Want to get the most bang for your tech bucks? Stop automating bad practices.
By Pamela J. Gallagher
The business world seems to be moving in the direction of business process automation, yet in the healthcare industry only about 20% of provider organizations are widely engaging in hospital financial automation, according to a new Black Book CFO survey.
Automation can result in immediate cost savings, the elimination of duplicated tasks, and improved visibility. For the healthcare industry in particular, the automation of business processes can result in improved compliance, elimination of errors in workflow processes, enhanced vendor management, and better billing practices, to name a few.
So why are so few hospitals adopting automation for their back-office processes? I believe it’s because they have seen that automation technology doesn’t always save money as it claims. I have learned that when automation is employed without critical thinking around cost and workflow efficiency, the result is automation that will only produce unwanted outcomes—faster.
Consider the actual cost.
I don’t want to come across as overly negative toward technology—I love technology! My doctoral studies examined impact of computerization on business administration in healthcare industry. However, through the course of my research, I learned that despite promises to the contrary, technology doesn’t always save you money. In many cases, the difference in cost savings between companies that had completely automated their business functions and those that didn’t use automation at all was negligible.
As I have said before, all technology has a cost beyond the sticker price. Account for all the costs of automation to measure the impact to the bottom line. Things like training, data storage, equipment, and fees to make ongoing changes to the technology as your company’s needs evolve should be considered in addition to the named price of the technology.
Optimize your workflow.
So then, why doesn’t technology always deliver on its promise to save you money, even when you’ve done all you can to figure out the actual cost of an automation solution? Often it is because the technology automizes an inefficient process. If you skip the crucial step of optimizing your workflow, you end up doing the wrong things faster.
Before you automize your business functions, you must optimize workflow so you’re automating a healthy process. A truly effective automation process requires more than simply taking the current work tasks and expediting them. The best results in automating technology come from expert knowledge of workflow design which paves the way for improved outcomes and return on investment.
Design the automation process.
When you adopt an automation technology, take time to listen to the experts you’ve hired to design and implement it. Let them help you improve your processes to maximize the technology’s capabilities. Working on this as a team will create a shared understanding of these improved, more efficient processes. You need to be on the same page as your expert team to ensure that the design of the automation will help your processes run smoothly.
Also, you must have realistic expectations for what the technology can do. While a benefit of implementing automation is that it eliminates human error and takes out individual judgement, the removal of the human element can be a double-edged sword. Automation technology will not make judgement calls. It will follow the rules of the design. It can only do what it’s programmed to do. This is another reason that bringing the automation experts to the table as you design your processes is so important for implementing an automation technology that is effective.
Automation technology can help healthcare organizations cut costs and better serve employees and patients, but only if it’s done right. By digging into the long-term expenses of using the technology and taking the time to properly align your workflow with the automation process, and right automation partner, businesses can realize the cost savings and increased efficiencies these technologies offer.
Resources:
Webinar: Cut Costs by Centralizing & Automating Finance, Softco
Hospital Financial Automation Under 25% for Most Organizations, Revcycle Intelligence
The CFO Guide to Optimizing Hospital Accounts Payable, Softco
7 Steps to Implementing Automation, Hinduja Global Solutions
The Cost Benefits of Automation in Healthcare, College of Healthcare Information Management Executives