Most rural healthcare providers optimistic about finances

 Most rural healthcare providers optimistic about finances


Photo: SDI Productions/Getty Images

The vast majority of rural healthcare organizations have expressed optimism about their financial viability.

In a new Wipfli poll, 72% of respondents said they were “cautiously optimistic” and 24% saying they were “completely optimistic.”

Seventy-eight percent said they are “not likely at all” to merge with another organization, yet 41% said that reimbursements and other financial concerns remain a significant challenge.

More respondents than in previous years, about 65%, cited cybersecurity as a top concern, and 81% have increased their investment in cybersecurity technologies in the past 12 months.

“Rural healthcare organizations have emerged from COVID and managed to level off the staffing problem, said Kelly Arduino, a partner in Wipfli’s healthcare consulting practice. “But expenses are mounting, so they’re focusing on revenue-generating activities, like optimizing reimbursements.”

WHAT’S THE IMPACT

While organizations are coping better with workforce shortages, increased labor costs have prompted leaders to focus on revenue optimization. Many are beginning to implement AI tools to offset a shrinking labor pool. In fact, 32% of rural healthcare leaders are already using AI tools to enhance operational efficiency, the poll showed.

Cybersecurity has risen to the forefront of leaders’ concerns, fueled by a twofold increase in network breaches over the past year. Fifty-six percent of surveyed leaders reported significant concerns about cybersecurity – up from about 50% in prior years. This is leading them to plan investments in network security protections, digital applications and AI tools over the next 12 months.

About 40% of respondents said their financial stability was better than it was a year ago, compared to 22% who said it was worse. More than half, 58%, said they were more financially stable now as compared to the period just before the COVID-19 pandemic. 

At the same time, 31% said they had concerns regarding managed care denials and prior authorizations – an increase over the 11% who cited that as a primary concern last year. But fewer organizations cited workforce concerns as a priority (32% vs. 41% last year), and 40% said their staffing situations have improved in the past year.

THE LARGER TREND

Half of all rural hospitals in the U.S. are currently in the red, and February 2024 Chartis research suggested that high enrollment of rural residents in Medicare Advantage plans could make the situation worse.

The percentage of America’s rural hospitals operating in the red jumped from 43% to 50% from 2023 rto 2024, data showed. Fifty-five percent of independent rural hospitals are operating in the red, while 42% of health system-affiliated rural hospitals are operating at a loss. Nearly 60% of rural hospitals are now affiliated with a health system.

Meanwhile, Medicare Advantage now accounts for 35% of all Medicare-eligible patients in rural 
communities. In seven states, Medicare Advantage penetration exceeds 50%.

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.



Source link

Fallon Wolken

Related post

Leave a Reply

Your email address will not be published. Required fields are marked *