Revenue Cycle Management – Decision Making Strategies by Phil C. Solomon

by Phil C. Solomon on March 26, 2012

in Best Practices

Make decisions in revenue cycle management like Ben Franklin

Have you ever thought about how you make your revenue cycle management decisions?

In business and in our personal life, we make decisions constantly. In the business of healthcare revenue cycle management, how do you make decisions? Is it difficult balancing strategic objectives, the basic tasks at hand, putting out fires, and taking time to listen and decide on which new ideas and solutions to pursue? How much time do you spend in your day week or month considering new solutions, and then make decisions to implement or pass on them? How do you make decisions about which new strategies and methods are the best for the organization? These are all good questions. Let’s take a look at one of our historical figures and see how he made decisions.

In 1751, Ben Franklin made the decision to rally his countrymen and became an instrumental force behind founding the first hospital in America . He raised ten thousand pounds from the Pennsylvania Assembly and a matching amount from the public to accomplish this. Because of his efforts, the healthcare industry was born.

Ben Franklin made decisions in a very simple way: “My way is to divide half a sheet of paper by a line into two columns; writing over the one Pro and over the other Con. Then during three or four days’ consideration, I put down under the different heads short hints of the different motives, that at different time occur to me, for or against the measure. When I have thus got them altogether in one view, I endeavor to estimate their respective weights; and where I find two, one on each side, that seem equal, I strike them both out. If I judge some two reasons con equal to some three reasons pro, I strike out five; and thus proceeding, I find where the balance lies; and if after a day or two of further consideration, nothing new that is of importance occurs on either side, I come to a determination accordingly.” –Benjamin Franklin

Ben Franklin was an astute decision maker. His decisions led to the discovery, invention and creation of the Franklin Stove, the circulation library, the first fire company, the first original musical instrument, the first Academy and College in 1755 (University of Pennsylvania), the library step stool, the first insurance company, the rocking chair, the Bifocal Glasses and many other important contributions to the American way of life. While he was busy making decisions how he was going to make his contributions to society, he even had time to teach himself to read French, Spanish, Latin, and Italian. Now that’s an amazing example of time management!

There are many methods for making decisions. I uncovered over 40 techniques for making the best decisions possible with the information available. Here are 10 examples:

Kepner-Tregoe Matrix Making risk assessed decisions
Grid Analysis Making a choice balancing many factors
Paired Comparison Analysis Working out relative importance
Analytic Hierarchy Process (AHP) Choosing by weighing up many subjective factors
Pareto Analysis Using the 80:20 rule to prioritize
Quantitative Strategic Planning Matrix (QSPM) Choosing the Best Strategic Way Forward
“What If” Analysis Making Decisions by Exploring Scenarios
Go/No-Go Decisions Deciding Whether to Go Ahead
Cost/Benefit Analysis Evaluating Quantitatively Whether to Follow a Course of Action
Risk Analysis Evaluating and managing the risks that you face

In the business of revenue cycle management , often decisions have to be made quickly, without ample time to systematically go through any of the formal decision making methodologies listed above. When time is of the essence, the most effective decision making strategy many business executives fall back on is to keep an eye on your goals and then let your intuition (gut) suggest the right choice.

How do you make decisions? Have you ever thought about what technique you use for your decision methodology and process? I welcome your thoughts.

Contact me, Phil C. Solomon or check out my profile at Brand Yourself or if you would like addition references or information on this subject.

 

 

 

 

 

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