Ours is a unique industry, part business and part regulated entity dependent on third party payers and government. This makes hospital budgeting much more complex than annual budgeting for a business.

You parsed the pre-pandemic historical data because it serves as a benchmark for post-pandemic performance. You’ve also likely delineated pandemic years’ performance into meaningful data subsets.

If you did this, you weighted each subset for its relevance in predicting future performance.

Your hospital has unique needs based on its type, size, location, and the demographics of the communities it serves. Your new fiscal budget is a blueprint and fiscal Road Map for the next operating period.

Ongoing reports based on UB-92’s paint a broad picture, but you need a much deeper data dive to understand the mathematical relationships among the many moving parts that generate net revenue.

What does an advanced financial modeling tool look like?

An advanced algorithm with a predictive analytics component can model any number of potential revenue scenarios and rate them based on probability and trend analysis. In addition, this enables you to drill-down to the potential net revenue impact of each variation.

Deciding which potential net revenue scenario is the most accurate projection depends on your decision-making model. Picking 3 different net revenue scenarios could reflect a conservative approach, a moderate approach, and an aggressive approach.

Making a final decision often depends on multiple factors, including short-term needs and longer-term goals.

What about generative AI?

Generative AI could tighten the accuracy of an algorithmic model, however data used to program the generative AI tool must reflect your hospital’s unique mix of expertise, brand strength, market factors, and the needs and demographics of the communities you serve.

See what a ‘Q’ Strategic Advisory can do for you!!