Hospitals are losing their workers, and they need to start being extra careful about preserving their hiring budget.
A recent 2017 survey from Leaders For Today (LFT) examined the state of employment in the healthcare industry, and found that hospitals have one of the most aggressive turnover rates across industries. That churn isn’t limited to specific departments, either; from C-level administrative staff to front desk registrars, there’s a revolving door to be found.
- Turnover rates across roles fall between 62-69% in a five-year period
- Non-clinical staff are more likely to leave in the near-term, while clinicians are more difficult to predict for
- About half (47.7%) of the healthcare workforce are planning to retire in the next ten years, about twice the number of professionals in other industries
What does this mean for healthcare providers? Hiring costs are getting a whole lot steeper, and the candidate pool for qualified clinical professionals is drastically narrowing.
Tough choices are going to be made about hiring one candidate over another. Since hospitals really don’t have a business without the appropriate clinical staff, physicians and nurses are going to take precedent over non-clinical staff.
The Biggest Drain on Hospital Hiring Budget
Let’s revisit one of those points from earlier: non-clinical staff are about twice as likely to seek different job opportunities after about two years. Staffing for non-clinical personnel in the billing, revenue cycle management, and accounts receivable department won’t come at as steep a cost as a single physician hire. However, making that repeated investment leaves less rainy-day budget for when a hospital is desperate to staff a clinical position, and the longer that spot stays vacant, fewer patients can be served and less revenue can be recovered.
Repeatedly hiring for financial and accounting positions puts hospitals at risk when the time comes to hire critical clinical staff.
Before you go firing your accountants for costing the hospital money, we need to clear something up. Healthcare staff in charge of revenue cycle management are still vital to the hospital revenue stream. They’re the ones chasing down claims settlements and bringing in money from patients’ insurance carriers. Someone needs to manage that process.
And yet, the claims resolution process is kind of… broken. Actually, a lot broken, depending on who you ask.
On average, motor vehicle accident claims get resolved after a period of 206 days. That’s seven months turnaround to settle hospital bills at a compromised rate. Factor in the compensation for the staff person and any outside legal or financial personnel managing that negotiation, and hospitals end up netting only a fraction of the original patient care expenses, or even settling for a loss.
If the claims resolution process could be cut down and managed over the course of just five days, things would look a little different.
How Fixing Healthcare’s Claims Resolution Process Solves the Hiring Budget Crisis
Consider a scenario where the hospital third-party accounts receivable or other patient financial services staff can fulfill claims settlements in five days. It’s all completed through a single online portal, which costs nothing for the hospital, and can be managed by one role. The billing staff can review pending claims in the portal, approve the proposed reimbursement rate, and complete the process for payment in just a few clicks.
Having an easier claims resolution method leaves several implications for the hospital in regards to hiring:
- Candidates do not need to be a seasoned veteran at claims negotiations to fulfill their duties, which widens the candidate pool and also lowers the cost per hire
- With shorter, more predictable timeframes for settlement, providers have more control over their revenue cycle and can budget more effectively
- Fewer people need to be involved (e.g. legal contributors, underwriters, other third-party settlement negotiators), meaning there are fewer people to pay out
- Net revenue gains from claims are increased overall due to the mix of rapid resolution and fewer expenses
All in all, hospitals end up with a claims check sooner, without dealing with excess overhead. Between more revenue coming in and fewer expenses going out, providers can pad their rainy-day hiring funds for the ability to hire sooner and at a higher quality than they could before.
Try ClaimTECH Today and Resolve Your MVA Claims Immediately
That scenario we illustrated above, where one accounting person can settle dozens of claims every day? That wasn’t a fantasy. If you click here, you’ll be directed to get in touch with the ClaimTECH team, who can get you up and running with the online portal.
Remember - ClaimTECH is always 100% free for healthcare providers. What have you got to lose (other than the headaches from your current claims settlement process)?