Medcare Medical Billing Services (MSO), with its 30+ years of industry experience, understands that many hospitals struggle to sustain long-term sustainability. Positive financial margins are a way to keep a healthy cash flow, invest in new technology and improve patient care. Medical Billing Solutions can help your hospital or surgery center remain financially sound by monitoring these five indicators.

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1. Trends in Provider Utilization and Aggregate Volume

These numbers give a comprehensive view of the hospital’s finances and are useful for managers, department heads, and others.

2. Operating Ratios

Your expenses are a part of your net operating income. Also, you must monitor your labor, supply and purchased service costs.

3. Labor costs

Check the cost of patient volume regularly to determine if they are being met. You can compare the productivity of each department to their staffing targets. This includes overall FTE per adjusted bed target for your hospital.

4. Patient Revenue Indicators

These numbers show your bad debt percentage as well as the net to gross percentage for each payer class. Examine the payer mix to determine if any shifts need to be addressed.

5. Liquidity Ratio

As a percentage of your net income, these should cover net days in patient receivables and cash collections. You must determine the steps you need to increase your cash flow.

How to Improve Your Hospital’s Performance

You can build a financial roadmap by tracking the data points above and creating and implementing strategic plans.

Seek Federal Funding

Many rural hospitals were able to receive federal funding during the crisis. Hospitals should be able to manage and limit the use of funding, regardless of whether it is a PPP loan, CARES ACT grant or a PPP loan. Sometimes, the federal government may require hospitals to record fund usage. Hospitals should monitor the use of these funds in all cases.

Understanding the “Why”

Answering the question “Why?” is key to improving hospital performance. This will help you identify the root cause of your financial distress. This process allows for clear communication about your hospital’s goals, expectations, and helps you make the desired changes. You will be better equipped to pinpoint the root cause of your problems by gathering all information and setting clear goals.

Stay competitive

Technology is always changing. To remain competitive and relevant, you must keep up with the latest technology. Telemedicine is an important way to remain on the cutting-edge, especially in the COVID-19 crisis. Telehealth is quickly becoming a standard in healthcare delivery. Every hospital should adapt to this trend and make the necessary changes to be able provide virtual care.

You can fully use resources

Building new facilities is impossible due to the unprecedented changes and increased expenses. However, you can maximize your resources. You can rent out space or make use of it to care for more patients. It’s often the money you save that counts. Making simple changes to improve your communication systems can help you increase patient satisfaction and ensure better response time.

Promote Wellness and Environmental Programs

Employees are happier and healthier when they have access to wellness programs. This is a way to implement “self-care”. Healthcare providers can be more effective in taking care of their patients when they are healthy. Healthy staff can also reduce the chance of absenteeism and give your hospital a positive image.

Green initiatives can be a complement to your wellness programs. You and your community will be benefited by your efforts to create a healthier environment. Although environmental programs can be costly upfront, the benefits are long-lasting. According to the American Hospital Association’s guide, hospitals and care systems can have a significant impact on their finances by cutting down just 5-10 percent of energy bills.

How our Medical Billing Service can help

Healthcare billing solutions is a service that assists hospitals with evaluating their processes and workflows. Medcare Medical Billing Services can provide value to all healthcare organizations. Medcare Medical Billing Solutions (MSO) allows you to concentrate on patient care and maintain your financial independence. You will see exactly what we see, thanks to our transparent guarantee. Our customized medical billing service provides clear and detailed reports that will help you make the right financial decisions for your hospital. Your hospital can also be freed from the tedious task of billing so your business can thrive. All your energy and focus will be directed towards your patients. When all parties work together toward a common goal, rewards will increase.

Medcare Medical Billing Services (MSO), Partner with Medcare

Our first priority, just like a doctor’s primary priority, is the patient. We also want to make your facility as profitable as possible. Are you ready for better financial and profit margins? Medcare Medical Billing Services (MSO), can help you learn more about medical billing and request a free financial health check.