Q&A: Contemplating operational improvement solutions

Q: Are the time and resources spent implementing operational improvement solutions worth it?

A: Reviewing the data provided by operational improvement solutions requires time and effort. However, chances are it pales in comparison to the time spent (and often wasted) on outdated and inefficient workflows. Organizations are finding that these solutions can help reallocate staff in a low-risk, high-reward way that ultimately enables team members to work at the top of their license. For many organizations, this is an invaluable way to track your hourly workers and see where they’re spending most of their time.

In a recent American Medical Association report, “Cost of Caring,” the association revealed that labor costs far exceed any other area of hospital spending, with $893 billion spent on labor compared to drugs, supplies, and other expenses. In addition to not getting reimbursed, hospitals are facing increased pushback from government payers and administrators, leading to razor-thin margins and minimal opportunity to care for communities in innovative ways.

Operational improvement solutions have the power to save time and labor costs at the enterprise level. However, there is no better place to begin testing than in the revenue cycle management department. This level of insight is invaluable for hospital leaders, especially chief financial officers, who may be unaware of the most labor-intensive accounts or the payers consuming the most time and resources.

Editor’s note: This answer was excerpted from “Operational improvement solutions: Dispel myths and work smarter, not harder,” in the July 2024 issue of the NAHRI Journal. The NAHRI Journal is a quarterly journal featuring in-depth analysis and expert advice and is an exclusive benefit of NAHRI membership. Not a member? Join today.