Flexibility is key to handling unexpected expenditures

Jul 22, 2015 | Hospital Finance Efficiency

Sometimes the best laid plans don't come to pass. In a whitepaper titled "Scenario Planning for the Agile Healthcare Organization," Jay Spence of Healthcare Finance News explains that a lack of flexibility to accommodate changing financial scenarios can be the downfall of health care organizations like hospitals, clinics and private practices. 

"The shifting sand underneath our feet is particularly problematic for planners," explains Spence. "All too often organizations budget or forecast with one economic (or underlying) scenario in mind. Finance organizations often feel a great sense of accomplishment in completing 'the budget' or 'the forecast'. It's understandable. The budget process for most companies is daunting."

Unexpected expenditures can seemingly come out of nowhere for medical facilities. Whether that's failing infrastructure, unforeseen legal costs or other operational issues, it's important for a center's revenue cycle to be powerful enough to sustain unexpected stress. When bills aren't collected upon in a timely manner, facilities may lack the resources to address pressing issues that arise without warning. 

When organizations are unprepared to meet these costs, they may go into debt or face other difficult decisions. With a healthy and expedient revenue cycle, medical centers are best equipped to handle whatever difficult circumstances they encounter. This helps ensure the long-term viability of operations and maximizes a facility's ability to deliver a high quality of care to patients. 

One of the best ways to improve revenue cycle management in your care facility is to outsource receivables management. This allows collections, billing and reimbursement offices to run more smoothly and efficiently as more bandwidth is freed to focus on high-priority claims in a caseload. Contact Professional Medical Services today to learn more about how our solutions can improve finance efficiency at your medical enterprise.