Health Systems and Financial Recovery:
A Challenging Balancing Act Ahead
The first six months of the year brought the “perfect storm” of financial disruption – loss of elective procedures, reduced patient volumes and increased costs to manage dual systems of care for both COVID and non-COVID patients. Amid the fallout, hospitals face an immediate need to reduce costs by year-end.
The urgent need to respond to the magnitude of recent losses and new economic pressures to invest in maintaining dual systems of care create a complex series of trade-off decisions.
In this report, we highlight key findings from our Financial Recovery Survey and considerations for healthcare provider organizations as they forge ahead into an uncertain future.
Executives say cost reduction is critical to recovering from the initial shutdown and mitigating future uncertainties.
Health system leaders who act quickly have an opportunity to be proactive in this next phase of the crisis and build back the balance sheet. Resizing the enterprise to new volumes, restructuring costs, realigning operations and establishing the right infrastructure to support and monitor change will be required to return margin.
In February 2020, we published a paper, “Building an Effective Cost to Collect Strategy.” The paper is focused on guiding revenue cycle leaders to finding the best way to maximize their yield. The COVID-19 pandemic has put many healthcare provider organizations in an unprecedented, compromised financial position that will take a great deal of time to recover from.
In times of crisis, it is often challenging to look beyond the emergency at hand. However, in the post-COVID-19 surge landscape, health systems have no choice. Here we summarize the current market state and highlight five imperatives that health systems must successfully navigate in the new reality.
by The Chartis Group and Jarrard
A million a day. For a $1 billion health system in the COVID-19 Era, each day that passes means a loss of almost $1 million.
There's no returning to the financial plan that existed before COVID-19. Today, financial recovery requires bold, immediate actions to position your organization for the future.