Physicians are in short supply. They are costly. Is the APP the answer to the CMO's workforce and budget challenges?
Welcome to our July 2024 cover story. Each month, our editors will be taking a deep dive into the topics that matter most to you in our cover story series. From ways to win the payer/provider war to AI governance, we have a lot of stories up our sleeves this year.
So, what did our team look into this month? Well, it’s time for physician leaders to say the unspoken part out loud: There will never be enough physicians. And even if you can find them and keep them, you can’t pay them all.
The AAMC estimates that in the next 12 years, the U.S. will be 86,000 physicians short, with more than half of those being primary care physicians. The future is a zero sum game, where the clinical need of an aging population runs up against falling numbers of physicians.
To fill those gaps, health systems and hospitals are elevating APPs and giving them more responsibilities. The resulting change in care team design is forcing CMOs and other executives to think about how they manage their physicians to ensure a productive workplace and positive clinical outcomes.
Since this shift, CMOs have begun to wonder if they need as many physicians as they thought, especially since the APPs are sometimes carrying out the majority of the tasks.
So this begs the question, is it time for CMOs to scale back their physicians and usher in more APPs instead? While the question is in part written in jest, it doesn’t mean there aren’t pros and cons to considering APP-lead teams. Our CMO editor Chris Cheney dug into what the experts have to say.
Did you miss our June cover story on turning to automation to streamline revenue cycle operations? No worries, you can read it here.
The president of St. Johns Radiology Associates talks about its middle revenue cycle tech implementation process for HealthLeader's 2023 Revenue Cycle Technology Week podcast sponsored by AGS Health, Inovalon, Omega Healthcare, and Waystar.
Hospitals will be seeing a payment bump, but will it be enough to ward off rising inflation and labor costs?
CMS recently released the fiscal year (FY) 2024 Inpatient Prospective Payment System (IPPS) final rule increasing payment rates by a net 3.1% for FY 2024 for hospitals that are meaningful users of electronic health records and submit quality measure data.
This 3.1% payment update reflects a hospital market basket increase of 3.3% as well as a productivity cut of 0.2%. Overall, the agency will increase hospital payments by $2.2 billion compared to FY 2023, which also includes a $957 million decrease in disproportionate share hospital payments and a $364 million decrease in new medical technology payments, according to the IPPS final rule.
While a $2.2 billion increase seems significant, hospitals are facing historic financial challenges. In fact, hospital margins for the year rose in June, but the divide between the haves and have-nots widened as expenses and economic pressures remained high according to a recent Kaufman Hall analysis.
Most hospitals underperformed in June, even as the median year-to-date operating margin index increased to 1.4%, compared to 0.7% in May.
These challenges highlight the fact that leaders need to stop relying on payment rate increases to keep them afloat.
"This 'new normal' is an incredibly challenging environment for hospitals," Erik Swanson, senior vice president of Data and Analytics with Kaufman Hall, said in a press release regarding it's market analysis.
"It's time for hospital and health system leaders to begin developing and implementing a strategy for long-term sustainability, including expanding their outpatient footprint and re-evaluating where finite resources are being utilized," Swanson said.
The AHA doubled down on the “woefully inadequate” payment rate increase for FY 2024.
In a statement shared with the media, Ashley Thompson, AHA’s senior vice president for public policy analysis and development, said, “The AHA is deeply concerned with CMS’ woefully inadequate inpatient and long-term care hospital payment updates. The agency continues to finalize rate increases that are not commensurate with the near decades-high inflation and increased costs for labor, equipment, drugs and supplies that hospitals across the country are experiencing.”
Drew Smith, director of revenue cycle at MainStreet Family Care, talks implementing text-based bill pay and creating a positive patient financial experience.
Digital payment options are becoming increasingly important for revenue cycle leaders as they seek to bolster their technology and better secure revenue. Perfecting and expanding these options should be a priority, especially since the same challenges that made 2022 the worst financial year since the start of the pandemic haven’t abated.
With patients increasingly demanding convenient, digital payment methods, healthcare providers must adapt to meet changing expectations to stay ahead of the competition, and this is what Drew Smith, director of revenue cycle, at MainStreet Family Care is trying to achieve with its new, text-based bill pay.
