Revenue Cycle Management Companies Advise a Data-Centric Approach to Increasing Collection

1. September 6, 2017 Revenue Cycle Management Companies Advise a Data- Centric Approach to Increasing Collection Improving operational efficiency can definitely help reduce a hospital's total costs. But, just as importantly, if not more, it can noticeably improve the quality of care that patients receive, thereby minimizing their need to keep returning to the hospital for more treatments. P a g e 1 | 3

2. To explain how this is possible, revenue cycle management companies turn to some of the most recent studies conducted in several health clinics across America. Mostly, these studies focus on the importance of accessing data in a timely manner. Denied Claims Equate to a Constant Cycle of Missed Reimbursements for Health Providers A recent study, conducted by Change Healthcare, reveals that health providers are missing the opportunity to recover reimbursements for up to 63 percent of denied claims. Accounts receivable at Urgent Care Now, in New Jersey, managed to reach as far as 65 days behind in collections, even with the assistance of some outside medical billing companies. This is because such billing companies failed to pursue all of the insufficiently paid or denied claims. In the end, this led to a missed opportunity for the hospital to recoup any of its investment. As it turns out, the root cause of this problem lies in a lack of transparency in the organization, as well as access to real-time data. According to Urgent Care Now President and CEO John Kulin, it typically takes anywhere from a week to three weeks in order to receive the requested report. When finally in hand, the data on the report is already outdated, so much so that he can no longer determine which areas are problematic. Moreover, medical billing companies also fail to follow up on claims, leading to more missed revenue. In order to address the situation, Kulin decided to make data collection one of his key priorities. He worked on gaining access to real-time claims data for his facility. His hospital also implemented a practice management tool which seamlessly incorporated a medical billing component. This way, he gained a system which addressed and even attempted to correct any claim denial. When recovery goes unaccomplished, the cases are sent back to Urgent Care Now immediately so that the staff can follow up on each case. P a g e 2 | 3

3. Improved Practices Increased Collection by 30 Percent Within three months of implementing the new system, Urgent Care Now managed to achieve a 30 percent increase in its collections. Moreover, the days such cases sat in accounts receivable almost dropped by nearly 18 percent—to 26-27 days. In the end, this allowed Urgent Care Now to keep its doors open. Indeed, there is no need for your hospital to suffer from lack of collection and revenue simply due to missed reimbursement on denied claims. To address the problem, try to remedy the situation yourself by diligently tracking your data and analyzing it. Soon, you will notice a smoother and better funded daily operation at your facility. That said, operations and collections always pose a tough juggling act for administrative officers. You can ease your load by consulting with a healthcare revenue cycle management company that boasts a proven track record of increasing reimbursements through effective collection services. About DECO: At DECO, we understand that maximizing your collection is critical, just as revenue cycle management companies have continuously emphasized. This is exactly why we provide unparalleled revenue reimbursement and medical eligibility management services. We will work one-on-one with your staff in order to significantly improve your revenue and bottom line. Sources: $262B of Total Hospital Charges in 2016 Initially Claim Denials, revcycleintelligence.com Real-Time Data for Denials Management Aids Practice’s Lagging A/R, revcycleintelligence.com P a g e 3 | 3