REFRAME PERFORMANCE METRICS TO MEASURE HOLISTIC IMPACT
Revenue cycle automation
+ AI series
As hospitals and health systems face unprecedented shifts in the workforce landscape and persistent strain on their margins, automation offers a timely solution to drive operational efficiencies and relieve workload burden. Many hospitals and health systems are targeting revenue cycle management (RCM) for automation given its high volume of repetitive tasks and the critical role it plays in preserving an organization’s financial viability.
Recent research evaluated the adoption of robotic process automation (RPA) and artificial intelligence (AI) across hospitals and health systems. Regardless of how these providers managed their revenue cycle, executives universally reported low return on investment (ROI). While the majority of hospitals and health systems are not yet using RPA and AI for RCM, over 50% plan to pursue these technologies in the next three years. Given the projected rapid increase of automated technologies, it is critical to understand what factors drive low ROI and how hospitals and health systems can better prepare for automation.
When implementing RPA or AI in the revenue cycle, healthcare leaders recognize that workforce adjustments will be necessary to generate considerable ROI. Finance and revenue cycle executives consistently report they anticipated significant changes, such as direct cost savings from fulltime employee (FTE) reductions. Yet, actual workforce changes only make up a fraction of what executives report. Among hospital and health system executives reporting on the impact of automation investments, only 18% eliminated active positions while another 18% reported no workforce changes. The vast majority (62%) of organizations reallocated staff to different roles.
- 1 Adjusting the definition of successful results
- 2 Selecting the right performance metrics
- 3 Measuring the holistic impact of
automation + AI on RCM