“We reduced the volume of paper statements mailed to patients by 11%—and this represents significant savings for our 46-facility system. We’ve also saved five hours in manual work per week for our revenue cycle team, or 260 hours a year,” Smith said.
During his conversation with HealthLeaders, Smith touch more on this and chatted about implementing this new technology, what it means for the systems’ patients, and how it significantly decreased accounts receivable days.
HealthLeaders: Why was it imperative to improve the patient billing experience?
Drew Smith: MainStreet Family Care serves a primarily rural population in Alabama, North Carolina, Georgia, and Florida, and often, we are patients’ only option for care. Even though we’re an urgent care center, people in our communities often turn to us for primary care because of the lack of providers available locally. Some of the areas we serve have a county hospital people can turn to for care, but many do not. Without access to care for conditions like diabetes, which impacts people in rural areas more severely than those in urban areas, the health of these communities would severely decline.
So, it’s vital that we have a healthy balance sheet. This means we depend on patients to pay their out-of-pocket costs of care in a timely manner. But research shows 40% of patients are often confused by their bills. Moreover, consumers believe healthcare providers can make it difficult for them to pay their bills. And in rural areas in particular, we’re finding that inflation is affecting residents’ decisions on whether to seek care or delay treatment. This makes clear communication around how much patients owe for their care after insurance and their options for payment crucial.
Pictured: Drew Smith, director of revenue cycle at MainStreet Family Care. Photo courtesy of LinkedIn.
HealthLeaders: How did you determine there was a need for text-based pay?
Smith: We chose text-based bill pay because we wanted to make it easy for patients to understand their financial responsibility for care and simple to pay their bill. Our goal was not only to speed payment but also reduce cost to collect. Paper statements cost $6 per statement for our organization based on paper and postage costs, the time it takes to post physical checks and respond to returned mail and the need for a lockbox. When we improve cash flow and reduce our cost to collect, we strengthen our ability to open new facilities and extend care to underserved areas—and that promotes better health.
One of the things that was attractive to us about text-based bill payment is that we could reach patients through the device they use most: their cell phone. In the rural communities we serve, most adults own a smartphone. We also don’t get charged when we have an inaccurate mobile number for the patient or the text hasn’t been successfully delivered. And the experiences of AccessOne, the vendor we work with, indicated patients pay their medical bills faster when they receive text notifications for payment. We estimated we could save thousands of dollars a week just by avoiding paper statements for a portion of our population while speeding cash flow.
HealthLeaders: How did your patient population respond to the change?
Smith: We saw an immediate impact on our ability to collect payment sooner through text-to-pay. Since rolling out mobile pay in 2019, 14% of our patients pay their medical bill using our secure text payment feature. Among patients who use mobile pay, 95% pay their balances within two weeks. More than 80% of this bucket make a payment before a paper statement is ever printed. We also offer patients the opportunity to self-enroll in a payment plan using their mobile phone. This makes the process of payment plan enrollment much more convenient. It also adds an element of privacy by enabling patients to take this step from the comfort of home.
Initially, there was some skepticism among our staff about how patients would respond to text-based payment. However, for us, the initial response to text-based medical bill payment was strong. We’ve found that by branding text-based communications to have the same look and feel as other MainStreet Family Care communications, patients more readily accept mobile pay as a valid vehicle for payment.
But that doesn’t mean we haven’t had to modify aspects of our approach. Even as mobile pay exceeded our expectations, when we reached out to patients for feedback, we discovered some people felt the language used in our communications was a little aggressive. In some instances, patients thought the messages were spam. We took a second look at our messaging to soften communication, and the response has been pretty positive. We plan to take another look at our messaging to make sure it still resonates with those we serve in a high-inflation environment.
Of course, some patients still desire paper statements—and that’s OK. Today, we wait a week after a text-based notification is sent before mailing a paper statement. This gives us time to capture payments from those who prefer to pay us electronically while respecting the preferences of those who still want a paper statement. We also allow patients to opt out of mobile notifications.
HealthLeaders: What other benefits has this change created for your organization?
Smith: Text-based payment significantly decreased our cost to collect and our days in accounts receivable. We reduced the volume of paper statements mailed to patients by 11%—and this represents significant savings for our 46-facility system. We’ve also saved five hours in manual work per week for our revenue cycle team, or 260 hours a year. That’s time that can be directed to more value-added tasks, like patient financial counseling.
