A recent Black Book study has found 93 percent of organizations that had negative 2013 operating margins are prioritizing investments in coding, value-based support software, collections and revenue cycle management outsourcing over the next 12 months.
"Most hospital CFOs have no choice but to leverage next generation financial system solutions including software and outsourced services in order to keep their organizations solvent," said Doug Brown, managing partner of Black Book Market Research, in a news release. "The reimbursement challenges ahead to get paid may require several new applications, and the frank reality is that outdated, understaffed and failing current solutions could quickly close a marginally performing hospital for good."
The study found the vast majority (84 percent) of hospitals with struggling finances are delaying investments in physician practice acquisitions and recruitment, population health, patient engagement and analytics.
The study also found 91 percent of CFOs at healthcare organizations that had negative 2013 operating margins are coordinating their technology for value-based care models, even though the majority of their revenue continues to be fee for service.
The study was based on survey responses from executives at 566 hospitals and inpatient systems.
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