After two years of operating during the pandemic, hospital organizations such as LifePoint Health continue to face financial challenges.
Labor and supply costs increased by 14% and 13%, respectively, between 2020 and 2021, and Kaufman Hall projects hospitals’ losses for 2021 could amount to $53 billion under an optimistic scenario to as much as $122 billion under a pessimistic scenario. This kind of economic uncertainty has been a good reminder of why a high-performing, solid revenue cycle is an essential operational component for any successful healthcare organization. It directly correlates to the financial performance of the business and ultimately impacts how an organization can contain costs, grow revenue and deliver higher patient satisfaction.
Jason Ross, MBA, is senior vice president of revenue and network management for LifePoint Health, Brentwood, Tennessee.