The roadmap to a successful managed services relationship and how to get there

Collaborating with a managed services organization (MSO) is a common approach for companies that may lack the internal resources to support certain business needs. While managed services models are popular across industries, making them effective in healthcare requires special attention.

Huron healthcare managed services experts Linda Schaeffer and Grace Schlecte, who have worked with many healthcare systems to reach their Revenue Cycle Managed Services goals, share key elements and considerations that make managed services relationships successful.

The path to MSO success

Hospitals and health systems typically engage MSOs to improve three key metrics: financial margins, operational efficiencies and patient experience.

Given the crucial role of subject matter experts in guiding providers to achieve strategic goals in these areas, partnering with an MSO is a high-stakes endeavor — but one that can bring rewards across the care continuum.

"In the evolving landscape of healthcare, the relationship between service providers and MSOs has become increasingly vital," Ms. Schaeffer said. "The most successful managed services relationships connect organizations to additional resources, expertise and unique perspectives from serving many healthcare organizations."

The keys to a productive relationship

Forming a productive relationship that delivers consistent, reliable results is dependent on the performance of both organizations. Adopting a one-team approach grounded in these five elements creates mechanisms to ensure continuous alignment and accountability:

  • Clear communication/governance: Establish open and transparent communication channels to ensure both sides are always on the same page.

  • Cultural compatibility: Ensure there is a good cultural fit between the MSO and the provider organization to facilitate smooth interactions to deliver the desired outcomes.

  • Flexibility and adaptability: Be open to changes and adaptable to new circumstances or requirements.

  • Regular feedback: Provide and seek regular feedback to continuously improve the working relationship and project outcomes.

  • Trust and reliability: Build trust through consistent performance and reliability; trust is crucial for a long-term relationship.

A service level agreement (SLA) that captures expectations from both parties at the onset of the relationship is crucial. SLAs should also define performance measurements that include efficiency, quality and efficacy metrics.

"It all starts with an understanding of the healthcare provider's pain points and business objectives and how we can align to measure success against those objectives," Ms. Schaeffer said.

Ms. Schlecte added that a working partnership enables successful day-to-day operations while also ensuring that an overarching strategic vision can be realized.

"As strategic collaborators, we work with our clients to define shared success and create a prioritized roadmap for achieving desired outcomes. We regularly engage with our clients to assess progress, make necessary adjustments and ensure alignment with their evolving goals," Ms. Schlecte said.

Alignment around cultural value and work ethic is also paramount, as it creates a foundation for collaboration. "Understanding and respecting each other's organizational culture can lead to more effective communication and smoother operations," Ms. Schaeffer said.

MSOs open the door for strategic growth

Among healthcare organizations' most common business and operational challenges are those concerning revenue cycle management. Leveraging automation can drive significant operational efficiencies that impact the patient experience and outcomes, staff well-being and the organization's bottom line.

However, while there is widespread recognition of automation's transformative potential, determining how to effectively approach, deploy and measure the success of automation solutions is complex. The path to a successful digital transformation remains elusive for many hospitals and health systems, but by partnering with an MSO, providers can achieve clarity on how to prioritize long- and short-term goals.

"As organizations look to prioritize their automation initiatives, they should ground automation efforts in the problems and specific challenges they aim to solve for," Ms. Schlecte said. "That way, organizations can better define and measure the success of these solutions."

MSOs can lend valuable support to providers' automation strategies because of their unique access and insight into industry best practices. Here, alignment remains the key to a successful MSO relationship to improve technology integration and accelerate outcomes.

Why the right partnership matters

Because good relationships between healthcare providers and MSOs can last for years, it is important to identify the right individuals with the right expertise within the MSO that match the providers' pain points. This will elevate trust and ensure that providers view the MSO as an extension of their organization rather than a separate entity.

When assessing potential MSO relationships, it is also important to consider whether the MSO is capable and willing to offer a flexible, tailored approach to solving client challenges.

"My best advice is to conduct careful research up front," Ms. Schaeffer said. "Many managed service providers offer standardized, 'cookie cutter' solutions. These might seem appealing initially, but they may lead to a 'we/they' dynamic, which can ultimately hinder collaborative efforts and overall performance."

To ensure hospitals and health systems preserve institutional knowledge, they may consider rebadging their leadership team to the MSO. The process allows the managed services team to build on existing knowledge and align with the organization's culture and goals. This enables a smoother onboarding process, as well as maintaining a bridge with the MSO to the provider organization's unique history, processes and values.

"The true magic of the relationship lies in the alignment between the provider and the MSO," Ms. Schaeffer said. "By clearly understanding your organization's revenue cycle challenges in relation to your financial goals and aligning with the right MSO partner, you can draw on the exponential power of managed services to improve margins, including reducing administrative labor costs and increasing operational efficiencies."

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Whitepapers

Featured Webinars