OVERVIEW
As we’re nearing the end of the second year of the COVID-19 pandemic, there have been significant impacts, both financially and operationally, on the American business landscape. The healthcare industry, including its unique revenue cycle function, has not been spared these disruptions. Such shifts in the normal paradigm can create stress and confusion, which can lead to a lack of focus and short-term, knee-jerk decisions that are not focused on the real goals. While the pandemic has, in fact, resulted in real changes in the revenue cycle operating model, it has not changed the fundamental aspects of managing performance and delivering results.
WHAT’S CHANGED?
First of all, there has been a material change in the financial performance of healthcare organizations. The pandemic, related lockdowns, and other safety measures resulted in drastic reductions in patient volumes, elective surgery procedures, and staffing pressures. These factors directly impacted the revenue cycle through decreased billed revenues and cash flows, as well as deteriorating performance metrics.
Second, the pandemic very quickly impacted the day-to-day operating model in all industries, including healthcare and the revenue cycle in the form of a rapid shift to a remote/work-from-home model that involved the majority of traditional back-end revenue cycle staff. Almost overnight, basic elements such as daily staff interactions, meetings & communications, and staff performance monitoring presented a much-changed dynamic and challenge for revenue cycle leaders. While healthcare organizations focused on critical aspects of remote work, such as data security and equipment needed to support this new model, revenue cycle leaders found themselves faced with the challenge of staying connected with staff and continuing to deliver unchanged performance expectations.
WHAT HASN’T CHANGED?
As noted in the last sentence above, one thing that did not change was the level of performance expectations that healthcare organizations have on their revenue cycle operations. However, and more importantly, the fundamentals of managing performance and delivering outcomes within the revenue cycle have not changed.
As mentioned earlier, situations like the pandemic can serve to knock people off their normal course and become reactionary in decision making, and in some cases be used as an excuse for diminished performance. While a remote workforce model presents some logistic challenges, it does not change the basic principles of staff oversight and performance management. These principles fall into two categories: Philosophical and Practical.
The Philosophical principles of revenue cycle management involve three tenets:
The Practical principles of revenue cycle management involve three pillars of driving staff performance:
SO NOW WHAT?
Overall, the Philosophical and Practical elements of revenue cycle performance management have not been changed by the Covid-19 pandemic. However, given the shift to a more remote operating model, effectively implementing and managing these core elements now has some unique, logistical challenges. So how do you successfully work through this environment and come out the other end a winner? For that I’ll leave you with the following thoughts and predictions:
Kevin Sharlow, Managing Director
Avid Consulting Group, LLC
317.495.5938