Healthcare organizations suffer from grave losses due to loopholes in their existing medical billing systems. However, the picture is much bigger than it seems. It would be best if you considered the entire financial ecosystem when you are struggling with reviving the financial health of your organization. Some leading provider organizations are optimizing their supply chain management for medical devices to recover from the losses. According to the case studies done so far, a well-organized medical supply chain management could increase financial savings to compensate for the overall losses.
Many of these case studies involve using supply chain partners or artificial intelligence-based systems to monitor the inventory. If you are in the process of optimizing your financial health, then a well-formulated supply chain management strategy might be the missing puzzle piece in your medical billing systems.
Challenges in Traditional Methods
The traditional methods pose a significant number of problems to the medical billing systems of the supply chain due to improper utilization of funds. In most cases, the organizations tend to overspend than what is actually required to meet the requirements. Here are some of the complaints that have surfaced over the past two years.
- According to several healthcare supply chain surveys, the inventory costs are soaring very high and have often become one of the costliest expenditures of the healthcare organization.
- The healthcare industry records around USD 5 Billion in losses due to the unorganized inventory management in a year.
- The situation has particularly escalated after the global pandemic of Covid-19, with items like Personal Protective Equipment being in high demand.
- In traditional methods, the organizations tend to order their supplies according to the historical models they have followed so far. It also depends on the physician’s preference.
- But none of the traditional ways can shed the much-required light on the actual needs, and therefore most of the supply orders are unnecessary and go to waste.
- The expenditure of the organizations goes up, but they barely meet the actual requirement at that point in time.
- Traditional methods also do not have a firm ground on the interoperability of the entire system. The teams managing the different supply chain stages are often not in sync, leading to unnecessary delays and increased costs.
- A move to a more robust integrated system will focus on getting the teams together and monitoring the supplies’ real-time requirements.
AI in Supply Medical Billing Systems: A Statistical Overview
Recent statistical figures about healthcare systems switching their traditional methods with the AI-based supply chain management show that many have taken an interest in lowering their losses and improving their savings. Here are a few that you should know:
- An IDC survey reveals that more than 60% of healthcare systems have already increased their investment in AI-based supply chain applications.
- Among them, 64% of the leaders confessed that their cloud-based applications are critical to the scalability of the business.
- While there are several options available in the market, 88% of the healthcare organization decision makers feel that artificial intelligence is set to bring some significant changes in the upcoming three years.
- With the help of these advanced supply chain management technologies, a mid-scale healthcare organization can reap around USD 15 million in savings.
- Z5 Inventory, a technology partner in supply chain management, says, “One of our partners, Steward Health Care, worked with Z5 Inventory to prevent more than $29 million worth of inventory from expiration and achieve a savings of more than $16 million that was able to be reinvested in the care they provide their communities.”
How can AI systems scale the current supply chain management?
The statistical figures indicate that the healthcare industry is steadily moving towards a more stable and scalable supply chain management. They are looking towards advanced AI systems to manage their medical billing systems. Some of the leading partners in the market offer these solutions:
- The advanced systems function mainly with the help of the AI-enabled supply chain control towers, which coordinate the entire process.
- These towers work to give the leaders practical real-time visibility into the entire supply chain network.
- They help them monitor the demands and any changes with the stakeholders that can disrupt the chain.
- The actionable data mining technology helps the organizations monitor their inventory in a more practical ecosystem, thereby helping them make better decisions for the organization.
- Innovative forecasting technology is another valuable tool for the stakeholders to adjust their orders in real-time, taking the demands into perspective.
- It helps the different teams to coordinate better on a single vertical, keeping everyone in the loop and thus improving the administrative productivity of the organization as a whole.
- The in-depth data analysis reports over a period of time help the financial leaders move in a more sustainable pathway for growth.
Escalating Value-based Care
With the healthcare industry transitioning from fee-for-service to value-based care, the financial leaders are focusing on practical means to increase the financial savings while improving the clinical outcome for the patients. Advanced supply chain management can help in these ways:
- Financial risks are major drivers to improve value-based care. Having the correct data in hand without solely depending on the enterprise resource planning (ERP) system will help healthcare organizations to plan their spending wisely.
- Removing unwarranted variance in the patient’s financial and clinical outcomes will help foster a better relationship and escalate the system.
- With a number of teams working in close contact, the provider organizations will be able to realize the lowest cost of supplies without compromising the quality of care.
- Clinical efficacy, pricing, and product utilization will get better with the help of deep data analysis of advanced AI-based systems.
If you are looking at ways to improve your supply chain management and dive into the advanced AI systems in healthcare, you can get in contact with leading revenue cycle management companies to evaluate your financial health first. They can take your existing financial data points in place and come up with the most practical solutions.
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