CFOs at Struggling Hospitals Forced to Update Revenue Systems
Hospital CFOs are updating IT systems to reflect changes in reimbursement to value-based models, according to a new survey from New York City-based Black Book Market Research
Black Book surveyed 813 hospital CFOs, vice presidents of finance, and controllers and found that of those hospitals with negative operating margins, 91 percent are orchestrating their technology infrastructures to support value-based models, even while most are still fee-for-service. Ninety-three percent of struggling hospitals with negative operating margins are investing in coding, value-based support software, collections and revenue-care management (RCM) outsourcing.
“Most hospital CFOs have no choice but to leverage next generation financial system solutions including software and outsourced services in order to keep their organizations solvent. The reimbursement challenges ahead to get paid may require several new applications, and the frank reality is that outdated, understaffed and failing current solutions could quickly close a marginally performing hospital for good,” Doug Brown, managing partner of Black Book Market Research, said in a statement.
In contrast, Black Book notes that 80 percent of CFOs at hospitals that have long term viability have already successfully initiated the transformation of their RCM system. Unlike those at hospitals with negative profit margins, those CFOs are now putting money in dashboards, analytics and business intelligence, population health, physician portals, patient engagement solutions, and continued acquisitions.
