Rural healthcare faces distinct challenges — from limited resources to high operational costs — making effective financial management critical. As these complexities bear down on rural providers, it’s up to industry leaders to find solutions that combat these unique issues.
Stacy Taylor, chief financial officer at Nebraska’s Nemaha County Hospital, has seen rural health challenges firsthand and worked to identify opportunities to ease them. As an experienced healthcare CFO, Stacy has a deep understanding of the sector’s nuances and shares her insights on managing rural healthcare finances.
Challenges and strategies for not-for-profit hospitals
CFO
Nemaha County
Hospital
Not-for-profit hospitals face a difficult environment, with high labor costs and staffing shortages at the forefront. These issues are expected to persist, pressing CFOs to devise effective strategies. According to Stacy, key among these strategies is to control labor expenses, diversify revenue streams and manage budgets with precision.
As a critical access hospital, Nemaha County Hospital has worked to maintain financial stability by staying true to the critical access model of reimbursement as well as to its outpatient business, according to Taylor. This approach is based on the fundamental knowledge that healthcare organizations must make strategic financial and operational plans in order to flourish.
Trends in hospital financial management
Improving financial performance starts by understanding the specific stressors confronting rural facilities. When assessing hospital financial management trends, three areas of focus emerge from earnings reports:
- Labor costs: Amid persistent workforce shortages, hospitals strive to mitigate labor costs, though the overall expense burden continues to challenge many. Despite some success in cutting costs, the financial pressure from rising inpatient expenses remains significant.
- Admissions revenue: A notable uptick in hospital admissions and outpatient visits signals a trend toward outpatient services, underlining its importance for the stability and growth of institutions such as Nemaha County Hospital.
- Margins: An interesting trend is the slight improvement in operating margins, attributed partly to the reduction in labor costs and an increased focus on outpatient revenue streams.
Emphasis on outpatient services
Outpatient services are a cornerstone of how Taylor and other rural providers are managing financial challenges. For example, Nemaha County Hospital turned toward outpatient treatment, which now accounts for 80% of its business — roughly 25,000 outpatients annually.
This shift responded to immediate financial pressures and positioned the hospital for enhanced stability by leveraging the growing demand for outpatient care. But it required a willingness to pivot. To stay in the market, Nemaha County Hospital is bringing in as many outpatient doctors as possible from bigger cities.
Innovation in rural healthcare
In adapting to the broader financial landscape, Nemaha County Hospital also innovated its operations. It streamlined efficiency by merging medical records with the business office and introduced cross-training among staff.
By emphasizing workforce optimization, revenue cycle education and financial management, Taylor showcased effective leadership in addressing the unique challenges of critical access healthcare. These innovative strategies not only cater to immediate financial and operational needs but also allow for sustainable healthcare delivery in rural settings.
To get a complete picture of your organization’s financial health, visit trubridge.com/solutions/revenue-analysis.
Sponsored by
TruBridge has over four decades of experience connecting providers, patients and communities with innovative solutions that create real value by supporting both the financial and clinical side of healthcare delivery.
Our industry-leading, HFMA Peer Reviewed® suite of revenue cycle management (RCM) offerings combine unparalleled visibility and transparency to enhance productivity and support the financial health of healthcare organizations across all care settings.
Our solutions champion end-to-end, data-driven patient journeys that support value-based care, improve outcomes, and increase patient satisfaction. We support efficient patient care with electronic health record (EHR) product offerings that successfully integrate data between care settings.
For more information, visit www.trubridge.com.