HealthLeaders: How has the implementation of digital patient payment options improved the patient experience for your organization?
Smith: Digital payment options give us another way of creating better patient financial experiences—and not just around payment. For instance, when patients receive a text from our mobile pay system, they can easily call us with questions right from the payment screen. Many patients who view their statement via text end up calling to make a payment over the phone or update their insurance information. This is a return on investment that may not be reflected on our performance dashboard, but it’s made our call center a better-performing channel while creating stronger connections with patients. We’ve found that the benefit of taking an omnichannel approach to payment is that it builds trust with patients by meeting them where they are. By creating a seamless, consistent financial experience, we can leave a positive impression that carries over to their next encounter with our facility.
Are you interested in sharing your expertise on this topic? Join one of our panels for the upcoming Patient Financial Experience NOW Summiton April 19. E-mail revenue cycle editor Amanda Norris at anorris@hcpro.com for more information on joining the conversation.
This health system's virtual nursing program has matured into a scalable and sustainable care model since last year.
Virtual nursing is quickly becoming a staple of care delivery in nursing workflows. Creative program expansion is what will keep the ball rolling for health systems who want to continue exploring the technology's potential.
Derek Godino, senior director of nursing at Geisinger, recently gave HealthLeaders an update on the health system's virtual nursing progress over the past year.
Godino is part of the HealthLeaders Virtual Nursing Mastermind program, which brings together several health systems to discuss the ins and outs of their virtual nursing programs and what their goals are for now and the future.
New year, new goals
In 2024, Geisinger had several goals for virtual nursing: to open up the workforce by creating a new role to consider, to improve care quality, and to boost nurse and patient engagement and experience. According to Godino, the program has matured into a scalable and sustainable care model.
"We've optimized workflows and refined our onboarding and training protocols," Godino said.
Additionally, Geisinger has put emphasis on integrating virtual nursing into many different aspects of nursing workflows.
"We've also strengthened our interdisciplinary partnerships and improved the integration of virtual nurses into daily clinical routines," Godino said, "enhancing team cohesion and patient experience."
Going forward, the health system plans to expand virtual nursing services into transitional care and chronic disease management in the post-acute and ambulatory spaces, Godino explained. New technologies are also on the horizon for the program.
"From a technology perspective, we are exploring AI-powered decision support tools, biometric monitoring integration, and more advanced virtual rounding capabilities to improve efficiency and patient engagement," Godino said.
The current strategy
Godino explained that the biggest challenge so far has been ensuring consistent technology infrastructure across sites due to infrastructure requirements and limitations. As of right now, Geisinger is working with two to three primary vendors for technology platforms, hardware, and support services.
"This number has slightly decreased as we've consolidated, to streamline integration and support," Godino said. "We anticipate this may change as we evaluate new partnerships for expansion into outpatient settings or adopt more sophisticated analytics and AI tools."
The health system's staffing strategy has moved towards blending experienced nurses who want flexible or alternative roles with nurses who have specialized skillsets that are ideal for remote care, Godino explained.
"We've aligned our recruitment and retention strategies with these profiles and have invested in remote work support and engagement programs to maintain a strong sense of team identity," Godino said.
To measure the program's results, Geisinger is looking at clinical outcomes, such as falls, readmissions, and escalation events, and operational outcomes, such as staff satisfaction and time savings. Godino said they are also looking at financial metrics, like cost avoidance and length of stay.
"Early data has shown positive trends, particularly in nurse workload reduction and improved patient communication, with ongoing efforts to quantify broader ROI," Godino said.
Onward and upward
Moving forward, Geisinger is looking beyond just virtual nursing. According to Godino, the program will serve as a critical connector between inpatient discharge and outpatient follow-up, specifically for care coordination, chronic condition management, and the Geisinger at Home program.
"By embedding virtual nurses into these models, we can provide continuous, proactive support and reinforce care plan adherence, reducing unnecessary readmissions and improving patient satisfaction," Godino said.
The biggest surprise so far, for Godino, has been how quickly both nurses and patients have adapted to the virtual nursing program.
"The acceptance and appreciation from patients, especially around responsiveness and continuity of care, have exceeded expectations," Godino said.
The HealthLeaders Mastermind seriesis an exclusive series of calls and events with healthcare executives. This Virtual NursingMastermind series features ideas, solutions, and insights intoexcelling your virtual nursing program.Please join the community at our LinkedIn page.
