Operational Efficiency in Healthcare: Challenges and Best Practices

Today, operational efficiency remains a critical aspect of any healthcare facility’s long-term success. When processes and systems are streamlined, it is possible to provide the best patient care while minimizing the chances of error, reducing burnout among workers and ensuring financial stability. At the same time, as the healthcare field continues to evolve and change, keeping operations streamlined isn’t always easy.

Fortunately, with a better understanding of some basic best practices, it is possible to enhance operational efficiency in healthcare — even during times of significant change.

Healthcare Transformation

It’s no secret that the healthcare industry is changing drastically, and that healthcare providers and facilities will have no choice but to “keep up” if they want to remain relevant and competitive.

Across the industry, many healthcare facilities are facing challenges related to staffing shortages, financial struggles and legal/regulatory changes alike. At the same time, the industry is in a unique position to be proactive and position itself now for long-term success.

So, what does it take to optimize efficiency in healthcare operations as we enter the second half of 2025?

Embracing Technology

First, many healthcare facilities would benefit from conducting a thorough assessment of their existing technology, as well as making plans to implement new technology that could enhance efficiency and streamline operations. In recent years, many different kinds of technological innovations have made it possible for healthcare systems to automate tasks and streamline workflows in ways never thought possible previously.

Artificial intelligence (AI), for example, has the potential to aid in everything from patient diagnostics and predictive analytics to administrative workflows. Implementing AI innovations, along with the use of Electronic Health Records (EHR) and Enterprise Resource Planning (ERP) platforms, could make all the difference. Meanwhile, enhancing security protocols and frameworks remains an important aspect of keeping sensitive medical data safe and facilities meeting compliance standards.

Expanding Services to Meet Demand

Now may also be a good time for some healthcare facilities to reassess their services offered, especially as they relate to their specific demographics served. For example, as more of the American population continues to enter their retirement years, there is an increasing demand for senior care services (including both acute and post-acute care).

Likewise, behavioral health and mental health services have been increasing in demand, so some providers may consider adding these kinds of services to support their long-term growth and success.

Preventing Burnout

Across the healthcare workforce, burnout and staff shortages remain a very real problem — particularly in the field of nursing. Healthcare facilities looking to streamline their operational efficiency through reduced turnover and related issues, then, should take measures to improve the workplace culture for these workers.

This may include, for instance, using automation software to alleviate some of the administrative burden for healthcare workers while allowing them to focus on other important areas of their work. These same organizations also should take time to review their compensation and benefits packages to ensure they remain competitive in the job market.

Updating Managed Care Contracts

Often times, healthcare facilities with managed care contracts haven’t actually reviewed their contracts in years, which could result in unfavorable terms or other stipulations that could be stunting their growth. Now is a good time to review those managed care contracts and to renegotiate them as needed with financial sustainability and operational efficiency in mind.

More specifically, facilities that don’t already have a system for reviewing contracts may need to work with a team and process for doing just that. From there, it is possible to get a better feel for which contracts are working well and which may need to be renegotiated down the road.

The Bottom Line Moving Forward

All of these changes, along with the potential for more regulatory and legal changes on the horizon, make now a pivotal time for healthcare facilities across the board. Perhaps more than ever, these facilities are under a great deal of pressure to update their practices, bring in new technologies and strive to become more competitive workplaces.

With these tips in mind, healthcare decision-makers can implement new systems and policies that may help them remain competitive while streamlining their own operations. This, in addition to meeting with a knowledgeable business advisor, can set them up for success no matter what kinds of changes may be on the horizon.

If you have questions or would like to explore solutions tailored to your organization, contact us today.