How West Tennessee Healthcare Turned Bad Debt into Reclaimed Revenue
The healthcare reimbursement landscape is continuously changing, creating numerous challenges for healthcare organizations as they look to increase revenue. In fact, the revenue risk among not-for-profit and rural healthcare systems are even greater. The National Rural Hospital Association, estimated that 673 rural facilities were at risk of closure, out of over 2,000. West Tennessee Healthcare (West Tennessee), one of the largest, rural, public, not-for-profit healthcare systems in the U.S, acted proactively to combat this trend. In our recent case study, we examine how West Tennessee leveraged analytics to achieve financial success.
West Tennessee has four hospitals, two medical centers and offers 20 primary and specialty care centers. They service a population of 500,000 and with such a large rural patient base, needed guidance to address the following issues:
- 3:1 bad debt to charity ratio
- High percentage of accounts in arrears
- Long lead (30+ days) to denial and appeal process
How West Tennessee Improved its Revenue Cycle with MedeAnalytics
Last week, Bart Teague, executive financial director of patient financial services at West Tennessee Healthcare, connected with Joe Goedert of Health Data Management. In the article, Tennessee health system seeks revenue cycle improvement, Bart shares insight on how the MedeAnalytics partnership has aided the health system in their efforts to improve their revenue cycle. Bart highlights how analytics has allowed them to do the following:
- Analyze 4,000 record reviews
- Find $3.7 million in refunds owed
- Win $900,000 in payment appeals
He also discusses what the organization hopes to gain through the continued partnership. In particular, West Tennessee plans to leverage MedeAnalytics’ solutions to improve revenue cycle workflows and develop a more centralized process as patients move through the system. Analytics will also allow the organization to assess the process of creating HIPAA transactions and ultimately, improve point of service collections.
How Addressing Uncompensated Care and Keeping Patients Happy Can Save Millions of Dollars
With the shift from quantity to quality, healthcare is undergoing a period of rapid change. High-deductible plans continue to rise and the American Medical Association reported that managing healthcare costs are becoming a challenge for patients. Not only are patients paying more, but they often don’t understand their financial obligation after receiving care which contributes to the bad debt hospitals acquire. In 2012 alone, U.S. hospitals provided $45.9 billion in uncompensated care and in 2014, almost six percent of all providers’ gross revenue was written off as bad debt. To address this rising challenge, healthcare organizations need to establish transparency between health systems and patients.
Last week we hosted a webinar to share how our client, McLeod Health, has addressed the challenges of uncompensated care through the use of data analytics. Kelvin Young, corporate director of patient registration at McLeod Health, and Cole Hooper, associate vice president of product management at MedeAnalytics, discussed McLeod’s journey to value through the use of our Patient Access solution which enabled McLeod to achieve the following:
- Increase POS collections and overall reimbursement
- Improve patient satisfaction through clearer collection practices
- Gain visibility into the complete account lifecycle
- Enhance efficiency in patient access and the business office
10 Ways to Stop Revenue Leaks Before They Start
Today’s healthcare financial landscape is complex. Value-based reimbursements, bundled payments, and ICD-10 are changing the revenue lifecycle. As if that weren’t enough, revenue is managed by multiple departments, all of which operate in silos. From patient access to the business office and everything in between, revenue is touched by multiple systems that typically don’t talk to each other.
It’s no wonder healthcare CEOs say they worry most about financial challenges.
Gaining insight into revenue across the enterprise is no easy task. Revenue could be leaking out of the organization and you wouldn’t even know it. The key to identifying those leaks—and stopping them before they start—is having a complete, unified view of your revenue.
Measuring Quality in Patient Access
For years, relatively little attention was paid to patient access. However, with today’s consumer-driven healthcare environment, where the focus on patient satisfaction has become a competitive advantage, ensuring positive outcomes in the patient access department is critical.
The Advisory Board released a survey recently highlighting hospital executives desire to meet consumer expectations and improve patient engagement. In order to develop a successful patient-centric strategy, healthcare organizations need to define and address the challenges in achieving high quality patient access.