March 19, 2019
The evolution of budgeting in healthcare is exciting and intelligent. Perhaps the most arduous process in healthcare administration is setting and maintaining an accurate budget. Leaders like John Gragg, COO of EPSi, are here to change that.
In partnership with innovative companies like EPSi, health systems can innovate the way they handle budgeting to make it more manageable than ever.
Increased profit margins, higher staff satisfaction and better patient care are just a few of the reasons you need to be paying attention to the evolution of budgeting and budgeting technology.
In Gragg’s article “The Next Generation of Budgeting for Healthcare,” first published in the Winter 2019 issue of Strategic Financial Planning, by the Healthcare Financial Management Association (HFMA), he covers some of the new developments in budgeting healthcare, including flex budgeting and rolling budgets.
Flex budgeting takes the actual measured volumes experienced by hospital systems and flexes variable budget profits and expenses. This results in a comprehensive look into what actually happened in the hospital instead of assumptions based on outdated or inaccurate data.
Perhaps of most interest to hospital finance executives who are tuned in to how technology is driving transformation in their organizations, Gragg discusses the role that Machine Learning has in budgeting’s future, and how implementing today can keep your hospital ahead of the curve. Machine Learning/AI capabilities include identifying revenue and expense trends and long-term influences on institutions’ budgets and strategic plans.
For healthcare finance leaders, integrating a hybrid framework as described by Gragg can directly address some of the challenges they face today with strategies designed to take them into the future.