What You Should Know:
– Ensemble Health Partners, a provider of revenue cycle management services, has released its 2024 Healthcare Business Trends Report, revealing a shift in priorities among healthcare executives.
– The report, based on a survey of over 100 senior executives, highlights a growing focus on outsourcing revenue cycle management and leveraging external expertise to drive performance, improve financial health, and achieve long-term growth.
4 Trends Driving the Next 4 Years
The report survey reveals four key trends driving the next four years for healthcare executives:
1. Implementation of alternative payment models, such as value-based contracts, will be a top strategic priority, with 63% of executives prioritizing this in 2028 (compared to 47% today).
2. Growth strategies will take precedence over cost-cutting, with increased prioritization of identifying acquisition targets and investing in talent and technology.
3. Increasing investment in managed services, with 25% of organizations planning to allocate over half their revenue cycle budgets to managed services in the next four years.
4. Value and performance will be primary factors driving revenue cycle management vendor selection, with 95% of executives expressing interest in end-to-end managed services.
Report Key Findings
– Outsourcing is on the rise: 95% of executives surveyed are considering or already using revenue cycle managed services.
– Performance trumps cost: More than 70% believe managed service providers deliver better results than in-house operations, making performance the primary driver of vendor selection.
– Focus on value-based care: 63% of executives plan to prioritize implementing alternative payment models like value-based contracts in the next four years.
– Investment in growth: Organizations are shifting focus from cost-cutting to growth, prioritizing acquisitions, talent development, and technology investments.
– Managed services budgets increasing: 25% of organizations plan to allocate over half their revenue cycle budgets to managed services within four years.
Judson Ivy, President, Founder, and CEO of Ensemble, notes the increasing challenges faced by healthcare organizations and the trend of seeking reliable partnerships to navigate financial strain, regulatory complexity, and cybersecurity challenges.