Three Ways to Speed Your Transition to Value-Based Care
As the healthcare industry makes the long, challenging transition from fee-for-service models to value-based care, some health care providers and organizations are naturally going to feel intimidated by the journey ahead. Value-based care, after all, offers no profit guarantees, and it requires some potentially daunting new techniques to be learned and tactics to be used.
The benefits of transitioning far outweigh the negative aspects. However, the success of each independent organization depends on the ability of its stakeholders to collaborate in their efforts to achieve the goals they have set for themselves.
Although a thick fog of skepticism still lingers over this emerging trend, it’s something that every single healthcare organization will have to do eventually. The train has left the station. So let’s take a look at three ways healthcare organizations can transition to value-based care successfully by using proven workflow strategies.
The three most productive ways to use workflow strategies to transition to value-based care smoothly are as follows:
- Find Revenue Leaks
- Capture and Report Data
- Improve Patient Retention
Find Revenue Leaks
According to the CEO of Lion & Company CPAs, Marc Lion, the average healthcare practice is losing anywhere from ten to fifteen percent of its profits due to leakage. This is, of course, a massive amount of profit to be losing but it can be mitigated by tracing the leaks back to their source. While there can be many different factors combining to cause revenue leaks, one of the most common culprits is debt management.
Reducing the amount of bad debt by a mere two percent can end up delivering many thousands of dollars back to the bottom line of a healthcare practice. In addition to debt management, sorting out payment methods can also help to plug up revenue leaks. Many healthcare providers openly state they would prefer to receive their payments through an electronic funds transfer, but nearly all of the providers who report that also indicated that they were receiving paper checks as payment as well. This can be mitigated by arranging revenue cycles so that consumers can give more input.
Some other ways to improve debt management include:
- Getting patients insured and working to reduce self-pay patients
- Collecting payments efficiently
- Streamlining the financial clearance for patients so they can have the benefits accurately explained to them before they receive their care
- Having payers meet their negotiated reimbursement rates so that reimbursement can be maximized
Organizations can also help plug revenue leaks by ensuring that their physicians are referring patients to their facilities and not the facilities of other healthcare organizations. This could save some organizations up to 40 million dollars per year.
Capture and Report Data
The timely reporting of (clean) data is often hindered by challenges involving agreement between stakeholders, compliance requirements, and a lack of standardization. All of these factors combined makes effective data use very difficult. The survivors will take a few steps. They will:
- Improve the usage of their organizational/clinical/all data
- Reduce the workload put on their IT infrastructure by bringing the data straight to their analysts
- Enhance productivity by facilitating better utilization of their data and lessen the amount of time required to clean/align/manage it
- Leverage their data by simplifying its readiness for high-powered analytics and visualizations
In other words – be good stewards of your data. It will be your source of competitive advantage. Soon.
Improve Patient Retention
One of the most critical workflow strategies for healthcare organizations looking to make the transition to value-based care is improving patient retention.
Making sure that there is a high level of price transparency is a surefire way to help stabilize the cost of healthcare for patients. This naturally leads to a higher patient retention rate when patients feel they are getting exactly what they are promised. Of course, this transparency in price is not possible unless a system for collecting, organizing, and presenting price reporting to employees and employers is at hand.
Improving both the quality and quantity of patient interaction will keep patients engaged and help to keep a bead on their satisfaction levels as well. A smart healthcare organization will do everything it can to raise the levels of patient satisfaction.
Having comparative performance measures data readily available to physicians and making sure that they have the confidence to dig deep into it and make assessments based on their findings is essential to helping them become champions of the performance assessment side of the program.
Value-based care is coming to all healthcare organizations sooner or later, and while it is certainly a major task moving to this new paradigm of incentives and payments, there are effective workflow strategies that can help. Providers and organizations who use the three main techniques for successful transition laid out in this article will find that their bottom line, patient satisfaction, and overall success will begin to improve as they move forward in this ever-evolving industry.