With all the buzz about data in healthcare, it’s easy to immediately think of clinical data—accountable care, population health, managed care, etc. Not that I’m jealous…but I feel like revenue data is the ugly step sister of analytics. It might not be as sexy as clinical data, but when it comes to improving the bottom line, revenue data has the inside track. Not to mention, as we get closer and closer to value-based reimbursement models…revenue analytics will be the star of the show!
When trying to trim the fat from your organization to either reallocate funding, prepare for 2016 projects, or just reduce operational costs, utilizing data analytics identifies an organization’s low-hanging-fruit that shows itself in the bottom line. Just like with all data analytics, there’s a formula for identifying both weaknesses and areas for improvement. Our team just launched a brand new data analytics solution, which has a pretty standard approach that, with the right analytics tools, any organization can use to better optimize their cash flow.
Analyze Key Indicators. This is the process of taking a close look at your revenue cycle to review key indicators—by doing so, you’ll find where your revenue cycle has leakages, as well as where it’s strengths are. This birds-eye-view of your cash continuum will ready your organization for optimization and protect margins.
Identify Organizational Metrics. Using data metrics and tools from various places (i.e. DNFB, AR, CDM, CDI, DSO), unique reporting tools can identify elements of the revenue cycle that are performing subpar, and highlight opportunities for improvement. This is the meat of the analytics part, and does require some advanced analytics toolsets to accomplish.
Resolve Revenue Issues. After you’ve seen the metrics and identified trends and areas of improvement in your revenue, you can work with your team to then resolve those issues and start seeing immediate cost savings.
Monitor & Measure Results. Continuing to practice these efforts is essential for the streamlining of your revenue cycle—each fiscal year, each merger or acquisition, changes in systems, you name it, can affect your revenue cycle’s efficiency. Just like you wouldn’t go to visit a doctor once every twenty years, you shouldn’t neglect your revenue maintenance.
Deploying revenue analytics initiatives in your organization today not only gives you tangible revenue improvements and cost savings, but also prepares your organization for value-based payment reform in the future. It may not be top-of-mind right now for many, but for the few who do utilize revenue analytics have a healthy, holistic view of their revenue continuum, and will be set for the next generation of payment reform.