Investor Newsletter December 2022

KLAS Market Insights

Revenue Cycle Management as the Financial Lifeblood of Healthcare

During KLAS’ Digital Health Investment Symposium (DHIS) this past September, we discussed patient care in healthcare, people in healthcare, and business in healthcare. The overarching goal of a healthcare system is to care for patients and improve their health outcomes; however, this goal is fulfilled by the people and business of a healthcare organization. The primary component of business is revenue cycle management (RCM), the financial lifeblood of healthcare.

Unfortunately, RCM is extraordinarily complex and labor intensive, and provider organizations are seeking to ensure revenue by investing in both software and outsourced services. Staffing shortages in the market have made outsourcing more appealing, since firms with a national client base can recruit from a wider pool of resources and facilitate economies of scale that aren’t available to smaller organizations. KLAS’ Decision Insights data shows that a major driver for organizations considering or selecting a firm is the expertise they bring to the table. Respondents say firms can use their expertise to suggest best practices and improve the organization’s overall revenue performance.

Newer firms may struggle to enter the market without (1) extensive capital resources to invest in economies of scale and (2) proven expertise that can be leveraged by client organizations. For existing players in the space, competition is heightened because costs for partial outsourcing are relatively low. This competitive pressure is prompting firms to expand their repertoire via mergers and acquisitions, all in an effort to be top of mind for prospective clients.

Warm Holiday Wishes

As the curtain is about to close on 2022, we at KLAS reflect on what a remarkable and peculiar year 2022 has been. No year would be complete without its triumphs and challenges, and the KLAS Investment Advisory team extends our appreciation to each of you for the industry-progressing partnerships we have been privileged to participate in this last year. May your holiday season be filled with joy, glad tidings, and quality time with family, friends, and loved ones. Thank you for choosing to work with KLAS, and we look forward to supporting your healthcare investment initiatives in 2023!

To contact the KLAS Investment Advisory team, please email us directly or send an email to investorservices@klasresearch.com.

KLAS Reports—Recently Published & Upcoming

KLAS Emerging Technology Reports

Each week, dozens of new companies knock on the doors of provider organizations and health systems to present their latest innovative solutions. KLAS publishes 70–80 individual reports per year which provide early performance data on solutions that have been designated as emerging, disruptive, or innovative. To view the KLAS reports library, visit our website.

IQVIA Healthplug
First Look 2022

TransformativeMed Cores
Emerging Solutions Spotlight 2022

Market Specialty Reports

KLAS publishes 75+ specialty reports annually, providing market insight based on customer perceptions of and experiences with the vendor/consultant solutions they employ. KLAS also validates industry trends, emerging technologies, purchasing decision insights, and market energy. Interested in KLAS report purchase options? Contact the KLAS Investment Advisory team at investorservices@klasresearch.com.

Home-Based Post–Acute Care 2022: Top Challenges in the Aftermath of the Pandemic

PACS 2022: Changing Market Leads to Volatility Among Large- to Small-Volume Organizations

Upcoming Specialty & Emerging Technology Reports

CDS Point-of-Care Reference 2022:
How Are Solutions Being Adopted by Clinical Users?

CDS reference tools enable clinical users to follow standard treatment recommendations and more quickly and confidently make clinical decisions. However, tools that lack strong content, searchability, and EMR integration are not efficient for point-of-care workflows and can frustrate users, especially those already experiencing burnout. Some CDS vendors are addressing user frustration and report their solutions have evolved to be more user friendly. To understand the customer experience and how each solution is being adopted, this report draws on feedback from a subset of clinical users (defined in this report as physicians, nurses, and pharmacists) as well as feedback from vendors’ general customer bases.

Enterprise Imaging 2022:
Which Vendors Are Delivering in a Challenging Environment?

Many healthcare organizations are working to expand and mature their enterprise imaging (EI) strategies to bring together more facilities and service lines. At the same time, both vendors and healthcare organizations are experiencing staffing and budget constraints, leading to a host of financial and operational difficulties. In this environment, some vendors are surmounting challenges and providing the partnership and innovation customers need, while others are struggling to deliver consistently. This report provides an update on vendor performance, based on perspectives from 178 organizations live with EI.

Financial Planning & Analysis 2022:
Which Vendor Is Helping Organizations Make the Most of Their Technology?

