According to a report published by the IMS Institute for Healthcare Informatics, more than $200 billion of avoidable costs are incurred each year in the United States on medication misuse. This represents 8 percent of the nation’s total annual healthcare expenditures and leads to avoidable hospital admissions, outpatient treatments, pharmaceutical prescriptions and emergency room visits for patients.
Based on such data, clearly there is great opportunity to improve financial performance, and hospitals can lead the way when they are able to compare what they’ve spent on drugs, with what they’ve administered, and how much they were eventually reimbursed for those same drugs.
Healthcare leaders are realizing supply chain is central to delivering high-quality healthcare at lower cost. Hendrick Regional Medical Center in Texas achieved an increase of $1.5 million in gross revenue per month after the first six months of linking the facilities pharmaceutical purchases and its chargemaster.
Significant value can be realized through a fresh, strategic approach to procure-to-payment data management. As we help organizations create a supply revenue integrity strategy, we find that it is critical to establish a groundwork for understanding procedure costs and provide a mechanism to address evidence-based intelligence.
To learn more about how a supply revenue integrity program could bring value to your healthcare organization, attend the Craneware Benchmark Series: Key Indicators of Revenue Integrity Excellence to understand how well your organization is performing against Craneware standards and, equally importantly, gather step-by-step best practices to minimize compliance risk and optimize financial performance.