The Current Environment
Today’s economy is providing some extraordinary challenges for healthcare providers. Not only are hospitals and physicians dealing with a wide range of issues that impact patient care, but they are dealing with broad revenue cycle processes which can tie up cash for capital spending and stall revenue growth.
Effective and successful management of the revenue cycle has never been more important. With a Centralized Business Office (CBO) the combined experience of both the hospital and the physician network will enable reallocation of business office staff to priority projects, streamline workflows, eliminate redundancy, reduce defects and increase cash collections. Many organizations have typically seen an increase of net cash of 3-5% and a reduction in bad debt of 1% within the first year.
Approach to Improvements
KHC’s team of diverse and talented professionals, experienced in revenue cycle redesign, will work with your staff to develop an integrated, effective solution to improve cash collections through reduced denials, reduction in A/R days and write-offs, Lean Six Sigma process and workflow improvements, reduced underpayments, and improved contract management administration—all with complete oversight to help ensure regulatory compliance.
The CBO model can touch almost every facet of your business—from clinical applications to the revenue cycle. We understand the complexity of the revenue cycle and use a team approach to form a detailed planning and collaboration effort with physicians, practice managers, hospital managers, executives and information technology personnel.
We use our expertise to help bridge the gap between registration, billing, collections and accounts receivable functions to address standards in key areas such as staffing, job descriptions, policy and procedures, workflows, training, software systems, charge master reviews, days in A/R by specialty, gross and adjusted (net) collection rates, electronic billing, error rate for claim filing, A/R over 90 days, denial rates, compliance programs, financial assistance, bad debt and other key performance standards.
Revenue cycle management is as complex as it is vital to the success of healthcare providers. A properly integrated CBO can help maximize efficiency and increase cash flow to create financial stability for the long term.