The financial environment is finally stabilizing for hospitals and health systems. However, the challenge of self-pay collections is more significant than ever. According to the Congressional Budget Office, 26 million Americans—or 7.7% of the population—are uninsured, making it difficult for them to afford the care they need and pay for it. This underscores the urgent need for effective revenue cycle management.
Even those with insurance find it more challenging to afford the care they need. Research by KFF indicates that nearly half of adults in the U.S. find it difficult to pay their medical bills, and “one in four say they or a family member in their household had problems paying for health care in the past 12 months.”
The situation has become even more dire regarding medical debt. A recent survey by Debt.com found that the number of adults in the U.S. who carry medical debt has risen 46% over the past five years and has reached 66%. Half of that medical debt has gone into collections.
Nearly $88 billion in medical debt in the U.S. is now in collections.
Amidst these challenges, the role of outsourcers in managing the revenue cycle has become more crucial than ever. Many organizations have turned to these entities, which often deliver superior results at a faster pace, allowing healthcare organizations to allocate more resources to direct patient care.
However, not all outsourcers deliver a positive return on investment. The key to building a successful relationship with optimal results is to find an outsourcer whose leaders embrace and encourage an ownership mindset amongst their team.
What is an Ownership Mindset
An ownership mindset is where the outsourced partner adopts the same priorities and commitment to success as their clients. This accountability is displayed through myriad actions. At the top is taking responsibility for outcomes. When those outcomes are less than favorable, they own up to it and then work to take corrective actions with a commitment to process improvement. This leads to a second action: ongoing communication.
Outsourcers whose staff prioritizes an ownership mindset act as vital parts of the client’s team. The best vendors value continuous communication and provide numerous pathways to stay in touch. They also have established communication protocols and escalation resources to ensure they’re always available.
Vendors who encourage an ownership mindset are also committed to productivity, which includes the use of innovative technologies. For example, new AI-related tools like robotic process automation (RPA) can improve efficiencies and reduce manual, error-prone processes. This helps increase productivity and results, delivering greater value for the vendor and the client.
Another aspect of an ownership mindset is treating the client’s customers as their own. Vendors with an ownership mindset understand that each patient encounter reflects the provider’s brand and has the potential to sway patient satisfaction. For example, research shows that a poor financial experience can offset a positive clinical experience. Studies also show patients are willing to switch providers for a better financial experience. Vendors with an ownership mindset understand this dynamic and work to ensure every patient encounter is positive.
In addition, vendor teams who adopt an ownership mindset prioritize alignment with the client organization’s goals and values. They understand the financial implications of their decisions and performance on clients’ ability to achieve their strategic initiatives. This includes not just financial goals but values like patient-centeredness. While the term “patient-centered care” is just a marketing phrase at some organizations, vendors who embrace an ownership mindset hold patient-centeredness as a core value, and everything they do evolves around that value.
How to Identify Vendor Leadership who Embrace an Ownership Mindset
First impressions are important but often misleading. The best way to identify if a vendor leader encourages an ownership mindset is to look at their average client tenure and performance track record. How many long-standing relationships do they have? Are they willing to provide contact information so you can speak to those vendors? This commitment to long-term relationships is a testament to their trustworthiness and the value they place on client satisfaction.
Another critical step is to ask the right questions, including asking about their communications methodology. How often do they meet with vendors? If it’s only when there’s a problem, that could be a red flag. Ask about their decision-making and change-management processes. Ask about their employee training program and listen for phrases like “patient experience” and “patient satisfaction.” Do they have an incentive program for quality performance?
Finally, look for signs of integrity and a spirit of collaboration. Look for leadership awards, business accolades, and a commitment to community service. Do they highlight their team’s and clients’ success on social media? Is their leadership available at conferences? Have they published or presented on relevant topics? How do they speak about innovation and the potential of new technology?
All of these questions are valuable for identifying leaders with an ownership mindset.
Thinking Beyond the Business Agreement
Vendor partners are vital to an organization’s success, especially those focused on the revenue cycle. Choosing a partner who fosters an ownership mindset can lay the foundation for long-term relationships that deliver mutual success.