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PARTNERING

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PARTNERING Powered By Docstoc
					Improving Cash Flow and
Compliance Through the
Assistance of External Partners

         Michael Bernstein
     Senior Vice President/CFO
Table of Contents
   Reasons for Partnering
   Expected Outcomes
   Evaluation Process
   Performance Indicators
   Actual VMC Performance
   Common Myths
    Reasons For Partnering
   Staffing Issues – Shortages and Qualifications
   Enhance Staff Training and Education
   Increase Cash Flow/Capital Needs
   Enhance Compliance and Regulatory Standards
   Reduce Operating Costs
   Billing and Coding Complexities
   Streamline Revenue Cycle Processes
   Improved Patient Satisfaction
   Improved A/R = Improved Operating Income
Expected Outcomes
   Sustainable Results
   Access to Professional Qualified Staff
   Increased Cash
   Reduction in A/R Days
   Avoid Losses From Aging Receivables
   Reduction in Bad Debts
   Reduce Operating Cost
   Access to Enhanced Technology
   Improved Customer Satisfaction
Evaluation Process
   Study What a Partnership Means to
    Your Organization
   Ask Yourself – Is Your Current Process
    Achieving Your Goals?
   Understand Your Data
   Communicate, Communicate,
    Communicate, Etc! – With Senior and
    Middle Management and Board
Evaluation - Continued
   Identify Potential Partners
   Prepare an RFI (Request for Information)
   Oh Yeah! Did I Mention Communicate?
   Conduct Due Diligence
       Site Visits – Partner and Clients
       Reference Checks
Evaluation - Continued
   Don’t Expect What You’re Not Willing to
    Inspect
   Don’t Rush the Process
   Partner Culture Fit
   Don’t Be Afraid to Succeed
   Oh Yeah! Did I Mention Communicate?
Performance Indicators
   Cash Collections
   DNFB
   % A/R Over 90 Days
   Patient Satisfaction
   Compliance
   There Is No Limit As To What You Should Ask
    For
   Weight Them As You Deem Appropriate to
    Achieve Your Goals
   Incentives As Well As Penalties
Common Myths
   You Lose Control
   You’re Admitting to Failing
   The Most Important Factor Is Selecting The
    Lowest Priced Partner
   Only a Few Need to Make the Decision
   You Can Expect a Seamless Transition
   Specific Performance Standards Are Not
    Needed
   Termination Is An Easy Process
   The Hospital Is Indemnified Against Claims
Actual VMC Performance
First 10 Months (June, 2007-March, 2008)
                                                         Pre   Post
   Collection Percentage of
     Net Collectible Patient Revenue                     96%   104.7%
   Days Outstanding in A/R                              52     44
   A/R % Over 90 Days                                   20%    14.5%
   DNFB Days                                            10      7.2
   Cost of Collections                                  2.5% 3.4%/2.4%*

   This Equals An Additional $17.7 Million Over Our Historical
     Collection Rate
   As These Indicators Improve, Your Contractual Allowances
     and Bad Debts Will Decrease Over Time
* Excludes 1st year implementation and incentive costs
Questions?

				
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