Regulation compliance is one of the costliest line items when running a hospital or a health clinic.
Considering regulations are not voluntary suggestions, hospitals and providers have no choice but to comply, costly as it may be. Rural health facilities are not immune to these pressures; they may feel them more acutely.
Even without worries over regulation compliance, many rural hospitals and clinics struggle with disproportionate levels of diseases, geographical barriers, and elderly patients. Throw in the ongoing shortage of skilled workers, and the headwinds seem endless.
But hospitals have an option they can consider that will help them mitigate concerns over staffing shortages, inflation, and regulations. The smart and widespread deployment of technology can help hospitals and providers ensure they focus their attention and resources on the initiatives that matter most.
The cost of compliance
Complying with regulations is costly; there is no way around the fact. No matter how well-intentioned, every regulation carries an additional cost.
Consider a finding from the American Hospital Association that an average 161-bed hospital will spend $7.6 million annually to ensure compliance with federal regulations and potentially more for hospitals with specialty beds. That equates to roughly $1,200 per patient admitted.
Rural providers are not unlike their urban and suburban counterparts and must ensure they comply with legislation, whether it helps patients or not.
Consider the “information blocking” regulations of the 21st Century Cures Act (Cures Act), which recently took effect on Oct. 6, 2022, and made sharing electronic health information the expected norm. “Information blocking” is a practice that interferes with accessing, exchanging, or using electronic health information (EHI).
The cost of implementation depends on several variables, including the system a practice previously had. But consider that violations of the regulation carry with them a $1 million fine.
On top of the new costs of maintaining ongoing compliance with the most recent regulations, it won’t be long before yet another regulation comes along and adds another burden with which hospitals must comply.
Technology can help with compliance
The challenge for rural providers is that their lean IT budgets and slim staff make technology installs difficult. Rural hospitals are already stretched thin between tight budgets and a population with unique healthcare needs, and staff want to spend their time and energy on patient care, not regulatory compliance tasks.
However, cumbersome, expensive technology that is difficult or time-consuming to use often does little to help. Practices need technology they can customize to meet their needs and grow with their practice; it’s not about deploying technology for the sake of it.
Navigating the complicated compliance and regulatory environment necessitates new technology solutions to long-standing issues. Technology is one way to help lessen the burden of regulatory compliance, whether it’s training initiatives, electronic health records (EHRs) or protecting patient data.
It can help streamline the management of insurance, Medicare, or Medicaid regulations.
Technology is the secret to success
When deployed correctly, technology can have a force multiplier effect. Technology can help team members accomplish more, but the biggest impact is that it can help reduce costs across an organization.
Consider that technology can help streamline costs elsewhere. It helps reduce errors, automate billing, and keep patient records organized for easy retrieval, freeing up team members’ time so they can focus on caring for patients.
Technology also empowers organizations to focus on the most at-risk patients and address health problems before they grow into larger problems.
Additionally, deploying telehealth enables doctors and nurses to see more patients and lower wait times. Coupling telehealth with wearable devices allows a practice to collect patient data without requiring the patient to come into the office.
In an era of tight budgets and staffing shortages, hospitals and providers must look at new ways to approach long-term problems. Otherwise, they risk repeating the same problems that have held them back for years.
The industry can’t eliminate regulations. But it can set itself up in a better position to respond to and manage them.
By Nathan Shepard, VP of Product, Azalea Health