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Revenue Cycle SolutionsPayment Integrity Compass
Don’t Let Revenue Leaks
Drain Your Margins
Payers are tightening reimbursement and passing on the pain of reform to providers, via tougher negotiations and complex contract terms, increased denials, and even underpaying signed contracts. We call this revenue leakage.
The slow loss of contract value seems insignificant at first, but adds up to a major drain on margins. In fact, the average facility loses 5% of its annual revenue to preventable revenue leakage. But best-practice institutions are making million-dollar gains by optimizing contract negotiations, overcoming denials, and recovering underpayments.
© 2013 The Advisory Board Company • advisory.com • 26714
Learn more about reducing revenue leaks and expanding your margins
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Overcoming Denials Recovering Underpayments
Case Study: Key Medical Center*
Key is a 650-bed hospital in the Northeast that experienced lost revenue due to a siloed system, reporting challenges, and poor workflow.
Case Study: Wells Hospital*
Wells is a 300-bed hospital in the Midwest that was unable to quantify an anecdotal underpayment problem.
Results
RECOVERED IN THE FIRST EIGHT MONTHS OF USE
DENIED ACCOUNTS OVERTURNED
$4.1M 324
Actions
Tracking and reporting of all denials in a single comprehensive system
Custom denials report
Auto-generated, prioritized worklists
Actions
Display of true gap between expected and actual payment
Identification of all payment defects and elimination of false positives
Bulk appeals capability to recover high-volume, low-dollar variances
Results
Underpayment Recoveries
RECOVERED YEARLY
$1M+
$1.1MYEAR ONE
$1.8MYEAR FOUR
$1.8MYEAR THREE
$1.5MYEAR TWO
Case Study: Rogers Health*
Rogers is a two-hospital, 800-bed system in the Southwest. Unbeknownst to it, provisions in commercial payer contracts prevented fair reimbursement in outpatient cases.
Optimizing Contract Negotiations
Results
Net Revenue, Large Commercial Payer
INCREASE7.4%$35.0MBEFORE
$37.6MAFTER
Actions
Data-informed negotiation prep
Real-time impact modeling of proposed terms
One-click charge adjustment
* Pseudonymed institution.