Article
How healthcare provider boards of directors can enhance organizational performance in 2024
April 23, 2024 · Authored by Mark J. Ross
Boards of directors for healthcare providers play a crucial role in preserving financial integrity and operational efficiency. It is essential for boards to remain attentive to emerging industry trends to proactively address potential challenges and exploit opportunities. Awareness of trends allows boards to adjust financial and expansion strategies, refine risk management protocols and update compliance measures accordingly.
In the evolving landscape of healthcare provider organizations, technological advancements and ever-changing healthcare reimbursement and regulatory policies can significantly influence financial stability. By proactively staying up-to date on trends, boards of directors can make well informed decisions, bolster long-term financial sustainability, and ensure that provider organizations are equipped to accomplish their number one objective, which is to deliver high-quality care while upholding fiscal responsibility.
Beyond elevating awareness relative to industry trends, the remainder of this article addresses a few specific topics that should be front of mind for boards in the healthcare provider space.
Price transparency
Ever-changing regulations enacted by the Centers for Medicare & Medicaid Services (CMS) raise increased scrutiny and steep penalties for noncompliance. Boards of directors should ensure that organizations are aware of applicable law and regulations, and an effective compliance program is in place to ensure compliance with these laws the regulations.
A timely example of the ever-changing regulatory environment for healthcare systems would be the price transparency regulations. Navigating the intricacies of the updated price transparency guidelines presents hurdles for hospital organizations, often requiring modifications to systems, processes, and reporting. For the deadline approaching July 1, 2024, and thereafter, provider boards of directors should ensure hospitals standardize and simplify reporting responsibilities to ensure adherence to these regulations as recent CMS enforcement actions against noncompliant providers are on the rise.
Although price transparency is viewed as a regulatory compliance matter by many, providers can now use pricing information in the public domain to analyze and benchmark competitor and payer pricing. The process can add significant value to a provider organization. Boards of directors should ensure providers have processes in place to comply and benefit from this new legislation through improved pricing strategies and more effective managed care contract negotiations. Viewing this legislation as an opportunity to improve will help to change the mindset from compliance to value added.