To inquire about participating in an upcoming Mastermind series or attending a HealthLeaders Exchange event, email us at exchange@healthleadersmedia.com.
Atrium Health’s Levine Children's Hospital has launched the first Hospital at Home program in the country that focuses on children and their families.
Few would argue that the hospital is no place for a child. But can the Hospital at Home strategy work for children who would otherwise be stuck in a hospital bed?
Levine Children’s Hospital, part of the Atrium Health network, is putting that theory to the test. The 247-bed hospital in Charlotte, North Carolina, launched the nation’s first program to deliver acute-care services to children at home earlier this year.
Stefanie Reed, medical director of the Pediatric Hospital at Home Program, says the program is modeled after Atrium’s Health’s Hospital at Home program, one of hundreds across the country following the Centers for Medicare & Medicaid Services’ (CMS) Acute Hospital Care at Home (AHCAH) model. That model establishes protocols for home treatment of patients who would otherwise be admitted to a hospital, with a mixture of daily in-person and telehealth visits and remote patient monitoring.
But where those programs focus on adult patients, Levine is targeting a very different population.
“We do things a little bit differently,” Reed says, pointing out that whereas adult-level care focuses on the patient, pediatric care often envelops the whole family. The program aims to bring “wrap-around care” to the patient and family, bringing in a much larger mix of care providers, including pediatric hospitalists, certified nurses and pharmacists as well as specially trained paramedics, child life case management and discharge managers and other specialists.
That’s a different dynamic, she says, focusing on team-based care rather than individual visits or services.
Stephanie Reed, medical director of the Pediatric Hospital at Home Program at Atrium's Health's Levine's Children's Hospital. Photo courtesy Levine Children's Hospital.
“It’s important for us to make sure that we really support families and team members throughout the hospitalization by being really, really available to them in ways that probably you don't need to be on the adult side,” Reed says.
A unique program with unique protocols
In many ways, providing home-based care for pediatric patients is more complex. Aside from the use of specialists, Reed says they’re tracking more metrics. Alongside the basic data on care quality, readmission rates, hospital flow and patient safety, they’re taking a closer look at patient experience with care teams and technology. Among the questions being asked: Is this an easier and better way of doing things than in the hospital?
They’ve also built in some “extra checks and balances,” Reed says. Clinicians are asked to visit more than once a day with families. And a clinician--doctor, nurse or paramedic--is online or at the home every time a medication is administered or the child is interacting with technology.
“Even in these early days there are some really positive things,” she says. “We are definitely seeing a lower readmission rate and revisit to the ED rate. We are certainly seeing our patient satisfaction rates off the charts. I've yet to have a family that that said, ‘You know this was no fun.’ Every single family has said, ‘Thank goodness we could do this.’”
Since the program was launched in February, Reed says 40-50 kids have received care at home, and those numbers are growing.
An effective Hospital at Home program, of course, begins in the hospital. Pediatric patients and their network of caregivers need to be screened well in advance of moving care into the home. Reed says the program runs on an “inclusion/exclusion basis,” meaning anyone from infancy up to age 17 can be eligible. That said, the range is currently limited to the Charlotte area, and children in intensive care or with complex care needs aren’t eligible at this point in time.
Reed says they’ve treated everyone from newborns with jaundice to teens dealing with flu or dehydration—and, most importantly, their families.
“We always start with family-centered care,” she points out. “Families should feel engaged and [be able to] participate in the care of the child from the moment that they come into our care.”
“I joke all the time,” she adds. “I've met more aunties and grandmas and pets because I'm in the house and I can really talk to them about the support that this mom needs.”
Assessing the home environment
They also take a close look at the home, assessing social determinants of health (SDOH) like food, transportation and family dynamics. Social workers and case managers play a role in this evaluation.
“We really want to elevate that environment,” she adds. “We know if we can do a good job, whether they're with us in a brick and mortar [setting] or they're discharging from hospital at home, if we've set that groundwork, then you have a healthier child and the likelihood of them needing to come back to an emergency room drops dramatically.”
Even then, when all the boxes are checked, things crop up, and the care team sometimes has to react on the fly. Reed says one family assured them that they had transportation, but when a paramedic visited the home he found that the car battery was dead. So he stayed around to recharge the battery and make sure the care was working.
