Healthcare providers are still feeling financial strain from the COVID-19 pandemic, with an estimated $200 billion, in losses according to the American Hospital Association.
As many patients delayed or postponed care, healthcare systems faced significant disruptions. To aid in recovery, it’s crucial to streamline accounting practices for improved financial visibility and efficiency across all locations.
If your healthcare organization struggles with month-end financial reporting or lacks a clear view of your finances, these three strategies will help you optimize healthcare accounting processes, saving you time and improving decision-making.
The accrual method of accounting is essential for healthcare organizations as it helps provide a more accurate picture of financial health. Unlike cash-based accounting, which only records transactions when cash is exchanged, the accrual method records revenue and expenses when they are incurred, regardless of cash flow.
For healthcare systems that deal with multiple payers—such as private insurance companies, Medicare, Medicaid, or patient payment plans—the accrual method provides a clearer view of revenue, even when payments are delayed. This method ensures that your organization tracks revenue and expenses in real time, offering better financial forecasting and allowing for more strategic planning.
Healthcare systems often operate across multiple entities or locations, each with its own set of financial challenges. By implementing a multi-entity healthcare accounting software solution, you can simplify financial management across your entire organization and eliminate redundant processes.
With an integrated system, all your financial data is consolidated in real-time, saving time and reducing manual data entry errors. This consolidation allows you to generate comprehensive financial reports, balance sheets, and income statements with just a few clicks.
Key benefits include:
A multi-entity system also integrates with your EMR and billing systems, making it easier for your accounting team to track financial data across all locations with minimal manual input.
Relying on manual accounting processes not only wastes time but can also lead to errors that compromise financial accuracy. According to the institute of Entrepreneurship Development (iED), manual processes can reduce employee satisfaction and slow down overall efficiency.
The good news is that automation in healthcare accounting can significantly reduce the manual workload. By automating workflows for invoice management, expense tracking, and financial reporting, your organization can improve efficiency and accuracy.
Here’s how automation can help:
Automating these routine accounting tasks frees up your staff to focus on more complex financial challenges and strategic initiatives, reducing the chance of burnout while improving overall performance.
"With all the time we’re saving on bank reconciliation, month-end close, and other routine tasks, we can focus on more financial analysis, budgeting, and providing valuable feedback to the company on strategic direction."
– Tera Carpenter, VP of Finance and HR, Dr. Tavel Family Eye Care
Dr. Tavel Family Eye Care faced significant challenges with an outdated accounting system, causing inefficiencies and delays in month-end close. After implementing Gravity Software, they reduced their month-end close time from over 30 days to just 10-15 days, dramatically improving efficiency. Tasks that once took days, such as triple-net lease calculations, now take just a few hours, freeing up the team to focus on higher-level financial analysis and strategic decision-making.
To read more about how Dr. Tavel Family Eye Care transformed their accounting operations, check out the full customer story here.
Managing accounting for multiple healthcare practices can be time-consuming, especially if your organization is still relying on manual processes to consolidate financial data. Gravity Software is built specifically to streamline multi-entity accounting for healthcare systems.
Gravity allows you to:
With Gravity’s user-defined dashboards, you can ensure that relevant financial data is accessible to stakeholders at all levels, from front-line staff to executive decision-makers. Whether you need to monitor day-to-day operations or evaluate high-level financial performance, Gravity’s intuitive and secure platform allows you to keep your organization running smoothly.
If you’re ready to streamline your accounting processes, improve accuracy, and automate time-consuming tasks, Gravity Software can help. Schedule an online demo today to see how Gravity can transform your healthcare accounting and support your path to financial recovery.
Gravity Software
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