When we make decisions, the first thing we think about is what the decision will cost us today, and what benefits we get today. It’s a balancing act.
Opportunity costs are the potential benefits we miss out on in the future. These aren’t what we immediately think about when making most decisions, but they make a huge impact on us.
Today, we’re exploring the opportunity costs of using paper systems.
1. Missed Opportunities for Data Analysis & Insights
Limited Data Accessibility: Paper records are harder to analyze because they require manual data extraction and entry. This limits your ability to identify trends, make data-driven decisions, and improve care quality.
Inability to Leverage Predictive Analytics: Analyzing data helps identify trends, which can help you make adjustments early. In addition to alerts and dashboards, modern digital systems can use artificial intelligence and machine learning to predict agency needs. Over time, they’ll even help predict client needs and outcomes, optimize care plans, and allocate resources more efficiently.
Paper systems make these opportunities nearly impossible.
Missed Quality Improvement Initiatives: Data analysis can identify areas to improve care delivery. Without digital systems, providers may miss out on opportunities to enhance service quality and client satisfaction.
What could you learn about your operations? What does not knowing potentially cost you?
2. Inefficient Use of Time and Resources
Time-Consuming Processes: Staff spends considerable time on manual data entry, filing, and record retrieval. Would their time not be better spent on direct client care or other value-adding activities?
Slow Response to Changes: In a rapidly changing environment, digital systems allow for quicker updates and adaptations to new regulations, best practices, or client needs. Paper systems are slower to adapt, leading to missed opportunities for improvement or compliance.
Delayed Decision-Making: With digital systems, decision-makers can access real-time data, enabling quicker and more informed decisions. Paper systems delay this process, which can result in slower responses to DSP or client needs.
What is inefficiency costing your agency?
3. Reduced Competitiveness
Lagging Behind Industry Standards: As more HCBS providers adopt digital tools, those sticking with paper systems may find themselves at a competitive disadvantage. They may struggle to meet the expectations of clients and stakeholders who are increasingly expecting modern, efficient, and transparent services.
Missed Partnership Opportunities: Collaboration with other providers, payers, and regulators often requires sharing data. As the world moves to digital solutions, providers using paper systems may miss out on valuable partnerships and funding opportunities.
How might using paper be making it harder to compete today and in the future?
4. Client and Staff Satisfaction
Lower Client Satisfaction: If you went to a hospital or clinic today and saw stacks of paper charts and the doctor using a clipboard, you’d probably see them as outdated, and maybe even a little less professional or efficient.
Is it unreasonable to think this also applies to how clients and their families may perceive providers who use outdated paper systems?
Ultimately, paper may reduce client satisfaction and retention. Digital systems on the other hand, may enhance the client experience by providing timely, accurate information and more personalized care.
Employee Burnout and Turnover: The manual labor associated with paper systems often leads to staff burnout and frustration. This can increase turnover rates and reduce staff morale, leading to additional costs in recruiting and training new employees.
Agencies work really hard to find and retain the right people. How is paper undermining these efforts and costing you?
5. Missed Financial Benefits
Inefficiencies Leading to Higher Operational Costs: While this isn’t a direct opportunity cost, the inefficiencies of paper systems increase operational costs, reducing your ability to invest in growth, innovation, or improved services.
Missed Revenue Opportunities: Digital systems often come with features that can optimize processes, such as real-time monitoring, communication, and alerts. Paper systems can lead to errors or missed billing opportunities, resulting in lost revenue.
How much revenue and growth might paper be costing you?
6. Failure to Scale Operations
Difficulty Scaling: As providers grow, paper systems become increasingly cumbersome and unsustainable. Digital systems are easily scalable and can handle increased client loads, complex care needs, and expanded services without a large increase in administrative burden.
Missed Innovations: Paper systems limit the ability to integrate new technologies, such as mobile apps, that could enhance service delivery, DSP coordination, and client engagement.
How much agency growth might paper be costing you?
7. Non-compliance and Legal Risks
Increased Risk of Non-compliance: Paper systems make it harder to comply with ever-evolving healthcare regulations. Non-compliance can lead to penalties, legal issues, and damaged reputation. Digital systems often have built-in compliance tools that reduce these risks and help you monitor for anything that might need attention.
Inability to Efficiently Handle Audits: In case of an audit, retrieving and organizing paper records is time-consuming and error-prone. This can lead to unfavorable audit outcomes and further legal and financial repercussions.
In addition to the everyday stress of worrying about compliance, what would being out of compliance actually cost?
The Takeaway
Thoughtfully making a decision is a balancing act, and it’s human nature to fixate on the immediate cost and benefit of the decision. But if we zoom out a little and think about opportunity costs, we just might find decisions are a little easier to make.