What benefit do healthcare organizations gain by fostering relationships with actuaries?

Healthcare organizations benefit from fostering relationships with actuaries primarily because actuaries specialize in assessing and managing risks, particularly when it comes to medical costs. Actuaries use mathematical, statistical, and financial theories to evaluate the financial implications of uncertain future events, which is critical in the healthcare industry where costs can vary widely due to numerous factors, including treatment variations, patient demographics, and emerging healthcare technologies.

By collaborating with actuaries, healthcare organizations can develop a more accurate understanding of potential medical cost risks. This understanding allows them to make informed decisions regarding pricing strategies, reserve requirements, and insurance coverage options. Being aware of these risks promotes better financial planning and resource allocation, ultimately leading to improved sustainability and operational efficiency within the organization.

Moreover, while other options like increasing pricing power, reducing staffing needs, and maintaining patient volume are relevant to healthcare management, they don't specifically highlight the primary analytical and risk assessment capabilities that actuaries bring to an organization, which is to evaluate and manage underlying cost risks effectively.