Financial modeling is an essential tool for budgeting and for hands-on oversight to steer the hospital to fiscal sustainability.

Everything is different because of the Pandemic and how it changed both America and health care. We are emerging from the Pandemic hangover, but the recovery is uneven.

More hospitals are in the black now as the new health care unfolds. Still, margins are tight for many, especially Rural Health America.

The goal is to forecast accurately the net revenue impact of any number of potential change scenarios, including staffing, the increased cost of drugs and supplies, consumerism and its impact, and of course generative AI.

Each hospital’s book-of-business is unique to the communities it serves, their health and wellness, and their demographics. The surge in mental illness and addiction that began with the Pandemic is still with us.

Behavioral Health perhaps is the last frontier of health care, but its importance cannot be minimized. It affects our families, friends and neighbors, and staff as they deal with heavy workloads during a tough economy.

You know your book-of-business at any one time because the data shows it, but are you able to “see” the changes before they impact the hospital?

Trend analysis measures variation from the “norm” and statistical change that affects hospital revenue. We’re looking for meaningful takeaways that can only come from an analysis of the data.

Each year is unique. Service line volume, net revenue by service line, net service line revenue by payer, and the percentage of denials by payer vary from month-to-month, but how do you take advantage of this change?

The relationships (and ratios) of the many factors that determine net operating revenue are key to understanding change and variation, and it’s more important than ever to “see” that change before it impacts the hospitals.

A key takeaway from the Pandemic is the change in the decision-making process. Decisions that perhaps took 6 months are made now in a couple of months or less. CFOs are operational. Actionable intel has become more effective as AI and machine learning has improved.

Innovation counters change and the smart entrepreneur embraces that change. Our industry is adapting to a tough economy and an environment with more moving parts than ever before.

The feds are looking to introduce policy that will push value as a replacement for FFS by 2030. This has the potential to be as significant as the change to DRGs in the early 1980’s.

See what ‘Q’ can do for you!