Published: 16 April 2020
Analyst(s): Sachin Dev
The COVID-19 pandemic is straining hospitals’ finances by impacting their revenue streams and depleting cash reserves. U.S. provider CIOs must use this presentation to educate IT and business leaders on reimbursement pitfalls, and take proactive action to improve cash flow.
The COVID-19 pandemic is draining providers’ cash reserves at a much faster rate due to additional staffing, increased paid overtime and sick time, and higher cost to secure medical supplies and equipments.The projected revenue increase from higher patient volumes will not be sufficient to offset the total cost of COVID-19 patients due to increased length of stay and lower reimbursement. The revenue from other profitable service lines such as elective surgeries is plummeting, as hospital beds are repurposed to support COVID-19 patients. Moreover, providers will soon face significant challenges in maintaining their cash flow due to factors such as increased uncompensated care and delayed payer payments. Many provider CFOs are concerned about their cash flow, as the payers’ reimbursement requirements for COVID-19 are unclear or not fully implemented.
HDO business and IT leaders must implement every tactic they can to increase revenue and lower costs, maximizing and expediting the reimbursement for each COVID-19 patient admission to secure much-needed cash. This presentation addresses both high-level issues and the specific actions IT teams and business stakeholders must take to improve revenue cycle performance. CIOs play a crucial role in enabling consistent cash flow by aligning and implementing these essential short-term tactics to speed reimbursement.
Gartner interacts regularly with healthcare provider clients and industry leaders. Their observations, challenges and successes form the primary source data for this research. Additional evidence was obtained from vendors in this space, industry inquiries, previous Gartner research, public sources and direct experience.
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