COVID-Related Revenue Challenges and Staff Shortages Generate a Healthcare Crisis
Since the start of the pandemic, the healthcare industry has faced unprecedented challenges, and they’re taking a financial toll. In addition to revenue cycle disruptions, most are dealing with chronic staff shortages. It will take time and specific strategies for healthcare systems to recoup their financial losses. Meanwhile, the pandemic continues.
Where we are
According to the AHA, U.S. hospitals are on track to lose approximately $54 billion in net income in 2021, even with aid from the CARES Provider Relief Fund. Factors contributing to the losses include:
Fewer outpatient visits
Canceled elective procedures
Higher costs for labor, drugs, personal protective equipment (PPE)
Expensive treatments for COVID-19 patients
Patient financial difficulties
But the most significant contributing factor is the shortage of qualified, experienced professionals to staff healthcare facilities. Shortages extend from doctors, nurses, and other clinical providers to essential administrative staff — including medical coders and billers. Filling empty positions will require changes in facility operations to address the fundamental reasons for the ongoing shortage.
Combating the shortage
According to a survey by Talk Space and The Harris Poll, there are a number of reasons employees are leaving healthcare — and many are rooted in problems with hospital leadership. From unfulfilled promises from employers — such as provisions for self-care and mental health resources — to a general lack of strong, supportive management, exiting healthcare staff cite leadership issues in six of their top 10 reasons for leaving. Most also claim improved leadership would help with retention.
The relentless stress of working in healthcare during a pandemic — and the frequent burnout that results — is also cited as a major reason for the dramatic spike in turnover rates. Taking steps to alleviate staff shortages can reduce the stress caused by long shifts, lack of help, and general fatigue. Incentives and bonuses are a good start for both recruiting and retention, but addressing the underlying problems is the only way to stem the exodus in the long term. In the meantime, facilities must monitor their patient census closely to determine minimum staff requirements for providing safe and adequate medical care, and consider employing retired healthcare personnel and enlisting students, or even volunteers, to compensate for shortages.
Mitigating financial loss
The first step in reviving the healthcare revenue stream is getting patients back into regular care. Providers and facilities must build trust with thorough safety and sanitation measures. Incorporating telehealth services in place of in-person visits can get cautious or apprehensive patients into the virtual office and help to rehabilitate revenue streams.
Streamlining revenue cycles with technology, such as electronic health records, artificial intelligence, and computer-assisted coding, is an additional solution to increase efficiency and ease administrative workloads. But above all, providers must prioritize patient relationships.
For help managing your facility’s revenue cycle during good times and bad, contact the professionals at HRG.
