Business Continuity
From the Annual HFMA Conference Floor: Embracing Digital Transformation for Success
In an ever-changing landscape, healthcare organizations find themselves at a critical juncture: How can they continue balancing financial uncertainties with the rising costs of travel and compliance such as the Stark Law and Anti-Kickback Statute? SAP Concur employees attended the recent Healthcare Financial Management Association’s (HFMA) annual conference to learn from and engage with industry experts who offered their perspectives on these challenges and insights on how healthcare financial officers can navigate them successfully.
Recognizing the importance of these issues, SAP Concur recently hosted a webinar focused on digital transformation and its implications for the Stark Law. For those interested, the webinar is accessible here.
To gain a deeper understanding of these challenges and explore potential solutions, continue reading to learn about the specific obstacles healthcare organizations face.
Challenge One: Funding Sources and Enhancing Cost Transparency
According to the HFMA Outlook Survey Report 2023, one of the most pressing challenges for healthcare professionals in the coming year is funding sources. This includes tackling the complexities of costs, ensuring price transparency, and managing budget pressures. Healthcare organizations are grappling with maintaining cost-effectiveness while providing quality care.
The cost-effectiveness of healthcare services has become a significant concern for individuals, prompting healthcare providers to explore innovative solutions and streamline processes. As individuals increasingly seek cost-effective healthcare options, providers must find innovative ways to balance financial sustainability while delivering high-quality care.
Challenge Two: Rising Airfares and Room Rates Complicate Travel
“Live-event attendance appears poised to be a big growth driver…” (Deloitte Insights).
Corporate travel has witnessed a resurgence, but it comes with its challenges. Deloitte Insights revealed that professionals are facing higher airfares and room rates. Financial considerations remain at the forefront of healthcare organizations’ minds, especially considering the pandemic’s aftermath. Healthcare professionals attending conferences and industry events, which are expected to drive travel growth in 2023, may face increased expenses due to these pricing conditions. The rising costs of travel impact on healthcare organizations, affecting their overall operational costs and budget allocations, and needing careful resource allocation, financial planning, and cost management strategies.
Challenge Three: Navigating Compliance Considerations for T&E (Travel & Expense) Policies
Developing T&E policies takes on a renewed significance as healthcare organizations strive to adapt to the evolving landscape. Compliance considerations related to the Stark Law and Anti-Kickback Statute were highlighted during the conference.
Common factors to consider in strategic planning for hospitals and health systems are:
- Provider and payer consolidations
- Value-based care payment initiatives
- Alignment strategies with physicians and other providers
- Compliance with the Stark Law and Anti-Kickback Statute (this includes requirements, exceptions, and safe harbors)
These factors are crucial when developing strategic initiatives involving healthcare providers and administration. Recent government settlements, investigations, and proposed changes to these regulations affect healthcare operations and strategic planning, requiring organizations to stay vigilant and ensure compliance.
Challenge Four: Overcoming Staffing Issues with Technology
Healthcare, like many other industries, hasn’t been immune to staffing issues. As the hospitality and travel industry grapples with challenges, the healthcare sector also faces workforce shortages. An HFMA panel discussion illuminated the severity of the situation. The panel discussed significant shortages that hospitals and health systems are experiencing in their revenue cycle management (RCM) workforce. This shortage adds pressure to the existing clinical workforce crisis that healthcare organizations must navigate.
Implementing improved processes through harnessing technology is crucial to mitigating the negative impact on productivity. The panel discussion focused on how technology can enhance in-house and remote processes and workflows, offering potential solutions to address healthcare staffing issues and improve operational performance.
The Solution: Digital Transformation Is a Necessary Step for Healthcare Organizations
In today's rapidly evolving healthcare landscape, the need for digital transformation has become clearer than ever. According to a survey conducted by Deloitte, a significant percentage of workers in the healthcare industry express dissatisfaction with their day-to-day work practices, work-related technology, and the level of autonomy they have to make decisions. Only 42 percent of workers reported being satisfied or very satisfied with their work practices. An even lower percentage of 38 percent expressed satisfaction with work-related tools and technology and autonomy to make good decisions. Digital transformation in finance plays a crucial role in addressing these challenges and enhancing overall resilience in the face of disruptive forces.
Implementing digital transformation initiatives in healthcare finance brings numerous benefits:
- Healthcare providers operate within an evolving regulatory environment with thin margins, making the need for digital transformation in finance even more critical. Healthcare organizations can run better by optimizing finance operations and refining team structures. Using ROI-driven technology allows them to streamline financial processes, enhance decision-making capabilities, and reduce overall costs.
- Providing employees with the tools and technology lets them perform their jobs efficiently and effectively. This enablement, in turn, can improve job satisfaction and productivity among healthcare professionals.
- Furthermore, digital transformation enables healthcare organizations to navigate regulatory complexities more effectively. By optimizing financial systems and automation, they can ensure compliance with changing regulations, reduce the risk of errors, and improve overall financial accuracy and transparency.
The healthcare industry must embrace digital transformation in finance to address challenges and drive resilience. Areas of focus are navigating funding sources, managing rising costs, and ensuring compliance with federal regulations. By leveraging technology, streamlining financial processes, and optimizing team structures, healthcare organizations can enhance operational efficiency, reduce costs, and deliver better outcomes for their employees and patients.
A digital transformation is no longer an option; it’s a necessary step toward building a more resilient and thriving industry in today's healthcare landscape. Learn more about digital transformation and Stark Law here.
To learn more about SAP Concur solutions for Healthcare visit our industry page.