In a Dreadful Economy, Hospitals Should Maximize ARM Support Options

Almost a full month into the fourth quarter of 2008, the healthcare industry—like many other major players in the U.S. economy—is looking a little peaked.  Patients (too many of them un- or underinsured) are facing intense pressure simply to afford food, fuel, and four walls and a roof.  Havoc on Wall Street has paralyzed credit markets and severely restricted hospitals’ ability to obtain bank financing.

In addition, insideARM’s Cynthia Wilson reported earlier this week (“New Regulatory Requirements for Hospitals Present ARM Opportunities," October 21) that fast-approaching regulatory changes are sure to cost hospitals substantial amounts of money in order be in compliance.

How’s that for adding insult to injury?

The mounting healthcare finance crisis won’t be easily solved, just as a lollipop at the end of a doctor visit is inadequate consolation if you’ve just been diagnosed with Hodgkin’s disease.  But some of the unavoidable costs tied to new regulatory mandates—especially in areas related to data security, accurate reporting of charity care buckets, and document management—might be mitigated if healthcare providers call on their business partners in the ARM industry to augment the products and services they currently provide. 

For example, experienced—out of internal operational necessity—in protecting sensitive consumer information, a collection agency already engaged by a hospital to recover delinquent accounts may be able to advise its client on how to insure the proper safeguarding of medical records.  Expanding established business relationships will certainly cost less than forging entirely new ones.  And healthcare agencies—the inheritors of increased placement volumes but dwindling liquidation rates in the current economic environment—can seize an opportunity monetize existing (but underdeveloped) best practices.

We’re all familiar with the phrase, “If I had a nickel for every…”  Under challenging economic circumstances, capitalizing on the business of “stuff you see and do everyday” is a sure way to create efficiencies and maximize value.