The U.S. healthcare sector, one of the nation’s largest and most intricate industries, faces growing financial challenges. With spending exceeding $4.3 trillion in 2022—accounting for over 17% of GDP, according to the Centers for Medicare and Medicaid Services—the industry grapples with inefficient payment processes and underutilized treasury roles, exacerbating cash flow unpredictability.
Payment Bottlenecks and Operational Risks
Healthcare payment systems remain plagued by inefficiencies. Over half of healthcare payment leaders cite delays in claims processing and payments as significant threats to operations. Despite recognizing the importance of streamlined processes—80% of leaders believe efficiency is critical—only 53% have adequately automated payment workflows.
These challenges stem from a labyrinthine system that includes digital and paper documentation across stakeholders like patients, providers, insurers, and payers. Processes such as eligibility verification and preauthorization further complicate cash flows, straining operational efficiency.
Treasurers: An Overlooked Strategic Resource
Healthcare treasurers play a pivotal role in financial management, yet their contributions are often undervalued. Only 44% of healthcare treasurers describe their cash flows as predictable.
For the remaining 56%, unpredictability stems partly from cultural barriers. Treasurers often operate in isolation, with just 32% of department heads understanding their role. This disconnect sidelines treasurers from strategic discussions, depriving them of the resources and data needed to optimize cash flow and overall financial health.
Missed Opportunities for Collaboration
Treasurers highlight the potential for improved cash flow predictability and financial health through stronger interdepartmental collaboration. Key departments for alignment include finance (cited by 80% of treasurers), strategy (50%), and sales and marketing (46%).
Treasurers report that cross-departmental decision-making could unlock significant benefits, including real-time insights into cash positions and financial strategies. Nearly 78% of treasurers believe such collaboration would enhance cash flow predictability, compared to just 6% of department heads who share this view.
Technology and ROI: The Path Forward
Treasurers also emphasize the potential for higher returns on investment (ROI) through collaborative efforts, including investments in technology and automation. While 64% of treasurers believe collaboration could drive positive ROI, only 36% of other department heads share this optimism.
A Call to Action
Addressing these issues requires a cultural shift within healthcare organizations to recognize treasurers as strategic partners. By integrating treasurers into cross-departmental decision-making and investing in automation, healthcare firms can improve cash flow predictability, operational efficiency, and financial resilience.
With healthcare payments and treasury roles at a crossroads, embracing collaboration and technological innovation is essential to securing the industry’s financial health.
