In each edition of Cycle Up, we sit down with one of the leading voices on the Meduit team. In this issue, we caught up with Scott Warshaw, Meduit’s Chief Financial Officer, about reimbursement pressure, the evolving role of AI, and why some of the most important RCM decisions transcend the spreadsheet. Enjoy the conversation.
Q. You’ve only been at Meduit a short time. What’s stood out the most so far?
A. I’d say the breadth of RCM experience and expertise across the board has surpassed my expectations. Meduit has a deep bench of people with long-tenured backgrounds in the industry, and I think that leads to a level of attention to detail in the delivery of our services that’s unique. And it translates into great outcomes for our clients.
Q. CFOs have a broad perspective across an entire organization. How does that view influence the decisions you make beyond the numbers themselves?
A. My role ultimately boils down to enabling the business to achieve its growth strategy. It’s really about facilitating investment. How are we going to put money to work in different areas of the business, different end markets, and into the things that matter for our clients?
I’m fortunate to work with seasoned professionals across the business who are knowledgeable about the market and the services we provide. Together, we’re able to make informed decisions as a team. The numbers may only tell part of the story. The strategic context around those numbers plays a meaningful role in decision-making.
Q. Hospitals are under more pressure than ever to do more with limited resources. From a CFO’s perspective, how should healthcare leaders think about productivity and capacity today?
A. We all face capacity constraints in some regard. At the individual level, we only have so many hours in the day and so much energy to give. At an organizational level, there are limitations on capital and time.
Healthcare leaders can and should improve capacity by leveraging tools and technology. But productivity is really about how effectively organizations can put that limited capacity to work.
Meduit’s model aligns our interests with those of the provider and seeks to deliver a patient experience that follows the golden rule, knowing each of us has been, and will be, a patient on the receiving end of care at some point in our lives. That’s what helps these organizations become more productive. It’s not necessarily serving more patients. It’s getting paid fairly and in a timely manner for the services they’re already providing.
Q. As AI becomes more capable, how does that change the way you think about investing in technology and people? How do you see the two working together in the future?
A. We are investors in AI to the extent that it enables our people. For example, when AI tools can transcribe calls so an agent doesn’t have to type up call notes, the agent can listen more intently to what the patient is saying and move on to the next caller without delay.
We have thousands of employees enabled by these tools, so when we’re hiring, we’re looking for character first. That means attitude, work ethic, things of that nature, with specific technical skills second.
Healthcare is super personal. When I or somebody in my family has a serious health issue, I will undoubtedly choose to speak with a person who is compassionate and can empathize with the situation, and if they’re supported by an AI tool, that’s great.
There are certainly organizations out there that are trying to automate everything. And there are folks who think they should white-glove everything. I think Meduit takes a thoughtful approach to deliver the right experience for the situation, particularly when somebody is staring down a bill that they can’t afford.
Q. What financial pressures facing hospitals and health systems concern you most right now?
A. I think it’s reimbursement, which is a challenge with both first- and third-party payers. You have denied claims that aren’t worked and unpaid insurance claims that lead to unexpected, hard-to-collect patient balances. We’ve only seen this play out more as prices rise, utilization rises, and there’s more patient responsibility.
Being able to close that reimbursement gap is one of the top concerns facing hospitals and health systems today.
Q. What do you think will change the most about the way healthcare organizations think about revenue cycle performance and financial operations?
A. I think the growing trend of higher patient responsibility is here to stay. We’ve gone from a revenue cycle operation that was primarily a B2B collection process focused on government and commercial insurance to a consumer collections and financial engagement process.
That means focusing on clear, accurate patient statements, digital communications, and easy payment options that fit the person’s needs.
For Meduit, it’s about how efficiently we can identify, communicate, and collect on patient obligations while also delivering the best possible customer experience. That’s something we’ve always seen as a priority, and I think it’s only going to become more important for the clients we serve.