Hospital Support Costs Killing Profits with New Obamacare Regulations

Hospitals and health facilities provide value through care, diagnosis, medication and procedures by doctors with assistance from nurses.  Despite this fact, the difference between profitability and loss is not the quality of the health professionals but of the hospital support costs.  In particular, Obamacare has added some new mandates that place incentives on efficient process and outcome rather than procedures and tests. Firstly, Obamacare provides incentives and mandates for hospitals to migrate to electronic health records (EHR).  While everyone agrees EHR would be ideal in theory, the cost and complexity of moving to the system is in dispute.  Using a well-maintained PeopleSoft system, EHR can be integrated into other systems to improve efficiency and reduce costs.  In addition, billing and revenue management may be managed more efficiently. Obamacare newly authorized Accountable Care Organizations also put increased pressure on costs.  While they are also good in theory, they increase upfront personnel costs and reduce the chances for high income procedures.  For that reason, cost control and patient volume are important. Only hospitals that can walk this tight rope of low-cost high volume care can succeed while relying on medicare and Obamacare patients (which are the majority).  For that reason, Peoplesoft integration is crucial to carefully monitor costs.  The software also provides key performance indicators so that administrators can keep careful control. Even though there are more pressures in the system, there are also more potential customers.  Efficiency is more important than ever but the profit potential is still great.  For more information please contact us.  Belmero helps hospitals running Peoplesoft ERP improve their efficiency, customize development and increase profits.

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