In the ever-evolving landscape of healthcare, effective data-driven healthcare planning is paramount to ensure that organizations can meet the demands of patients, manage resources efficiently, and stay ahead of industry changes. One of the most powerful tools at our disposal for driving the planning process is the use of statistics and volume-based forecasting. By leveraging data-driven insights and patient volume trends, healthcare organizations can make informed decisions that lead to better outcomes, improved patient care, and optimized operational performance.
How volumes and data support healthcare decision making
Statistics and volumes provide a quantitative foundation for decision making in healthcare. They provide a clear understanding of current trends, patient demographics, resource utilization, and financial performance. In our healthcare planning implementations, our goal is to leverage these data sources to build dynamic and responsive plans. This approach ensures alignment between real-world activity and the budgeting process, enabling more accurate forecasting and flexible scenario modeling within the planning solution.
Key planning functions enhanced by volume-driven insights
- Financial planning: Accurate financial forecasting is crucial for healthcare organizations to remain financially viable. By analyzing historical financial data and patient volume trends, organizations can predict future revenue streams and budget accordingly. This helps in identifying areas where cost savings can be achieved without compromising patient care.
- Gross revenue: Volumes determine the rate per unit, driving gross revenue and deductions for a volume-driven net revenue process. Detailed modeling by Payor (e.g., Medicare, Commercial) provides additional insights.
- Variable expenses: Driving variable expenses like medical supplies and drugs allows the system to use drivers that align with departmental units to accurately reflect business operations. Like gross revenue, using cost per unit rates keeps all related variable components aligned with the volumes impacting the organization.
- Labor/resource allocation: Analyzing department-level patient volumes and utilization metrics helps organizations allocate staff, equipment, and facilities more efficiently. For instance, patterns in emergency room usage can inform seasonal staffing plans.
- Strategic planning: Long-term strategies benefit from insights into operational performance, market trends, and demographic shifts. Data-driven healthcare planning with statistics and volumes enables leaders to build future-ready roadmaps aligned with evolving patient needs and competitive pressures.
How departments decide or define what volumes to use
Having a user-friendly and intuitive interface to allow clients to drive how their variable components will ultimately leverage the available statistics is a key pillar of an effective and scalable planning solution. Determining the appropriate volumes to use in the healthcare planning process involves several strategic steps and operational considerations.
Mapping volume trends for accurate planning
Trending volumes by various methods like year over year, current year, or calculated relationships such as global discharges to patient days is key. Volume relationships vary by department, so mapping flexibility is essential.
Selecting volume drivers for accurate budget forecasting
Every department will have volumes used for reporting, but some will serve as the driver of the variable portions of the income statement. Flexibility and control in pointing driver volumes is crucial. At times even a secondary stat can be a driver stat. Using patient days for a nursing unit but total patient days from an area that creates none (e.g., environmental services) should not require complex integration. The driver selection process involves both the administrator of the system and the user. Overall, the solution should support both centralized, decentralized, and complex driver relationships when it comes to the volume processes for budget management.
Driver details for complex planning configurations
A single department may require up to five or more statistics as drivers, so scalability in a solution is essential. Additionally, the number of drivers needed for the income statement is not a one-size-fits-all scenario. You may have IP, OP, clinic, home health, and rehab revenue. There may be medical supplies and one-to-one relationships of volume to implants situations. There could be a need to drive labor with one set of drivers and expenses with another. Being able to associate multiple drivers to the chart of account lines should be easily mapped so that control of the revenue and expense outcomes makes sense.
Planning better with Alithya’s healthcare accelerator
Data plays a critical role in effective healthcare planning. The Alithya Healthcare Planning Plus Accelerator was built to help organizations harness the full potential of statistics and volumes to drive accurate, scalable, and flexible planning processes. Developed by Alithya, this solution supports every step of your data-driven transformation. Here's how we can assist:
- Comprehensive data integration: Our solution integrates data from various sources, including electronic health records (EHRs), financial systems, and operational databases. This provides a unified view of the organization's data, enabling more accurate and comprehensive analysis.
- Advanced analytics: Oracle’s capability to leverage advanced reporting and analytical capabilities allow you to transform raw data into actionable insights. Our platform includes predictive modeling, trend analysis, and scenario planning capabilities, allowing organizations to anticipate future needs and make informed decisions.
- User-friendly interface: We prioritize ease of use, ensuring that our platform is accessible to users with varying levels of technical expertise. The intuitive interface allows healthcare professionals to interact with data, generate reports, and visualize trends without requiring advanced analytical skills.
- Configured solutions: Every healthcare organization is unique, and our solutions can easily be configured to meet the specific needs of each client. We work closely with organizations to understand their goals and challenges, delivering solutions that drive results.
- Training and support: Successful implementation of data-driven planning processes requires ongoing support and training. Alithya provides comprehensive training programs and continuous support to ensure that organizations can fully leverage the capabilities of the platform until clients are fully capable of driving their own success.
- Proven track record: Alithya has a proven track record of helping healthcare organizations achieve their planning goals. Our clients have seen significant improvements in resource allocation, financial performance, and more streamlined planning processes using our planning methodologies.
Turning data into impact across healthcare planning
In today's data-driven world, the importance of using statistics and volumes to drive the planning process in healthcare cannot be overstated. By leveraging data insights, healthcare organizations can make informed decisions that lead to better patient care, optimized operations, and financial stability. Oracle and our solutions are designed to empower organizations with the tools and expertise needed to harness the power of data and drive successful planning initiatives. Together, we can transform healthcare planning and achieve better outcomes for patients and providers alike. To learn how we can support your planning goals, contact us today.
This article was written in collaboration with Cherisse Worlds, Oracle Health Care Solutions Lead Advisor.