case for outsourcing sales presentation
DESCRIPTION
TRANSCRIPT
1© 2007; MedHQ all rights reserved.
Outsourced Services
The Case for Outsourcing
2© 2007; MedHQ all rights reserved.
Challenges for Healthcare Providers
Administrative Headaches - Inefficiencies
• Timely and Accurate Financial Information
• Efficient / Effective People Administration
• State and Federal Regulation Knowledge
• The Ability to Attract and Keep the Best People – Employee Turnover
• Keeping Up with Changing Technology
• Long Term Cost Containment
• Cash Leaks and Drains
• Executive Level Business Council
3© 2007; MedHQ all rights reserved.
Typical Back Office Responsibilities & Functions
Human Resources
• Employment Law
• Health and Welfare
• Staff Attraction & Retention
• Payroll & Compensation
• Workers’ Comp
• Values Based Culture Development
Revenue Cycle Functions
• Accounting &Accounts Payable
• Cash Management General Ledger
• Budgeting-Capital and Operating
• Credentials Verification
• Business Consulting and Management Expertise
Administrative
• Management of Employee Information
• Claims Administration
• Recruiting & Staffing
• HRIS Web Portal
• State and Federal Regulations
• Information and Technology Support
• HR Legal Expertise
4© 2007; MedHQ all rights reserved.
Are you a vendor manager?
HIPAA &
Patient Safety
Business
Consultant
Credentialing
Expertise
Technology
Support
Staff &
Recruiting Service 3rd Party
& COBRA Administration
Employer
Legal Council
Accountant
Tax Preparer
Payroll Service
Provider
Employee Benefit
Insurances
401K
Workers
Compensation
& Liability Insurances
Outside
Human Resource
Expertise
You &
Your
Facility
Provide the best quality
health care?
Community outreach?
Patient care?
Growth of business?
Culture development?
Nurture alliances and partnerships? Profitability?
Competitive advancements? Market changes?
Keeping good employees?
5© 2007; MedHQ all rights reserved.
Why Outsourcing makes sense
Source: “The Black Book of Outsourcing” by Brown and Wilson
• Outsourcing brings greater efficiencies without
having to invest in added people and technology – saving
time and money-leading to better service levels
• Outsourcing enhances profitability; leading to increases in shareholder
value; be an employer of choice; gain a competitive advantage
• Outsourcing provides instant access to expertise; reduces
business mistakes and reduces risk
• Outsourcing frees up time to focus on core competencies
maximizing revenues
• Reduce Cost • Reduce Risk • Maximize Performance
6© 2007; MedHQ all rights reserved.
Employment Law Regulation
From the early 1900’s to current - new laws and regulations create business
challenges
7© 2007; MedHQ all rights reserved.
Average Award Amounts for Non-compliance
• Wrongful Termination $219,000• Race Discrimination $147,000• Gender Discrimination $106,000• Disability $100,300• Pregnancy $ 87,000
• Sexual Harassment $ 37,500
Employment Law Regulation
Protect yourself from potential lost profits
8© 2007; MedHQ all rights reserved.
0 200 400 600 800 1,000 1,200 1,400 1,600 1,800
<250
250-499
500-999
1000-2499
>2500
No. o
f Em
ploy
ees i
n Co
mpa
ny
HR Expenditures per employee
MedHQ can help contain the rising costs associated with being an employer.
Human Resources Expenditure per Employee
9© 2007; MedHQ all rights reserved.
Employee Turnover Costs
Source Turnover cost, Documentation - Supporting material $8/hr. employee
American Management 30% of Annual Salary
Association $4,000.00 - The cost of hiring and training a new employee can vary from 25 percent
$4,800.00 to 200 percent of annual compensation. Costs include customer service disruption, emotional costs, loss of morale, burnout/absenteeism among remaining employees, loss of experience, continuity, and “ corporate memory.”
Hay Group study $8,000.00 The cost of replacing workers range from six months of an hourly workers
to 18 months salary of a professional employee.
Saratoga's Human Resource $16,000.00 Average turnover cost equals one year's salary and benefits. This can vary Financial Report widely depending on industry.
Workforce Magazine $10,000.00 45% of responding companies indicated that turnover costs are more than
$10,000 per employee
Compilation of turnover cost studiesSasha Corporation, Since 1984 HR Consulting & Development
10© 2007; MedHQ all rights reserved.
