In the ever-evolving landscape of healthcare revenue cycle management (RCM), principles of automation and artificial intelligence (AI) are ushering in a new era of efficiency and optimization. Yet looking back at the foundational concepts that sparked these innovations can provide all new insights.
Over a century ago, Henry Ford transformed the manufacturing industry with his innovative approach to mass production. Today, his principles can serve as a guiding light for RCM leaders seeking to navigate the complexities of the modern healthcare landscape. By drawing inspiration from the timeless, pioneering spirit of Henry Ford and his revolutionary manufacturing techniques, healthcare organizations can unlock new opportunities for growth and success.
Ford's legacy is rooted in five core principles that can be directly applied to RCM:
1. Minimize Work Effort
Ford's factories were designed to produce quality products with minimal touches, a concept that resonates deeply with RCM professionals striving to optimize workflows and reduce inefficiencies. By equipping teams with the right tools and automation, healthcare organizations can streamline processes from pre-registration to payment collection, minimizing unnecessary touches and improving overall efficiency.
For example, 80 to 90% of claims in AR do not require follow up today, yet many times representatives are touching those claims unnecessarily. Automation can ensure only the claims that need attention today make it into work queues.
2. Reduce Waste
Did you know administrative waste accounts for 28% of the wasted spend in the US healthcare system according to a report from AMGA? Ford believed in constantly revising systems and methods to eliminate waste and maximize efficiency. In the realm of RCM, this principle translates to ensuring that every action has a purpose and every touch on a claim yields a tangible outcome. By leveraging technology and data analytics, healthcare organizations can identify and eliminate wasteful practices, ultimately driving down costs and improving financial outcomes.
3. Standardize Processes
Standardization was a cornerstone of Ford's manufacturing philosophy, enabling consistent quality and efficiency across operations. In RCM, standardizing processes through technology-driven solutions can help eliminate guesswork and improve productivity. With granular insights into workforce performance and claim adjudication, organizations can identify areas for improvement and drive actionable results.
When evaluating revenue cycle processes, leaders need to look at the entire process holistically from financial clearance to coding to billing and collections and find solutions to automate manual processes along the way.
4. Embrace 'Fair Pay'
Ford understood the value of investing in his workforce and implementing incentive-based programs to recognize and retain top performers. In RCM, organizations can emulate this principle by offering competitive compensation packages and implementing incentive programs to motivate and reward employees. Keep in mind incentives do not have to be financial, other options include gift cards, time off, company swag, pizza parties and more.
By leveraging technology to increase visibility into workforce performance, organizations can create a culture of excellence and drive a sense of friendly competition and employee satisfaction along the way.
5. Maximize Margins
Ford's relentless pursuit of productivity and profitability drove him to embrace advanced technology and innovation. In RCM, organizations can maximize margins by investing in technology solutions that streamline processes, optimize staff time, and improve financial outcomes.
With intelligent analytics and workflow automation, such as Effective Intelligence solutions offered by MedEvolve, healthcare organizations can optimize the entire revenue cycle from financial clearance to coding to billing and collections for significant margin improvement. Effective Intelligence solutions upgrade existing PM and EHR systems with work drivers and insights that allow organizations to unlock new levels of efficiency and effectiveness and create added capacity for staff to do more.
Forward thinking healthcare organizations can revolutionize their approach to revenue cycle management by looking back at Henry Ford's principles which still stand true today: embracing automation, reducing waste, standardizing processes, and incentivizing employees to maximize margin. By embracing these concepts, organizations can uncover new opportunities for growth, success, and sustainability in the dynamic healthcare landscape of the 21st century.