Baker Tilly’s Insights on How Healthcare Provider Boards of Directors Can Enhance Organizational Performance in 2024 - Seite 2

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.

Mergers and acquisitions

The ongoing merger and acquisition (M&A) activity in the healthcare provider sector poses opportunities and challenges for provider organizations. Despite the opportunities that can be gained through M&A strategies (e.g., enhanced reimbursement opportunities, expanded geographic reach, creating economies of scale, etc.), provider boards of directors should establish rigorous oversight protocols as organizations execute due diligence processes over the target organization. This can involve examining, and evaluating the accuracy of, historical and prospective financial information, assessing the targets strategic plan, and identifying potential compliance and other risks connected to target organizations. Boards can help ensure that the M&A process adheres to regulatory requirements and best practice industry standards, mitigating risk and elevating the chances of success. One of the most critical components of any M&A transaction is the integration process. Boards of directors need to ensure integration plans are well thought out and understood by all stakeholders. Integration goals established as part of this planning process need to be closely monitored on an ongoing basis to ensure the benefits of the M&A transaction are ultimately realized; this is often not the case with M&A transactions, specifically in the healthcare system space.

Healthcare information technology

Assessing the risks and benefits of healthcare information technology (HIT) initiatives, such as electronic health records (EHR) and enterprise resource planning (ERP) tools, can be a difficult task. Provider boards of directors should ensure provider organizations have effective processes in place to evaluate the performance and effectiveness of HIT systems. Most organizations today focus on optimization of their IT platforms to help drive down expenses, better capture revenue, improve workflows for clinicians, and improve patient satisfaction. The goal here is simple; eliminate unnecessary steps in clinical and other workflows and integrating and streamlining the overall technology environment. With data privacy and security being a priority, provider boards of directors should ensure cybersecurity risks are appropriately mitigated. Further, provider boards should ensure data analytics are being deployed in key operational and strategic areas across the organization, and that action plans are developed to leverage the insights surfacing from the use of data analytics. By providing effective oversight, provider boards support provider organizations as they strive to optimize their electronic environment, effectively managing HIT initiatives which will contribute to the success and effectiveness of the healthcare organization.