The program is entirely voluntary, Reed says. And there are times when the hospital is a better place for care than the home.
“If a family is not ready, if the home environment is not ready, if they need our support in a different way, that's OK,” she says. “We will be there and we can reapproach it [later if necessary].”
Reed says the program can be an important bridge from the hospital to the home for both children and their families.
“It’s hard to leave the hospital and go home, even when you’re ready to go home,” she says. “Having someone there, holding your hand, so to speak, making sure you really, truly have what you need, someone that you can call anytime of the day or night is a value in a support system in itself.”
Solving for staffing, burnout, and workplace violence issues will require thinking differently about solutions, says this CEO.
HealthLeaders spoke to Phil Dickison, CEO of the National Council of State Boards of Nursing (NCSBN), about the 2024 National Nursing Workforce Study and what CNOs should take from it. Tune in to hear his insights.
A new project in Illinois aims to connect at risk mothers-to-be with a remote patient monitoring platform that includes a Fitbit, a phone, and an AI assistant named Nurse Avery.
Google and digital health company Drive Health are launching a remote patient monitoring project in rural Illinois to connect expectant mothers with an AI bot to guide them through their pregnancy.
In a partnership with state officials, selected women in Cook County will receive Google Pixel phones, Fitbit devices and access to the Google Cloud to connect with Nurse Avery, an agentic AI health assistant developed by Drive Health. The Healthy Baby program is expected to engage more than 56,000 women over the next few years.
"The Healthy Baby pilot represents a critical step in maternal healthcare, showing how AI can help deliver personalized, proactive health support directly to underserved mothers," Chris Hein, field chief technology officer for Google's Public Sector division, said in a press release. "Using the AI agent, Nurse Avery, and delivering it through Google Pixel phones and Fitbit devices, the program provides real-time support – managing appointments, monitoring vitals, and offering health guidance directly, aiming to make essential resources more readily available."
The program isn't entirely unique. Health systems and state health departments have been trying to use telehealth and digital health for years to connect with at-risk mothers-to-be and monitor them up to and through childbirth. They're driven by maternal mortality rates that place the U.S. well down the list, among developing nations.
In Illinois, that problem is acute. Roughly one-third of all counties in the state struggle with access to maternal care providers, and more than 90% of hospitals lack adequate mental health resources. Among Medicaid populations nationally, 40% of pregnant women have an undiagnosed or untreated mental health concern.
The Health Baby project takes a multi-pronged approach to connecting with at-risk women. The Fitbit device will be used to track participants' activity as well as monitoring heart and sleep data. That information will be collected on Drive Health's platform on participants' Google Pixel phone, from which they can access personalized health recommendations – and Nurse Avery.
This is where digital health outreach meets AI, offering participants are more personal, interactive platform. According to Drive Health executives, Nurse Avery bridges "the gap between providers and patients," answering questions, prompting care plan adherence and providing information on a variety of health concerns, including nutritional support and folic acid intake coordination, vaccination updates, genetic risk assessment, mental health and stress management, and chronic disease management.
As with any RPM program, the key to success will lie in patient engagement. Will expectant mothers be comfortable with using the devices and interacting with an AI assistant? And will the state see improvements in maternal health outcomes as a result? According to officials, they'll be looking for reduced mortality rates, improved birth weight and more full-term pregnancies, as well as reduced costs tied to better access to timely care.
As CNOs deal with nursing shortages, it's critical to understand why they are happening.
The National Council of State Boards of Nursing (NCSBN) recently published the latest 2024 National Nursing Workforce Study which surveyed 800,000 nurses about the state of the nursing workforce.
According to the study, there are five main reasons that nurses are leaving, according to the data. According to Phil Dickison, CEO of NCSBN, solving these issues will take thinking differently.
"Every one of those numbers is a voice, it is not simply a number on a page," Dickison said in regard to the survey participants. "My argument is that [as leaders] we need to be better about…listening to these voices of the nurses before we invoke solutions."
Prioritizing nurse wellbeing has an impact on the entire workforce, not just nurses, says this nurse thought leader.
On this episode of HL Shorts, we hear from Diane Sieg, Registered Nurse, Author, Coach, and Creator of the Well-Being Coaching Initiative, about how health systems benefit from prioritizing nurse wellbeing. Tune in to hear her insights.
