Value-Based Reimbursement Has Only 13% Hospital CFOs Onboard

 Erika Regulsky Billing & Collections, CFO's Corner, Medical Billing, Most Popular, Most Recent, News

Social Shares

87% CFOs’ have no clue about Value-Based services, Are you one of them ?

When it comes to managing evolving business and care delivery changes, hospital CFOs do not seem to have the financial planning tools, according to a survey.

VALUE-BASED REIMBURSEMENT Cfo Survey

When it comes to managing evolving business and care delivery changes, hospital CFOs do not seem to have the financial planning tools, according to a survey.
Value-based reimbursement and care delivery models have yet to gather full-steam, as Healthcare CFOs do not have the financial planning tools to manage developing business and care delivery transformation, according to a new survey.
In the process of understanding the roles and progress with performance management goals and challenges, consulting firm Kaufman Hall recently surveyed CFOs and other senior finance executives from more than 160 hospitals, health systems, and other healthcare organizations.

The outcome of the survey wasn’t as anticipated, in fact it had worrisome news, with only 13 percent of organizations prepared to manage developing payment and care delivery models. Compared to the previous year, which was 15 percent, it has certainly gone down this year.

Another aspect of the survey shows that only 23 percent of hospitals appear to be confident in their organization’s capabilities of easily adjusting their strategies and plans. Percentage-wise, this too has gone down, compared to last year’s 25 percent.

Performance Management Processes and Tools for Financial Executives

The consulting firm in it’s report commented that this data represents red flags that should be of serious concern to healthcare organizations. Elaborating, the report points out that senior finance executives must understand what is occurring as business circumstances change, and how these changes will affect the business strategy of their organization. Performance management processes and tools will give them clear insights to appropriately make course corrections for achievement of their strategic objectives.

Not having access to the necessary data and analytics tools to get a firm grip of new business conditions, the hospital CFOs and other senior finance executives are limited in their understanding of how value-based reimbursement will impact the hospital’s organizational strategies.

Using Financial and Operational Data for Implementing Strategic Decisions.

According to 96% of respondents, their organizations should be doing more to make use of financial and operational data for implementing strategic decisions.
Increasing pressure to have greater insight into how financial results influence business strategy were reported by 94 percent of respondents, according to the survey.
Other than the data that reflects the financial health of an organization, the hospital CFOs want access to the data resources related to other dimensions of the organization.Since value-based reimbursement and other developing business conditions are influencing finance leaders to realign their operations, data related only to financial performance will have limited leverage.
While a vast majority (86 percent) of CFOs still manage financial health, an equal number (80 percent) manage other dimensions of organizational performance, such as patience experience, care quality, and clinical outcomes that are associated with value-based reimbursement arrangements.
In order to succeed in value-based reimbursement contracts, the providers must enhance their performance across most of these organizational performance dimensions. Implying that finance leaders must get involved monitoring more than the traditional metrics such as financial health, operational efficiency, and strategic growth.
The report states that a comprehensive view of performance requires the integration of relevant data from disparate sources, and the identification of a manageable number of metrics to track for each initiative within and across dimensions.

Having all Required Information & Data Reside in One System

Elaborating broadly, the report states that leadership teams should consider having all required information reside in one system, enabling access to all managers and leaders. This will build commitment to sustainable progress monitoring, leading to the achievement of improved plans.
The survey points out that data analytic tools are crucial in managing and developing a healthcare business environment. But hospital CFOs have yet to perceive the full potential value of these tools.
Over 60% of respondents in the survey expressed the need to create better dashboards and visualizations, besides the capability to integrate data from multiple sources into a single report.
Limitations accessing clean, consistent, and trusted data was highlighted by 50 to 59 percent of participants. Expressing preference for reports that were concise and easy to understand the underlying details.

Lack of Access to Clean Data is a Barrier to Data Analytics Adoption

The significant barrier to data analytics adoption is the lack of access to clean data. Authentic and trustworthy data is crucial for finance leaders to trust the information that will be used to inform business decisions and strategies.
Further, the survey points out that limited access to data is prompting most hospital CFOs to rely on spreadsheets for strategic, financial, and tactical planning decisions. Spreadsheets were being used by twelve percent of respondents, as their primary budgeting system, almost 74 percent respondents reported using spreadsheets to supplement their core systems.
Over seven percent of finance leaders said that they were very satisfied with their performance management reporting, according to the survey.

Finance Teams Must Play a Crucial Role in Their Organizations

Concluding, the report specifies that given the demands of the changing business environment, the healthcare CFOs nationwide should be critically examining the role they and their finance teams play in their organizations. A singular focus on directing or managing financial operations and the related control/monitoring function is not sufficient going forward. The survey advocates the view that finance executives must be integral to the development, execution, and monitoring of the organization’s vision and strategy. They should have access to the full breadth of data and analytics required for performance management in healthcare.

 

 Appointment Scheduling using Robotic Process Automation

Subscribe to Billing Paradise Newsletter


Social Shares

I’m a multi-certified revenue cycle management professional and compliance officer with 20+ years of experience. I contribute articles to leading healthcare publications and journals. I am currently working as Senior Transition Manager, in BillingParadise headquartered at Diamond Bar, California. BillingParadise offers Medical Billing Services that intersect perfectly with the EMR/Practice management system you use.BillingParadise has offices in New Jersey, New York, Florida, Georgia, Minnesota, and Texas.


Get paid Three times faster with our 24/7 medical billing services.

Work with medical billers who understand your EHR's billing process backwards and forwards

Avail Free RCM Audit Worth $2,000! Check out 19 different KPI reports that stops your cash flow.