In this article, you’ll learn and discover how hospitals increase revenue.
In the era of healthcare restructuring, organizations strive to increase hospital profitability by altering their existing business practices and by delivering better quality care. Hospitals can enhance their profits by limiting unnecessary testing, reducing patient readmission rates, and improving patient satisfaction. They can also boost their revenues by improving their infrastructure, which means investing in the latest technologies and developing their healthcare revenue cycle process.
Improve Patient Satisfaction
A satisfied patient is more likely to return to the same hospital for his or her next treatment. Greater patient satisfaction is reflected in improved hospital margins. Patients that are satisfied with their initial interaction with office staff tend to exhibit a more positive perception of the healthcare facility and provider than unhappy patients. Unsatisfied patients are more prone to complain and have a completely negative perception of the facility, which results in staff having to spend more time attempting to resolve conflicts than actually administer medical care.
Reduce Hospital Readmissions
High rates of readmission can prove costly to a healthcare provider. Moreover, attempting to reduce the readmission rate and the number of patients revisiting the hospital for the same condition is in the provider’s best interest. Also, lower readmission rates ensure that hospitals avoid getting penalized by the authorities. Hospitals can prevent higher rates of readmission by implementing greater care management and offering quality follow-up care. As a result, costs pertaining to higher readmissions rates are bound to reduce.
Reduce Needless Testing
A hospital’s profits can increase if their facilities were able to minimize the number of needless tests they usually administer. Hospitals can eliminate unnecessary testing in many cases by increasing the amount of time they spend talking with patients regarding their medical conditions and needs. A lot of the time, it is patients that request that specific tests be conducted even if they are not actually required. Also, when medical practitioners do not have enough information regarding a patient’s medical history or condition, they may believe that administering more tests will take care of that deficit. Improved communication between medical practitioners and patients helps reduce the need for unnecessary testing. Also, implementing an effective laboratory system can also help with this effort and effectively help increase revenues.
Understand RCM Performance
Hospitals have to have a thorough understanding of their healthcare revenue cycle process to identify hidden weaknesses and opportunities. A clear understanding of their practice’s revenue cycle can help them better evaluate where to allocate their resources and funds. It is also critical for healthcare providers to identify operational bottlenecks. One way to do so would be through data analytics. Leveraging RCM analytics could help the revenue cycle become more transparent by using vivid visualizations in the form of interactive charts or graphs to identify critical areas of weakness. In this way, healthcare providers can use robust reporting and dashboards to optimize their RCM. It is almost impossible to manage what you do not measure so it is vital that hospitals have a good grasp of their RCM performance to increase their revenues.
Invest in More Sophisticated IT Systems
One more way that hospitals can increase their profits is by upgrading their technologies in order to make healthcare revenue cycle more efficient. In some instances, hospitals are leveraging clinical decision-making support systems to deliver more desirable financial outcomes. These support systems enable providers to monitor laboratory utilization to help them significantly reduce the number of unnecessary tests, while also improving the quality of patient care. They can also help healthcare providers reduce the number of errors that are made during prescription disbursement. When hospitals use more sophisticated IT systems, less money is wasted on reordering the right prescriptions.
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