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| The Monthly Pulse |
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| Tech Is a Worthy Investment for CEOs, Even if ROI Is Not There Yet
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| The Story |
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| While the overwhelming majority of healthcare leaders (96%) say that technology is a worthwhile investment, 71% who have implemented it have yet to see a return on investment (ROI). Part of that may stem from the fact that the payoff is challenging to quantify. Still, most CEOs agree that technology reduces administrative burden in their organizations, thereby keeping staff happier and giving them more time to interface with patients, which could ultimately reduce turnover. |
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| What You Should Know |
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| While the healthcare sector has historically been slower to adopt new technology, CEOs recognize that now isn’t the time to lag behind. Technology can help to address many of the financial and workforce challenges healthcare systems are currently facing, even if the payoff isn’t immediate. From driving efficiencies and empowering better decision-making to improving the patient experience, the results will come over time. To ensure that technology investments are indeed working as they were intended to, healthcare organizations should focus on breaking down data silos to achieve greater visibility into key metrics.
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| 4 Ways CFOs Can Battle Low Reimbursement
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| The Story |
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| While healthcare margins have suffered due to a number of factors, an important one is low reimbursement for resource-intensive services. These services tend to fall into three categories: chronic disease management programs, mental health services, and complex surgical procedures with lengthy recoveries. Fortunately, there are several approaches CFOs can use to address the issue of low reimbursement.
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| What You Should Know |
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| First, healthcare organizations must streamline operations by focusing on resource allocation, bed turnaround times, and post-acute patient placement to reduce costs. Next, they can negotiate with payers for fair reimbursement for source-intensive services. It might also be worthwhile to diversify services to include higher-reimbursement specialties and procedures, which can help to balance out margins. Finally, utilization management processes can be deployed to use resources more efficiently, with the goals of reducing costs and enhancing patient care.
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| Physicians grow louder on noncompetes |
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| The Story |
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| Amid the ongoing shortage of healthcare professionals, physicians are pushing back against non-compete clauses. Up to 45% of physicians are bound by a non-compete clause of some type, which restricts physicians trained in certain specialties from practicing in a nearby area if they leave a healthcare organization. The American Medical Association asserts that allowing physicians to work for multiple hospitals could improve coverage within communities. |
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| What You Should Know |
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| Non-compete clauses can make it challenging for patients to find specialty care in rural areas, and the Federal Trade Commission has increased scrutiny of such clauses across all sectors, claiming that they reduce wages and negatively affect competition. Healthcare organizations feel differently, however. The American Hospital Association, for example, notes that clauses are put in place to protect investments hospitals make to recruit doctors. Currently, non-competes for all employees are banned in three states: California, North Dakota, and Oklahoma.
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| Leadership Reflections |
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Preparation, Pacing, and Destination
I recently traveled to Montana with some skier friends. I am not a downhill skier, so I was looking for a different outdoor activity. One such activity involves climbing the ski slope on snowshoes and I was fortunate to have the company of several experienced uphill enthusiasts to accompany me in this pursuit. Due to my lack of experience and youthful enthusiasm, they recommended that I start in the front of the pack. (To be clear, my “youthful enthusiasm” is said in jest.) So I began the ascent covering just over 2,000 feet in a two-mile hike. As is not uncommon on Whitefish Mountain, the visibility was limited due to cloud cover. In addition, the steepness of the grade and windiness of the slope contributed to short lines of sight to the next milestone. In other words, it was difficult to have a sense of where the final destination was.
As a result of my lack of experience, the limited visibility, and the high altitude, I found myself quickly short of breath and in need of some calories and water. I had planned enough to meet those needs, and the experienced hikers provided electrolytes for my water and offered perspective around the journey ahead. They explained that we were about 5-10% into the total hike and the steepest portion of the climb was the bottom section. Setting a pace that allows a hiker to carry a conversation is a measured approach that helps ensure you can keep moving vs. a pattern of hiking, tiring, resting. With a refuel and this wise guidance, I was able to maintain a slower, more methodical pace that carried me to the lodge at the top of the mountain.
This experience was a reminder of the importance of preparation, resourcing, timing, pacing, and understanding our final destination in our strategic planning and execution processes. Without a sense of the path ahead and the location of the destination, it is challenging to measure progress or success. Knowing the destination informs resource allocation decisions around time, money, and human capital. There may be legs of the journey that require a sprinter’s mindset. For longer term success, resilience and a more measured, steady approach are important. And of course, having others there to encourage and support us along the way never hurts, either.
Have you experienced challenges as a result of insufficient information related to the goal or destination? What strategies have you utilized to overcome these obstacles?
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OR Management Summit |
| Mon., May 20 - Tues., May 21 |
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| HealthLeaders CEO Exchange |
| Mon., May 20 - Wed., May 22 |
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| thINc360 The Healthcare Innovation Congress |
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| Healthcare Financial Management Association 2024 Annual Conference |
| Mon., Jun. 24 - Wed., Jun. 27 |
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| 2024 American Hospital Association Leadership Summit |
| Sun., Jul. 21 - Tues., Jul. 23 |
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