The healthcare industry is obviously among the most impacted by COVID-19 pandemic as hospitals and other facilities have struggled to meet a torrent of new patient needs. The industry’s back office personnel saw increased demands too. Healthcare spending in the U.S. jumped almost 10% for a total $4.1 trillion in 2020, more than double the rate of increase from the previous year, according to HealthAffairs.org. With rising healthcare costs and heightened focus on limiting exposure in healthcare facilities and back offices, the industry is still going through many changes. In this post we will look at some of the current trends for healthcare technology and accounting.
Automation
Automating mundane tasks to save time and expenses is the number one tech trend in the healthcare industry in 2022, according to a recent article on ERPInNews.com.
"The technology will be able to provide more effective care at a lower cost and free up the time for clinicians"
“This could be done through AI software, which will have the capability to free up focus for patient care," said the article. “The technology will be able to provide more effective care at a lower cost and free up the time for clinicians to spend on more complex and personal care.”
While this article was mostly focused on automating front office and patient care operations, automation in back office departments like accounting will be key to saving operating costs and reducing costly busy work.
Accounts payable automation is proven to save time and costs: Learn More
Telecare
Telecare is seeing growing adoption, according to ERPInNews. This is largely due to health monitoring wearables becoming more accessible along with virtual consultations via video chat and other health gadgets. The trend spiked during the height of the pandemic when hospitals and other medical facilities were doing all they could to reduce occupancy and exposure. The trend will continue now that capabilities and protocols have been established.
“The virtual care industry will be a significant part of the healthcare industry in 2022,” said the article.
First Atlantic Healthcare was forced to speed up its telework and digitalization plans due to the COVID-19 pandemic: Watch the First Atlantic Story on YouTube
Back Office Remote Work
The customer care side of the healthcare industry isn’t alone in adoption of remote work. According to The Boss Magazine, “Before the Covid-19 pandemic, most office staff worked in-house. But this workforce style is fast becoming outdated, and many companies are realizing the benefits of remote work, such as improved flexibility and lower overhead costs.” Read More
Liquidity and Forecasting
With the supply chain woes caused by the pandemic, cash management and forecasting are more important than ever for CFOs and accounting managers, according to several sources online.
Related: 6 Simple Ways to Streamline Healthcare Accounts Payable
Digitalization Sooner
A general move toward more digitalization is expected within the finance function across industries according to Gartner Research. In many cases CFO’s and other financial leaders are lagging behind other departments in terms of digital transformation, Gartner said. While digital transformation has been on the horizon for practically every office for a few years, many are accelerating their plans in order to meet the demands of a changing market.
“Many CFOs are still playing catch-up and continue to grapple with how to turn digital investments into wins,” said Gartner. “Finance leaders are focused on initiatives that will drive transformation, specifically more flexible budgeting and forecasting and elevating digital capabilities within their teams.”
Conclusion
The healthcare industry, like many industries, is still recovering from the financial impacts of the COVID-19 pandemic, but they are also making changes to better weather potential future outbreaks or other global crises that may come. As the trends above suggest, many of these changes are technology related with a focus on virtualization, remote interactions and data-driven insights. Healthcare accounting departments, specifically, are seeking solutions for improved efficiency, reduced costs and improved teleworking capabilities.
