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Client Profile:
A healthcare teaching facility of 484 beds and 6,000 employees.
Accounts Receivable Case Study Challenge:
The hospital billing department had the same leader for several years who was viewed more as a friend than a manager to those who reported to him. As a result, the staff lacked consistency and relied on what they felt was best to complete tasks.
Accounts Receivable (A/R) consistently hovered around 60 days and there did not to be a clear indication as to why this was the case. Physician billing was improving, yet the hospital billing continued to lag behind.
A change in accounts recievables was needed.
Action:
Reports and other documents were analyzed, staff members were shadowed, and a work product review was produced to develop a plan to address a wide variety of improvement areas that focused on people, processes, and technology within the organization.
A root cause analysis was completed for each department regarding its denials. Claim edits were optimized, workflow documents were created for consistency, and individual training plans were implemented for individual staff members.
Productivity and quality expectations were set, extended business office was brought in, and Lean groups were created to quickly address issues brought forth in daily huddles.
Result
Accounts receivable decreased by $24 million per 11 days in just a 6 month period – the lowest number of accounts receivable days in the history of the hospital.
As a direct result of the actions taken, the staff reported a better sense of involvement and a clear understanding of their responsibilities in reaching organizational goals.