turnover of materials, large amounts of obsolete or expired supplies, high amounts of working capital, inconsistent data and errors in spreadsheets, loss of customers due to lack of supplies, and uncertainty regarding the source of inventory issues.
These challenges, while significant, are not insurmountable in today’s technologically advanced landscape. With the right software solutions in place, healthcare providers can address each of these issues effectively. Whether it’s optimizing inventory turnover or mitigating the costs associated with storage, modern technology offers practical solutions.
For those unsure about the urgency of supply chain management concerns in their facility, our guide to diagnosing and rectifying inventory issues provides a comprehensive resource. It aids in taking a step back, assessing any burgeoning inventory concerns, and addressing potential bottlenecks in the system. This proactive approach ensures that supply chain management remains robust and reliable, ultimately contributing to the seamless operation of healthcare facilities.
Remaining on top of changing healthcare regulations and policies is a critical facet of effective healthcare administration. The landscape of healthcare is continuously evolving, with new regulations and policies emerging to address the dynamic needs of the industry. Staying abreast of these changes is paramount for healthcare administrators to ensure that their organizations remain in compliance, provide quality care, and mitigate potential risks associated with non-compliance.
Adhering to global data management standards and regulations is another crucial aspect of maintaining a robust healthcare system. In addition to industry-specific standards like HIPAA in the United States, there are broader global data protection regulations that demand a high level of accountability in managing personal information. For instance, the General Data Protection Regulation (GDPR) in the European Union sets forth stringent requirements for the handling and protection of personal data. Healthcare providers operating on an international scale must navigate these complex regulatory frameworks to uphold patient privacy and data security.
By steadfastly abiding by these industry-specific and global standards, healthcare administrators not only ensure legal compliance but also instill trust in patients. This trust is a cornerstone of the patient-provider relationship, reinforcing the integrity of the healthcare system as a whole. It signifies a commitment to safeguarding patient information and prioritizing their well-being, which in turn, contributes to a culture of excellence and accountability within the healthcare organization.
Telemedicine and virtual healthcare have revolutionized the way healthcare is delivered, providing patients with the convenience of accessing medical services remotely. However, this shift has brought about a critical need for streamlined and automated complex billing solutions within the healthcare industry.
With the rise of telemedicine, healthcare providers are now catering to a larger patient base, many of whom prefer digital and automated methods for handling their bills. Patients expect fast, efficient, and hassle-free ways to make payments and receive invoices. Automating billing processes not only enhances the patient experience but also relieves the administrative team of the burden associated with manual billing tasks.
By implementing automated billing solutions, healthcare providers can significantly reduce the manual workload on their administrative teams. These solutions can handle tasks such as generating invoices, sending payment reminders, and processing payments. This allows the administrative team to focus on more critical tasks, such as consolidating financials and conducting thorough checks for errors or discrepancies.
One of the most significant advantages of automated billing in the context of telemedicine is its ability to provide immediate and accurate billing information to patients. This is particularly crucial for patients who need to make claims with their insurance providers promptly. With automated systems in place, patients can access their billing information in real-time, leading to faster and more efficient reimbursement processes.
For more information on modern billing, check out some of our key guides:
Revenue operations (RevOps) serves as a powerful framework and set of tools that can significantly enhance the management of every step along the patient journey in healthcare. This approach is particularly valuable for identifying friction points and aiding administrators in comprehending where bottlenecks and pain points may arise. Some of the areas RevOps can address include: resource allocation, workflow optimization, complex billing, patient pain points, end-to-end visibility, and friction resolution.
This is a relatively new concept for healthcare, and so we recommend checking out our guides to get a firm understanding of the power of this framework:
RevOps offers a tailored approach to healthcare, acknowledging its unique challenges and demands. By aligning sales, marketing, and customer success functions with revenue goals, healthcare providers can enhance patient satisfaction, operational efficiency, and financial viability. It is a fitting framework for healthcare and an essential one. It empowers healthcare providers to navigate the complexities of the patient journey, optimize workflows, and ultimately deliver higher-quality care. When implemented effectively, the approach can lead to a more patient-centric, efficient, and profitable healthcare operation.
In the realm of healthcare administration, recognizing the need for tailored, centralized solutions is paramount. Each healthcare facility operates with its own unique set of administrative challenges, from managing patient data to overseeing financial processes. A custom Enterprise Resource Planning (ERP) system designed specifically for healthcare can revolutionize operations by streamlining workflows, ensuring compliance, and enhancing overall efficiency.
To embark on this transformative journey, we encourage you to download our comprehensive custom ERP requirements checklist. This invaluable resource will serve as your blueprint, enabling you to meticulously outline the specific features and functionalities crucial to your healthcare facility.
By taking this proactive step, you’re poised to build a customized solution that perfectly aligns with your administrative needs, ultimately propelling your healthcare institution toward unprecedented levels of effectiveness and success. Don’t miss out on this opportunity to revolutionize your healthcare administration—download our checklist today and embark on the path to seamless, tailored operations.