FLEX FCFIC Workshop #3

1. FLEXFCFIC Workshop #3 Data Measures and Reporting: Addressing the indicators and how we should be gauging Financial performance Florida State Office of Rural Health

2. Accurate Documentation and Coding Managing Cost to Charges – Changes in cost or revenue means payback! Strong Revenue Cycle Team A/R Management including strong policy for bad debt, self pay, uninsured, ICTF

3. - Cost to Charge Ratio Management • Monthly Compliance review • Cash reserve mgmt – paybacks! • Understand Payback policy • Medicaid local • Medicare ERP – up to 60 months • Board education

4. - Charge Master Management Ongoing – not a one time deal Compliance TRAIN your dept heads

5. 2) Manage to Salaries / Benefits/Wages Benchmarks • Bring HR Director to the Table • HR Staff/Hours Reduction/Considerations • Employed Physicians and mid levels • Employee Contracts and Compliance • Pulse of Productivity

6. 3) Manage to Materials/Supplies 10-12% Benchmarks • Healthtrust Analysis in 35 hospitals • 18% to 33% savings on current spend • Drives transition from Materials Mgmt to Supply Chain Mgmt • No Fee to participate • Receive same contract pricing as 1000 bed HCA hospitals – no level buying required for discounts.

7. 4) Manage to Revenue Cycle Benchmarks – Set Goals -Measure Performance • Days in A/R – 40-45 • GOAL – Reduce A/R days by10%=5 days • % Bad Debt of Net Collections – 8.5% • Denials– Less than 2% of Net • Net to Gross Collections – 58-60% • Up Front Collections – $20 avg per registration • Quality / Clean claims- 96%

8. 5) DATA MINING – IS THE KEY TO SUCCESS! • Identify patterns and trends • Identify Root cause • Identify Subsequent process improvement • Identify Managed care contracts deficiencies and shortfalls • BIG DATA – demands digital management

9. 6) Know your payer mix! MEDICARE – YOUR #1 Payer • CASH FLOW MGMT • HOW MANY PAYERS – FFS – MA • CHANGES AHEAD – DALE GIBSON • PAYMENT BUNDLING • DRG PAYMENTS VS PER DIEM?? • Payment Bundled

10. You could realize a $1,000,000 Revenue Cycle Improvement to your bottom line

11. Thank you for participating in today’s webinar. Susannah Cowart Director, Florida Division HomeTown Health, LLC 229-881-4445 sgkc76@gmail.com Kathy Whitmire Managing Director HomeTown Health, LLC 706-491-3493 kfw@windstream.net