The majority of healthcare CFOs and revenue cycle leaders see an increasing need to hit cash flow targets in the next three years compared with this year, according to a recent survey.
Knowtion Health's study, "Race for Cash: Pivoting Your Denials Strategy for a New Era," published July 23, examines how denials, underpayments and complex payment processes have pressured hospitals' financial performance.
Among 76 U.S. hospital CFOs and revenue-cycle leaders surveyed, 24% project "significant challenges funding long-term capital needs" in their organizations.
The majority viewed their systems as being on a positive path currently, but 39% also described their current financial path as "limiting."
Denials were cited as a hindrance to cash growth efforts, with more than half of those surveyed reporting denial rates of 10% or more last year. While causes of the denials varied, some survey participants noted payer inconsistency of bundling of charges and staff turnover across both payers and providers leading to ineffective contracting.
Nearly one in five described their denials management process as "not very effective."