UNC Health Southeastern Prioritizes Financial Sustainability in Health System Strategy – Becker’s Hospital Review

, and are going to be able to leverage some of the stuff we learned over the last 12 to 24 months to be able to face what is coming,” she said.”We are going to be able to focus a lot more on lowering readmissions and trying to get our length of stay under control.”

UNC Health Southeastern Navigates Financial Headwinds With Strong Performance

Lumberton, N.C. – UNC Health Southeastern is entering a new fiscal year from a position of financial strength, enabling it to proactively address potential challenges posed by recently enacted legislation. The 452-bed hospital system, which is part of the larger UNC Health network and employs over 135 physicians, is preparing for changes in the healthcare landscape.

The hospital’s positive performance is attributed to several factors,notably North carolina’s adoption of the Hospital Access and Stability Program (HASP).This program led to a significant increase in Medicaid reimbursements, aligning them more closely with actual care costs, contributing over $50 million to the hospital’s revenue.

Parallel to the positive impact of HASP funding, UNC Health Southeastern also prioritized internal improvements. These included concerted efforts to stabilize staffing levels, streamline revenue cycle operations, decrease reliance on costly contract labor, and implement association-wide cost-saving measures.

Sara Bradley, CFO of UNC Health Southeastern, emphasized the importance of proactive financial management. “There’s a lot of potential margin erosion and cost containment issues that come with the healthcare habitat in general… financial sustainability is definitely something that stays front and center,” she stated.

Looking ahead, the hospital is focused on mitigating any potential negative effects of the new legislation, particularly given the higher proportion of Medicaid patients it serves.Ongoing initiatives include recruiting additional medical professionals – 77 providers have been added as 2023 – and continuous improvements in both patient and employee satisfaction.

UNC Health Southeastern’s strategy centers on enhancing operational efficiency, with particular emphasis on reducing hospital readmission rates and optimizing patient length of stay. The hospital aims to build on the positive momentum gained over the last year to navigate future challenges and continue providing high-quality care to the community.

What specific strategies is UNC Health Southeastern employing to address decreasing reimbursement rates and the shift to value-based payment models?

UNC Health Southeastern Prioritizes Financial sustainability in Health system Strategy

Navigating the Evolving Healthcare Landscape: A Southeastern Focus

UNC Health Southeastern, a key component of the broader UNC Health system, is actively implementing strategies centered around financial sustainability as a core tenet of its overall health system strategy. This shift reflects a growing trend within the healthcare industry, driven by factors like rising costs, changing reimbursement models, and increasing pressure to deliver value-based care. The Becker’s Hospital Review coverage highlights a proactive approach to ensuring long-term viability and continued access to quality care for the communities served. This isn’t simply about cost-cutting; it’s about healthcare financial management and strategic investment.

Key Pillars of UNC Health Southeastern’s Financial Strategy

UNC Health Southeastern’s approach isn’t monolithic.It’s built on several interconnected pillars designed to address financial challenges from multiple angles. these include:

Revenue Cycle Optimization: Improving processes related to billing, coding, and collections to maximize revenue capture. This involves leveraging technology like robotic process automation (RPA) and advanced analytics to identify and resolve bottlenecks. Focus areas include reducing claim denials and accelerating payment cycles.

Cost Reduction Initiatives: Identifying areas where operational efficiencies can be gained without compromising patient care. This encompasses supply chain management,energy conservation,and streamlining administrative processes. Healthcare cost containment is a major driver here.

Strategic Service Line Growth: Investing in high-margin service lines with strong regional demand. This coudl include expanding specialized care offerings, such as cardiology, oncology, or orthopedics. Service line profitability is a key metric.

Value-Based Care Adoption: Transitioning from fee-for-service models to value-based care arrangements, which reward providers for delivering high-quality, cost-effective care. This requires robust data analytics capabilities and a focus on population health management. Population health management strategies are crucial.

Partnerships and Collaborations: Exploring opportunities to partner with other healthcare organizations or community stakeholders to share resources and reduce costs. This could involve joint ventures, shared services agreements, or accountable care organizations (ACOs).

The Impact of Reimbursement Changes & Market Dynamics

The healthcare industry is undergoing significant shifts in healthcare reimbursement models.UNC Health Southeastern, like many systems, is adapting to:

Decreasing Reimbursement Rates: Government and private payers are increasingly focused on controlling healthcare costs, leading to lower reimbursement rates for providers.

Shift to Value-Based Payment: The move towards value-based care requires providers to demonstrate improved patient outcomes and reduced costs to recieve full reimbursement.

Increased Competition: The healthcare market is becoming increasingly competitive, with new entrants and option care models challenging conventional providers.

Rural Healthcare Challenges: Southeastern North Carolina faces unique challenges related to rural healthcare access and socioeconomic factors impacting patient health. Financial sustainability is paramount to maintaining services in these areas.

Technology’s Role in Financial Turnaround

Technology is playing a pivotal role in UNC Health Southeastern’s financial turnaround. Specific applications include:

Data Analytics Platforms: Utilizing advanced analytics to identify trends, predict costs, and optimize resource allocation. Predictive analytics in healthcare is becoming increasingly critically important.

Electronic Health Records (EHRs): Leveraging EHR data to improve clinical documentation, coding accuracy, and billing efficiency.

Telehealth Expansion: Expanding telehealth services to improve access to care, reduce costs, and enhance patient convenience. Telehealth reimbursement policies are a key consideration.

* Cybersecurity investments: Protecting sensitive patient data and ensuring the integrity of financial systems. Healthcare cybersecurity is a growing concern.

Real-World Examples & Case Studies (Within UNC health)

While specific details of UNC Health Southeastern’s initiatives are often proprietary,the broader UNC Health system provides examples of prosperous financial strategies. As an example, UNC Medical Center in Chapel Hill has implemented a system-wide supply chain optimization program that has resulted in