Almost 75% of surveyed healthcare organizations will invest in cost transformation technology over the next two years.
A new survey on healthcare performance improvement from Kaufman Hall found that stagnant and declining patient volumes was the most important revenue concern for 30% of healthcare executives. Decreasing commercial insurance rates and increasing numbers of Medicare and Medicaid patients were also identified as revenue challenges, with 27% and 19% of respondents listing them as their primary concerns in the survey, respectively.
Though the survey found that almost all hospitals in the U.S. have set targets for cost reduction, less than 25% have achieved their goals. Part of this may be due to the fact that almost half of healthcare organizations do not have access to reliable cost data. Having access to trusted data and analytics is vital to creating effective cost reduction initiatives, especially when considering the complexities associated with meaningful cost transformation. Nearly three out of four respondents said they would purchase technology to aid their cost transformation efforts over the next two years.
The survey also identified opportunities for healthcare organizations to reduce their costs moving forward. One major opportunity was the reduction of clinical variation, which respondents admitted has seen the least success from their cost transformation efforts thus far.