Many hospitals throughout the country, especially not-for-profit and rural facilities, have been struggling financially. With the COVID-19 pandemic acting as a catalyst for many struggling health systems, the need to evaluate, strategize and implement solutions to turnaround and course correct operations for a more sustainable future has never been more important.
At Baker Tilly, we understand the multitude of challenges your facility encounters while still fulfilling your mission-critical task of improving patient outcomes. Regardless of your organization’s current situation, our team of Value Architects™ have the resources to help resolve your financial issues and stabilize your operations for a more financially sustainable future. Our team supports our clients who are working to address their hospital’s current financial situation to become more financially resilient.
Hospitals are more likely to experience financial hardship without a clear, thought-out plan to address declining revenue, missed financial forecasts, labor shortages/turnover, liquidity challenges or a weakened finance function. Baker Tilly’s corporate turnaround professionals are here to offer the experience, skills and industry insight to quickly guide facilities with minimal cash on hand in turning things around. We provide guidance on turnaround options and strategic assistance in crafting a successful turnaround plan, including turnaround performance improvement, interim management from former CEOs and C-Suite resources, and transaction advisory and investment banking services.
The role of the chief financial officer (CFO) is rapidly changing, and having a strategic leader who can accurately forecast into the future and lead during unplanned events is essential for the financial health of the company. This is especially true during the coronavirus pandemic and with how much hospitals have struggled with impacts to cash flow and retaining income. Baker Tilly’s CFO advisory and support services helps struggling hospitals with business performance management, CFO support, controller support, financial reporting and compliance, and strategic and transaction support.
The revenue cycle operations of struggling hospitals are often not flexible enough to account for today’s challenging and unpredictable healthcare environment. Through the combination of our innovative technologies and our unique Advanced Revenue Cycle (ARC®) platform, we are able to help struggling hospitals increase annual net revenue by identifying and removing human error, minimizing manual efforts, and reducing costs through the utilization of robotic process automation (RPA) and exception-based workflows to drive higher productivity levels.
It is vital for your hospital to be fairly compensated when negotiating reimbursement rates with health plans and managed care organizations (MCOs). Baker Tilly provides a full range of managed care consulting solutions that can help hospitals quickly adapt and transform their strategy, operations and reimbursement structures to remain competitive and viable in an evolving market. We do this through pricing benchmarking strategies; value-based payment transformation; service line analysis and managed care predictive modeling; fee-for-service and valued-based care (VBC) managed care contracting; outsourced managed care support; and physician alignment solution services. We also help providers evaluate why they are not accruing bonuses, as well as avoiding penalties for government programs, including Value-Based Purchasing (VBP), Healthcare Readmissions Reduction Program (HRRP), Hospital-Acquired Conditions (HAC), The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), and more.
Hospitals are struggling to manage their operating expenses. At Baker Tilly, we are able to conduct a multi-tiered review of all types of expenses to identify immediate opportunities for improvement, including reviews that focus both on department-level expenses as well as how physicians and other caregivers are using resources, thereby allowing department managers to identify opportunities and then to know how to fix them if there is variation across caregivers. We can help identify, track and classify operational, supply chain, employee, infrastructure, construction and capital management, and other expenses that do not contribute to better quality of care and help develop a plan to remedy unneeded financial expenditures.
An area of optimization that most healthcare organizations can improve immediately is related to revenue cycle performance for physician practices. The issues are typically process related, and with the use of Baker Tilly’s ARC® platform, we are able to help practices improve net revenue through reduced payer denials and increase cash flow by enhancing account throughput and first pass payment cycles reducing employee overhead costs. Furthermore, Baker Tilly can leverage our managed care service offering to enhance physician reimbursement by adapt to new payment models that will provide additional annual revenue at the individual and practice level.
In order to mitigate risks and improve patient outcomes, hospitals need to evaluate their supply chain’s strengths and correct weaknesses. Baker Tilly’s supply chain optimization professionals can help assess your organization’s supply chain processes and infrastructure, and help improve and optimize its resilience.
After your hospital’s operations and financial situation has stabilized, it is imperative to take a proactive approach of further identifying, correcting and improving financial problem areas within your organization. Baker Tilly’s financial sustainability services can help your hospital remain financially sustainable and ensure your organization has the appropriate internal controls, processes and systems in place to protect your financial assets and improve operations.