In today’s economy, many hospitals and healthcare organizations are finding themselves struggling with a question: who pays for uncompensated care? The amount of hospital resources spent on uncompensated care has risen in the past few years, and it continues to rise. What can hospitals do to keep themselves financially afloat? With any crisis, the best approach is to be prepared. Financial forecasting can be an immensely helpful tool for hospitals to better prepare themselves for the possibility of elevated levels of bad debt or charity care. Here’s how hospitals can forecast for uncompensated care.
Whether you’re looking for information on how hospitals can forecast for uncompensated care or other tips on healthcare financial planning, Questica is here to help. Since 1998, Questica has worked to make handling finances easier and better for hospitals, healthcare organizations, and more. We manage over $63 billion in annual public sector and non-profit budgets, and we want to help you. Please visit our website for more information and consider signing up for one of our free webinars.
How hospitals can forecast for uncompensated care
Expect bad debt
Uncompensated care usually comes in two forms: charity care, where the hospital offers care to the patient for free or at a large discount; and bad debt, where the hospital expects to receive full payment, but in actuality, does not. This article about uncompensated care in Deluth, MN outlines two major hospitals which, in both cases, have a significantly higher level of bad debt than charity care. When creating your financial forecast, plan for far less money from patients than you might expect.
Synchronize your goals and forecasting methods
The healthcare industry has changed significantly over the years, and its become increasingly necessary for hospitals to be flexible and offer more dynamic forecasting. By synchronizing your rolling forecasts, long-term goals, and your annual budgets, you can provide a more thorough and detailed outlook on the future, one that you’re not locked into. This method also helps to create multiple projections and strategies, in the event that the actual numbers are lower (or higher) than you anticipate.
Questica software helps your hospital plan for uncompensated care
Questica budgeting software is the solution for how hospitals can forecast for uncompensated care. With Questica, you can easily align your multiple goals and projections. You can organize your data in one place, and, create multiple projections. And because we provide the ability to organize your data in the cloud, it’s easy to manage and access. We integrate with your already existing financial systems, which allows you to use your General Ledger data. Questica understand the demanding needs of healthcare organizations and we’ve built our software to address and accommodate those needs.
We are a passionate team of technology experts and business specialists with decades of collective experience managing finances and budgeting software. You’ll be amazed at how much time and energy your facility will save with dedicated financial software like Questica Budget. To learn more about Questica and how our software can help you, read a or take a product tour.