Managing and Reducing Compliance Costs
Compliance costs represent a heavy burden for health care organizations. According to PricewaterhouseCoopers’ 2014 survey, nearly a third of health care providers estimated their annual corporate compliance budgets add up to more than $1 million. These costs can be more than some practices are able to shoulder and may threaten the livelihood of the owner physicians.
Historically, compliance costs have hit hospitals the hardest, as they serve a larger patient group and employ more health care providers. However, these costs are now affecting smaller practices, including physicians’ offices and post-acute care centers that must show that they meet regulatory guidelines. [This requires that these offices demonstrate compliant use of electronic health records technology to the security of these health care facilities and more.] Because the costs of non-compliance can be so staggering and because these laws are constantly changing, health care providers must pour huge amounts of resources into their compliance programs.
Health care companies can lower their compliance costs. This starts with implementing certain policies and procedures that connect the clinical employees with the financial staff. Additionally, by providing specialized compliance training, these employees will be key in carrying out compliance on both levels. This training must be updated as these laws change.
Because compliance laws are an ever-shifting form of legislation, it behooves health care providers to stay up to date on these changes and keep their employee practices updated. This monitoring can be done through regular internal audits as well as a strong legal team that can communicate changes to the practice. To the best of their ability, health care providers should attempt to streamline this process by eliminating duplicate systems and inefficient communication and practices. These changes may require significant attention and effort, but they will ultimately reduce compliance costs in the long-term.
To learn more about how you can ensure your organization is up to date on compliance laws and practices in New Jersey, New York and Pennsylvania consult the experienced health law lawyers with Buttaci Leardi & Werner, LLC.
- Posted on: Feb 2 2015