The ongoing staffing shortages in the healthcare industry have profoundly impacted the revenue cycle of healthcare providers in the United States, with the healthcare industry facing several challenges that are driving up bankruptcies. Labor shortages are making it difficult for hospitals and other healthcare providers to staff their facilities, and rising interest rates are making it more expensive to borrow money.
According to a recent study and report, “An analysis of 40 interviews of healthcare executives published by consulting firm CWH Advisors found that 63 percent of providers were dealing with revenue cycle staffing shortages. Providers were focused on hiring RCM talent that would help boost the patient experience; only 42 percent of providers were satisfied with their patient pay solutions.”
The critical shortage of healthcare workers, particularly nurses, has decreased efficiency and productivity in handling the revenue cycle management (RCM) process. As a result, there has been a rise in unresolved claims, increased denials, and a costly affair to maintain an in-house team of RCM service personnel.
With the industry estimating a loss of 20% of its workforce during the pandemic, including 30% of nurses, the burden on the remaining staff to manage the revenue cycle has intensified. The combination of an aging population requiring more care and the burnout experienced by existing healthcare providers due to the pandemic further exacerbates the challenges. The healthcare sector faces a perfect storm, underscoring the urgent need for innovative solutions to address staffing shortages and create a sustainable and efficient revenue cycle management process.
The Impact Evaluation
The healthcare industry is particularly vulnerable to bankruptcy because it is highly regulated and capital-intensive. Hospitals and other healthcare providers need to maintain a large staff of trained professionals, and they also need to invest in expensive equipment.
The labor shortage makes it difficult for healthcare providers to find the needed staff leading to longer patient wait times and making it more difficult for hospitals to operate efficiently.
Rising interest rates are also making it more expensive for healthcare providers to borrow money. This is making it more difficult for them to finance new projects, and it is also making it more difficult for them to refinance existing debt.
The combination of labor shortages and rising interest rates creates a perfect storm for healthcare bankruptcies. If these challenges are not addressed, the number of bankruptcies in the healthcare industry will likely continue to rise.
In addition to the labor shortage and rising interest rates, other factors that are contributing to the rise in healthcare bankruptcies include:
- The aging population, which is putting a strain on healthcare resources.
- The increasing cost of healthcare is making it difficult for patients to afford care.
- The growth of managed care puts pressure on healthcare providers to reduce costs.
The rise in healthcare bankruptcies is a severe problem impacting patients, providers, and the healthcare system. It is essential to address the underlying challenges driving these bankruptcies to protect the future of the healthcare industry.
How can a Mobile Workforce help?
QWay Healthcare provides a mobile workforce for revenue cycle management that caters to administrative operations at low operational costs compared to in-house teams. In an ever-evolving healthcare landscape, staying ahead of the curve is essential for revenue cycle management (RCM) companies to thrive. As the demand for seamless and efficient financial processes grows, traditional in-house staffing may no longer be the most viable solution. Embracing a mobile workforce presents a game-changing alternative that promises enhanced productivity, cost-effectiveness, and adaptability.
QWay Healthcare Inc. specializes in providing exceptional Revenue Cycle Management (RCM) outsourcing services with a unique approach. We focus on achieving higher rates of Accounts Receivables (A/Rs) and streamlining medical billing back-office operations by incorporating a mobile workforce. We break through geographical barriers and gain global access to top talent, ensuring that our RCM teams have diverse expertise. Get in touch with QWay Healthcare Inc. to discover how our mobile workforce can elevate your revenue management to new heights.
