Using Human Capital Development to Reduce Healthcare Administrative Costs

Some healthcare leaders are unable to address complex billing and insurance activities, which results in increased administrative costs and a significant reduction in revenue. Grounded in the theory of human capital development, the purpose of this qualitative single case study was to explore training and development strategies used by health care leaders to address complex billing and insurance requirements. The participants included 5 leaders from different areas of the revenue cycle in one healthcare organization in Michigan, who successfully implemented strategies to reduce administrative costs. Data were collected using semistructured interviews and a review of organizational documentation. Thematic analysis using Yin’s approach to data analysis resulted in the emergence of 6 themes: (a) providing workflow specifics and visual aids, (b) using managers as training and development coaches, (c) identification of a formal training program, (d) validation of training effectiveness, (e) hands-on practice and review of examples, and (f) alignment to organizational performance goals. A key recommendation is for healthcare leaders to adopt a training and development program that emulates the lean training model, improving administrative costs through the individuals’ skills and knowledge. Implications for positive social change include the potential to develop skills and knowledge to address the complexities of billing and insurance requirements and reduce delays in care for individuals and administrative costs for healthcare organizations and society