Focusing on RCM employee satisfaction leads to retention, positive customer interactions, and increased margin
The service concept below has resonated with me for two decades because I think we still have it wrong in healthcare. We still expect people to serve the customer because we believe that is what drives revenue and profitability. Wrong! Ritz-Carlton, Disney, and other successful companies like that have figured this out a long time ago. If you have ways to objectively measure your revenue cycle employees, then you can recognize and reward them. As a result, you will retain them, deliver better customer service, therefore increasing margin and profitability.
How to help your revenue cycle team give 100% in the workplace
Let’s look at Maslow’s Hierarchy of Needs. Seventy years ago, physiological needs were harder to achieve in the US. Those are assumed now, and with the invention of social media and the need to be recognized and rewarded, employees desire that. When they are in a job position where they are only doing enough to not get fired because there are no incentives to do better, they never achieve self-actualization in the workplace. I heard a term the other day called “acting your wage”. In other words, if you pay me $20 an hour, I’m only going to give you $20 an hour worth of effort, even though I know I have more.
By measuring your staff in a non-emotional, objective way, we can set goals with them, they are able to compete against themselves, and, as a result, they will give more to the organization.
What does RCM work effort measurement do for your healthcare organization's bottom line?
What happens when you implement recognition and rewards into your revenue cycle? Production improves. Note the calculations below.
If your healthcare organization collects $30 million per year and you have 25 FTEs that give you 50% work effort, you are getting 25,000 productive hours per year. With the right recognition system and reward system in place using Effective Intelligence technology real-analytics and workflow automation, let’s assume you are able to improve production by 25% and eliminate or reassign five FTEs. You would save $312,000 just by getting your top talent to aspire to more production. Now, let’s assume that as a result of having a more effective staff, you improve collections by $1.5 million. Between the FTE savings and improved collections, that’s roughly $1.8 million.
Let’s give back 10% to those winners, $9,664 plus their salary, and that is still $1.6 million dollars back into your margin.
About Matt Seefeld
Matt Seefeld, Executive Vice President at MedEvolve, brings over 24 years of management consulting experience in the healthcare industry. He has extensive expertise in the assessment, design and implementation of process improvement programs and technology development across the entire revenue cycle. Matt began his career with Stockamp & Associates, Inc. and worked for both PricewaterhouseCoopers LLP and Deloitte Consulting LLP in their healthcare and life sciences practice lines. In 2007, he developed a business intelligence solution and founded Interpoint Partners, LLC, where he served as Chairman and Chief Executive Officer. In 2011, he sold his business to Streamline Health Solutions where he then served as Chief Strategist of Revenue Cycle followed by Senior Vice President of Solutions Strategy until 2014. Matt ran global sales for NantHealth and provided consulting services for healthcare technology and service businesses nationwide, prior to joining MedEvolve full-time.