Iranian public hospitals' challenges regarding revenue deficits: A mixed-method study

Ali Sarabi-Asiabar1, Saeide Alidoost1, Rahim Sohrabi2

  • 1Health Management and Economics Research Center, Iran University of Medical Sciences, Tehran, Iran.

Insights

Hospital revenue deficits stem from documentation gaps and insurance claim issues, impacting surgical and inpatient units. Addressing these requires management commitment and consistent insurance claim evaluation to reduce financial losses.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Hospital Administration

Background:

  • Hospitals rely heavily on insurance funding.
  • Revenue deficits arise from unfiled services and unpaid insurance claims.
  • Understanding these deficits is crucial for financial stability.

Purpose of the Study:

  • To describe hospital revenue deficits in Iranian public hospitals.
  • To identify underlying causes and contributing factors.
  • To explore management strategies and challenges.

Main Methods:

  • Mixed-method approach combining qualitative and quantitative data.
  • Qualitative data from 17 semi-structured interviews analyzed using an analytical framework.
  • Quantitative data analyzed using the TOPSIS method.

Main Results:

  • Five themes identified: bottlenecks, direct causes, root causes, management strategies, and challenges.
  • Surgical units, operating rooms, and inpatient units are key sources of revenue deficit due to documentation and claim issues.
  • Lack of senior management commitment and inconsistent insurance claim evaluation are major barriers.

Conclusions:

  • Revenue deficits are prevalent across hospital departments and service conversion stages.
  • Human and organizational factors significantly contribute to these deficits.
  • Focusing on deduction causes and interdepartmental collaboration is vital for reduction.

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