Focus workforce1/28/2024 While healthcare organizations largely take advantage of benchmarks to monitor performance, a vast majority of finance professionals (78%) said their organizations should do more to leverage financial and operational data to inform strategic decisions. Healthcare Organizations Fall Short in Using Data for Decision-Making Outpatient revenue continues to drive this growth - increasing 7.5% from 2021 to 2022 - reflecting an industry-wide shift from inpatient to outpatient care. ![]() Throughout 2022, gross operating revenue was up 18.9% compared to 2020 and 16.3% from pre-pandemic levels in 2019. Total expenses rose 5.7% from 2021 to 2022. Revenue Growth Failed to Keep Up With Expense IncreasesĪlthough hospitals and health systems experienced a 4.7% increase in gross operating revenue from 2021 to 2022, the gains failed to keep up with expense increases. ![]() Median total expense rose to a high in January of 11.5% above January 2021 levels, while labor expense climbed to a high in February of 13.7% above February 2021. Not surprisingly, expenses rose throughout 2022. Year-over-year median Operating Margin declines by month ranged from –7.7 percentage points in April 2022 versus April 2021, to a decline of just –0.7 percentage points for November 2022 versus November 2021. Syntellis data finds operating margins fell below 2021 levels each month throughout 2022. The combined impacts of these and other challenges contributed to a very difficult year for the industry as operating margins narrowed and labor and non-labor expenses increased. Healthcare providers nationwide faced a conflux of challenges in 2022, including decreased federal aid, inflation, rising labor costs, and other repercussions of long-running workforce shortages. Operating Margins Continue to Fall Amid Rising Expenses and Labor Costs To address these concerns, finance leaders cited reducing costs (67%), managing improvement initiatives (63%), and measuring and managing productivity (52%) as top departmental goals for 2023. When asked which additional matters keep them up at night, respondents reported: Healthcare finance leaders are in near complete agreement that workforce optimization and productivity are a major concern, with 98% citing it as a top or high priority for 2023. “The findings of this year’s report underscore the need for healthcare leaders to adopt modern data and analytics platforms to solve for the biggest issues facing their organizations - including workforce productivity and cost management.” “Healthcare leaders feel positive about their ability to adjust to changing market conditions, but there remains room for improvement when it comes to solutions they use to guide operational, financial and strategic decision-making,” said Flint Brenton, CEO of Syntellis Performance Solutions. ![]() The report combines Syntellis’ year-end key performance data from thousands of providers nationwide with survey results from more than 200 healthcare finance leaders to highlight key challenges and priorities facing healthcare in 2023. ![]() CHICAGO-( BUSINESS WIRE)- Syntellis Performance Solutions, the leading provider of enterprise performance management software, data and intelligence solutions, today released its sixth annual CFO Outlook for Healthcare report, which finds that despite declining operating margins over the past year, nearly nine in 10 (89%) finance leaders remain confident in their organization’s ability to quickly adjust to changing market conditions as they head into 2023, down slightly from 92% the previous year.
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