• Build High Performance, Customer Service Teams, Improve employee retention and morale while eliminating non-productive administration in order to re-focus on bottom line activities
• Health Care Economies of Scale
Benefits Value and cost stability in order to create operating leverage
• Shared risk
Risk management control in order to reduce employer liabilities and vulnerabilities.
Outsourcing Value Add
11© 2007; MedHQ all rights reserved.
Typical Business Office Functions
Human Resources
• Employment Law
• Health and Welfare
• Staff Attraction & Retention
• Payroll & Compensation
• Workers’ Comp
• Values Based Culture Development
Revenue Cycle Functions
• Accounting &Accounts Payable
• Cash Management General Ledger
• Budgeting-Capital and Operating
• Credentials Verification
• Business Consulting and Management Expertise
Administrative
• Management of Employee Information
• Claims Administration
• Recruiting & Staffing
• HRIS Web Portal
• State and Federal Regulations
• Information and Technology Support
• HR Legal Expertise
12© 2007; MedHQ all rights reserved.
Time and Focus on Your Facility
You & Your Facility
Growth
Profitability
Company Culture
Patient Care
Increased Revenues
Build Alliances & Partnerships
Community Outreach
State-of-the-Art Healthcare Services
Facility of Choice
13© 2007; MedHQ all rights reserved.
Time + Money + Focus = Total Bottom Line Costs
401K Provider
Recruiting Services
HR Legal Council
Added Admin Overhead______ ______
____________
______
______
Payroll Service
TPA Costs/Annual Renewals
Supervisor Training
______ Core Time Lost
Total Annual Payroll _______
Current MedHQ
Total Annual Payroll $ _______
____________
IT Support
Employee Turnover Cost______Compliance & Safety
______
$
$ ______ _ $ ________
MedHQ’s
Platform of
Services
People
Expertise
Technology $_______
14© 2007; MedHQ all rights reserved.
• Specialized; Focused Solely on Healthcare Market
• Started serving Ambulatory Surgery Centers- October 2, 2002
• Skilled Healthcare Administrative Staff CPA’s, Human Resource Professionals, Payroll
Specialists, Healthcare Executive Management and Consultants, Credentialing Specialists, Technology Expertise
• The Provider of Choice for Nationwide Healthcare Business
Why MedHQ ?
15© 2007; MedHQ all rights reserved.
“We have been working with MedHQ for five years. The medical benefits provided through MedHQ are best of class, have kept us competitive in the market and has helped our ASC partners attract and keep great employees. This could not have been accomplished on our own. There are so many back office functions to attend to in running an ASC. MedHQ has provided our ASC partners accounting solutions that are timely and accurate. We trust our MedHQ team and know that our bottom line has been impacted by utilizing the accounting resources provided by MedHQ”
Thomas Mallon, Chief Executive Officer, Regent Surgical Health
“On a monthly basis, our Accounting Specialist and I have constant communication about the budget, taxes, billing, revenues, expenses, and Blue Cross. There is no one single event that stands out; rather, accounting specialist is a steady, reliable resource to me for concerns and questions that we have in these areas. When I have been pressed for time in preparing for my board meetings, he will do his utmost to speed things along so that I can have the monthly financials as quickly as possible.”
Thomas Holecek, Administrator, Palos SurgiCenter Palos, IL
Why MedHQ?
16© 2007; MedHQ all rights reserved.
With MedHQ it does not have to be a challenge anymore…
MedHQ specializes in providing Accounting Expertise, Payroll Management - Time & Attendance Solutions, Human Resources, Employee Benefit Management, IT Solutions, Credentialing and Consulting exclusively to Healthcare Business
MedHQ The Experts for Healthcare Back Office Operations
17© 2007; MedHQ all rights reserved.
1. Assess Business Fit
2. HR Audit Process
Assess Needs
4. Approve Proposal Concept
3. Select and Execute Strategies
Is MedHQ the solution for you?
18© 2007; MedHQ all rights reserved.
Robin LacineExecutive Director of Business Development
MedHQ4 Westbrook Corporate Center, #440
Westchester, IL 60154(708) 492-0519 office
(708) 492-0547 faxwww.medhq.net
Robin LacineExecutive Director of Business Development
MedHQ4 Westbrook Corporate Center, #440
Westchester, IL 60154(708) 492-0519 office
(708) 492-0547 faxwww.medhq.net