Wondering how you can build a Resilient Healthcare Business?
So Change Healthcare was apparently hit with another extortion request on Monday (4/8/24). I was talking with a friend of mine the other day who’s involved with healthcare cybersecurity and he was telling me he thinks it’ll be a LONG time until Change is fully recovered from the initial attack in February. What many people outside of healthcare don’t realize is that healthcare is a very cashflow-dependent business. Once the money turns off, many providers simply don’t have the funds required to continue operating. This is especially true in private practice healthcare. While larger healthcare organizations and corporations may have economies of scale and cash reserves to help them through lean times, many privately held healthcare practices don’t. There will be private healthcare practices that go out of business as a result of the Change Healthcare cyber attacks. This bring up the importance of building a resilient healthcare business.
This week, I share are a few lessons learned from this whole Change Healthcare issue. I also share 5 tips or strategies you can employ to help a build a reliant healthcare business. I shared these briefly on a LinkedIn Post, but thought this topic warranted a whole episode.
What we cover in this Episode:
- 1. It’s important to understand the choke points in your clinic’s cashflow and how to mitigate them
- 2. You must be not only profitable, but also have the necessary cash reserves on hand to float operations through the unexpected
- 3. Waiting gets you killed. There’s no time to act like a deer in the headlights when something like this happens. I know practice owners who waited too long to begin pivoting and changing EDI enrollments, and they may end up paying the price for it
- 4. Having a diversified income stream helps. Private-pay, non-covered services, etc. help offset the crunch caused by disruption in your typical RCM operations
- 5. You need to be able to have those money conversations with everyone
- Achieving Better Outcomes by building strong, resilient healthcare businesses
We post videos of certain podcast episodes, including this episode, which can find on the YouTube Channel.
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If you enjoyed this episode: Join Rafael E. Salazar II, MHS, OTR/L (Rafi), principal of Rehab U Practice Solutions and host of The Better Outcomes Show as he explores the possibilities of a new healthcare. Guests range from clinicians trying new techniques and treatments to executives and entrepreneurs exploring new service delivery methods, business models, and organizational structures. You can sign-up to receive new episodes delivered directly to your inbox by filling out the form below. Learn more about Rehab U Practice Solutions by reading The Manifesto for a New Healthcare, or listen to Episode 000. Or, grab a copy of the book: Better Outcomes: A Guide to Humanizing Healthcare.
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