Healthcare organizations are taking a new approach to planning and budgeting—moving away from static yearly budgets set by a financial team toward an agile, rolling approach that leverages data from multiple sources and involves non-finance personnel. This report provides an introduction on the two main financial planning and analysis vendors that organizations are using to support this change—Strata Decision Technology and Syntellis Performance Solutions. The following pages share customer insights on the solutions’ functionality and integration and how well the vendors help customers adopt tools to meet their budgeting needs.

IV Workflow Management 2022:
Functionality Drives Recent Purchases

Health systems rely on IV workflow management solutions to streamline and improve pharmacy operations. Functionality has emerged as the most important criteria for prospective clients; however, no vendor both meets all customer needs and performs at a high level, and each customer base notes gaps in functionality. To (1) understand which solutions are being selected and why and (2) help provider organizations select solutions that meet their unique needs, this report examines 35 recently finalized or pending purchase decisions validated by KLAS between February 2020 and June 2022. Customer satisfaction data provides additional context on which vendors best meet customer expectations.

Midsize/Large Practice Management 2022:
Which Vendors Stand Out in an Established Market?

Most practice management (PM) solutions have lengthy tenure in the market, yet not all vendors successfully meet practices’ needs—which include strong technology and a vendor who acts as a partner in customer success. Historically, KLAS has split PM data by midsize (11–75 physicians) and large practices (76+ physicians); however, independent practices (clinics not owned by a hospital/health system) and owned practices (clinics owned by a hospital/health system) also have different needs and gravitate toward different vendors. Due to this trend, this report examines which PM vendors best deliver to customers’ expectations for midsize and large practices as well as for independent and owned practices.

Public Cloud Providers 2022:
Delivering Cloud Technology to HIT Vendors

Public cloud providers are increasingly important to how HIT vendors deliver software to provider and payer organizations. To help HIT vendors make informed decisions about which public cloud provider can best meet their needs, this report examines (1) how industry adoption of public cloud solutions is progressing and (2) how well public cloud providers perform in key areas, including their strengths and improvement opportunities.

Transitions of Care 2022:
What Are Organizations Using or Considering to Facilitate Effective Care Transitions?

Inefficient care transitions lead to wasted time and energy, increased risk of human error, and potentially poor experiences for both patients and providers. Despite the industry’s attempts to ensure the right information is sent to the right people at the right time, healthcare organizations must often revert to manual processes for data entry, verification, and communication. Some organizations use or want to use technology to streamline their transitions of care (TOC). This report—KLAS’ first to look at transitions of care—draws from the perspectives of 95 healthcare leaders across multiple care settings to understand their adoption of care transition technology, the challenges they encounter in their care setting, and the vendors they are considering.

Harris Affinity Decision Support Costing:
First Look Report 2022

Healthcare organizations need accessible and accurate cost information to combat shrinking margins and assist in the transition to value-based care. By organizing clinical, supply chain, and reimbursement information into actionable costing data, Harris Affinity’s ADS Costing helps provider organizations understand utilization costs to make informed decisions and manage spending. This report examines the experiences of US and Canadian customers of ADS Costing.

Moxe Digital ROI:
Emerging Solutions Spotlight 2022

Moxe aims to connect provider and payer organizations, simplify and expand data collection methods, and deliver data that drives smarter, simpler healthcare operations and improved outcomes. The Digital ROI solution automates release of information (ROI) so that provider organizations can focus on patients and payers can get clinical data when and how they need it. This report examines customers’ experiences and satisfaction with the Moxe product.

Rhinogram:
First Look 2022

Administrative staff at healthcare organizations need to effectively facilitate and coordinate care for patients and guide them through their healthcare journey. Effective administrative communication can improve the overall patient experience and simultaneously free up clinicians so they can focus on providing quality care. This report offers a first look at Rhinogram, a solution intended to deliver administrative communication to patients through text messaging, live video consults, social media messaging, website messaging, and contactless payment options.

Sectra Digital Pathology:
Emerging Technology Spotlight 2022

In the US, digital pathology for primary diagnosis is relatively new and still gaining traction. Robust and reliable digital pathology solutions are needed to accommodate the growth of this field. Sectra’s digital pathology solution already has a strong presence in Europe and is starting to gain one in the US as digital pathology for primary diagnosis becomes more common. This report examines the experience of Sectra’s first US customers.

To make a purchase or find more information on KLAS reports, contact the KLAS Investment Advisory team at investorservices@klasresearch.com.

KLAS Events 2023