By Jonathan Miller

The healthcare industry is rapidly evolving and while large systems may be able to easily adopt new technologies and keep pace with the changes, rural providers will struggle to stay current. It’s imperative for these providers to make a proactive decision to optimize their operations, bringing both value and efficiency to their administrative and financial function. To keep up with the complex environment – and more critically, to survive and continue serving their communities – rural hospitals must embrace change.

Several of the key areas which rural hospitals may want to address as they seek to improve efficiency and effectiveness include automation and outsourcing, predictive analytics, reskilling and workforce development, and cybersecurity.

Automation and outsourcing
Mundane manual transactions can absorb a lot of resources and provide an opportunity to improve operational efficiency. Common manual transactions include invoice processing, payroll calculations, expense report handling, bank reconciliations, procurement and purchase order management, medical billing and coding, and financial reporting. By automating these routine transactions, rural health finance departments can significantly reduce workload and minimize errors.

In addition to automation, considering outsourcing non-value-added activities or collaborating with other providers can further streamline operations. By reallocating these tasks, finance departments can free up their staff to focus on strategic, value-added activities that drive organizational growth and efficiency. These strategies not only enhance productivity but also position rural health providers to keep pace with industry advancements and maintain a competitive edge.

Data-driven decisions
Another way rural health providers can prepare for future transformation is by shifting from historical thinking to future-oriented thinking. Adopting a forward-thinking approach means moving away from simply recording and analyzing past data to proactively using data and technology to predict future trends and make informed decisions. This involves leveraging predictive analytics, real-time data monitoring, and advanced decision support systems to anticipate and respond to future challenges. By shifting focus from historical to forward-thinking, rural health providers can make proactive decisions that enhance patient outcomes, optimize operations, and ensure long-term sustainability.

Reskilling and development
Today’s economy is ripe with concerns about job security, changing roles and the ability to adapt to new technologies. By embracing the nature of today’s job market and investing in the development and reskilling of their staff, rural providers can create a more adaptable, motivated and skilled workforce.

This approach will help them navigate the evolving healthcare landscape while maintaining their autonomy and local decision-making power. It's essential to clearly communicate the reasons for these changes, however. Emphasizing that these changes will allow the hospitals to provide high-quality care while remaining financially stable power is crucial.

Providing opportunities for professional growth can improve job satisfaction and retention, reducing turnover and maintaining a skilled workforce. Employees will feel more engaged and valued, leading to a more motivated team. A skilled and adaptable workforce can also better support the organization’s strategic goals, leading to improved patient care, operational efficiency, and financial performance.

Cybersecurity
As rural health providers adopt new technologies and leverage data to improve operational efficiency and patient care, robust IT policies and security measures become increasingly critical. The influx of electronic health records, telehealth services, and predictive analytics necessitates a comprehensive approach to data protection and cybersecurity. Without these measures, our investments in technology and staff development are at risk, and the potential for data breaches and cyber threats increases significantly.

Investments will need to be made in the following areas:
• Comprehensive information technology policies to safeguard sensitive information and ensure the continuity of services.
• Advanced cybersecurity measures that include implementing encryption, multi-factor authentication, and regular security audits.
• Compliance with healthcare regulations.
• Continuous improvement and adaptation to stay ahead of the threats and technology.

In the rapidly evolving landscape of healthcare, the need for rural health providers to streamline administrative and financial functions, invest in staff development, and ensure robust IT policies and security measures is paramount. Embracing these changes is essential for rural providers to remain competitive and sustainable in the evolving healthcare landscape.

About the author: As a partner with the Bonadio Group's Assurance Division, Jonathan Miller’s primary role is overseeing the financial statement audits of his team’s clients. He is also involved in a variety of consulting engagements, including financial due diligence and forecasting, project management and advisory services, operational audits, business planning, and Board governance.