Several converging trends are continuing to hammer healthcare organizations. Thin margins are getting thinner and a tight labor market is getting tighter while consumer expectations keep growing.
For many of the nation’s largest nonprofit health systems, operating margins have dipped below 1% despite recent rebounds in revenue and patient volumes. At issue are rising expenses, especially for labor. For the first time since 2004, it’s personnel shortages that keep executives awake at night. A Kaufman Hall report highlights the culmination of these pressures, noting that, “Since 2019, total expense per adjusted discharged has increased by 20.1%, labor expense per adjusted discharged has increased by 19.1%, and non-labor expense per adjusted discharged has increased 19.9%.”
At the same time, patients increasingly expect a seamless and personalized healthcare experience that mirrors other consumer-oriented aspects of their lives. One industry survey notes that 69% of patients would switch providers for more convenience, and 79% want the ability to use technology to manage their healthcare experience. Yet, in the consumer world, one in three people would abandon a brand — even one they loved — after just one bad experience.
In other words, the stakes are high. Failure to deliver a modern, streamlined patient experience means a costly failure to attract, satisfy and retain patients. Conversely, success means health systems can generate patient loyalty and growth while also enabling operational efficiency. Indeed, simplifying the patient experience is a winning situation for all involved.
Fortunately, this idea comes as no surprise to companies like R1 which have long understood that healthcare’s operating environment is not only changing dramatically but accelerating. We’ve also long recognized optimized processes as inseparable from the consumer experience.
An intelligent platform achieves results
Many successful health systems already collaborate with technology partners to simplify the patient experience. Leading organizations such as Ascension and Intermountain Healthcare have partnered with R1 to eliminate frustration-inducing friction from the revenue cycle. Together, we’ve created and executed a multi-year strategy to build upon the necessary expertise and best-in-class technologies.
To create a patient-centric experience across the entire journey, our partners work with us to continuously enhance our comprehensive digital platform that simplifies the entire workflow for patients and providers — from digital order to final bill resolution. They are transforming front-end revenue cycle operations with hardwired best practices that leverage years of collective experience. And they are generating patient loyalty at each step by using a platform designed to be interoperable with the most sophisticated consumer-facing ecosystems and the most complex EMR environments.
Moreover, we have melded deep consumer and revenue cycle expertise with exceptional technology. That’s why we have invested $500 million to bring SCI Solutions, Tonic Health and VisitPay to R1. Fundamental to those solutions is the talent that drove their success — from consumer finance to hospitality to user experience to data science. Our commitment is to retain and nurture our experts, while attracting the best talent in the industry.
Want to learn how to increase patient payments and build loyalty? Download our 2024 Patient Payments Experience Report.
Combining this expertise with robust technology into our intelligent patient experience solution, R1 Patient Resolution, our health system partners have achieved some outstanding results. For instance, they have:
- Reduced costs up to 45% in key patient access areas, such as scheduling and pre-registration
- Increased payment yields up to 40% across large enterprises
- Improved patient loyalty as indicated by an average Net Promoter Score of 45+ for patient financial engagement in an industry that averages closer to 20
Today’s unique challenges make it an exciting time in the healthcare industry. It is this point in history that will see deep, lasting transformation for the better for consumers and the providers who serve them. Ongoing collaboration and innovation are the keys to success.
Is your health system working to reduce friction and simplify the patient experience? Check out how Ascension crafted and executed a patient-centric revenue cycle strategy to reduce friction, streamline care journeys, reduce costs and achieve faster reimbursement.
