As our industry evolves, so do the challenges and opportunities facing healthcare leaders. Recently, Jason Greenwald had the privilege of attending the NAHAM Annual Conference, where insightful discussions shed light on key themes shaping the future of healthcare operations. Here, we offer a recap of some notable takeaways for those looking to stay ahead in this dynamic landscape.
- Staffing Challenges Persist:
Since the pandemic hit, staffing shortages and labor costs have been ongoing headaches for health systems. While there’s been a slight dip in labor costs, they’re still stubbornly high. According to Fitch Ratings, hospital employees’ average hourly earnings growth slowed to 3.75% from a peak of 8.4% in 2023, yet they remain higher than pre-pandemic levels.1 Additionally, a recent Experian Survey found that 100% of respondents noted that staffing shortages are impacting the revenue cycle and patient engagement.2 This talent crunch is exacerbated by competition from both local retail industries and national providers, making it tough to find and retain skilled workers. To address these challenges, health systems are turning to automation solutions like robotic process automation (RPA), artificial intelligence (AI), and machine learning (ML) to bridge the labor gap and create a more tech-savvy workforce. - Health Systems Seek Adaptive Partnerships:
Health systems are on the lookout for partners ready to shake up their operating models in response to the ever-changing landscape. As AI’s significance in shaping the future workforce grows, health systems need partners who can tackle immediate automation needs while laying the groundwork for future AI expansion. Those slow to embrace AI and automation risk being left in the dust, much like Blockbuster in the age of Netflix. While it might sound dramatic, it underscores the gap between early adopters and those playing catch-up. Early movers stand to benefit from improved financial performance as mundane tasks are automated, freeing up human workers for more critical roles. With health systems expected to manage more digital than human workers in the next 5-10 years, vendors must guide hospitals through this shift, using automation for routine tasks while preserving the human touch where critical thinking and communication skills are required. - Navigating Revenue Cycle Complexity:
The revenue cycle presents a host of challenges, from shifting payer guidelines to mid-stream prior authorization changes. Payers never make it easy for providers to collect what they are owed, and technology partners must demonstrate their ability to adapt and navigate these complexities seamlessly. Providers are eager for AI and automation solutions that can understand and adjust to changing payer requirements. Vendors that offer end-to-end automation and accurate prior authorization determinations directly from payer portals will be the ones to watch. Health systems embracing automation should prioritize technology vendors with a track record in revenue cycle management, capable of navigating complex payer landscapes with ease.
In the ever-evolving healthcare landscape, staying abreast of emerging trends and technologies is essential. As highlighted at NAHAM, addressing staffing challenges, fostering adaptive partnerships, and navigating revenue cycle complexities are crucial for health systems aiming to thrive in the digital era. By embracing automation and AI technologies, and partnering with forward-thinking vendors, health systems can position themselves for success for the long-term.
- Controlling labor costs will be key to NFP hospital margin improvement, https://www.fitchratings.com/research/us-public-finance/controlling-labor-costs-will-be-key-to-nfp-hospital-margin-improvement-02-10-2023
- Short-staffed for the long term, a survey from Experian Health, https://www.experian.com/content/dam/noindex/na/us/healthcare/1549-StaffingSurvey-FINAL.pdf
