Outsourced Revenue Cycle Management Solutions for Physicians Help Mercy Hospital Make Huge Gains
Outsourced Revenue Cycle Management Solutions for Physicians Help Mercy Hospital Make Huge Gains
Mercy Hospital is one of Chicago’s first and finest hospitals. Approximately 60%-65% (McKesson uses % marks) of patients served are on Medicaid or Medicare. Since most patients generate primary care visits within a managed care environment, the hospital must track, submit and resolve large numbers of claims across a wide range of diagnostic codes to ensure prompt, accurate payment for the hospital and its physicians.
This process led to an inadequate physician billing system that had been affecting the hospital for almost a decade. Cash collections were insufficient, hospital-physician communication was poor, and physician and patient satisfaction scores were low.
Mercy needed to reverse this trend, but its physician revenue cycle management system was lacking in several areas including cash collections. Cash collections ran behind expectations, which control their practices’ financial position. As a result, doctors were frustrated and unhappy.
To address the problem, Mercy decided to leverage an existing outsourcing partnership with McKesson. This cooperative effort enabled McKesson and Mercy to create ongoing physician educational programs. Each doctor now learns how to handle the charge ticket and completion process. Physicians and office managers gain awareness of McKesson’s rich reporting capabilities. Because the physician, the office manager and the hospital are trained in everything from E/M coding to detailed cash management documentation, all constituents including the patient receive expected levels of service.
McKesson’s Revenue Cycle Outsourcing Services led to a dramatic improvement in revenue cycle management(http://www.mckesson.com/en_us/McKesson.com/For+Healthcare+Providers/Physician+Practices/For+Hospitals/Revenue+Management+Solutions.html) at Mercy Hospital. McKesson’s experience helped Mercy increase charges by 52% and collections by 45%. Additionally, the hospital reduced A/R days by 57% and decreased the percent of accounts receivables greater than 120 days to 5%. However, the most significant benefit is that the reports and the open communications from the combined Mercy-McKesson solution provide the detail needed to deliver continuous improvement, even after seven years of successful implementation.
To learn more about outsourced revenue cycle management services from McKesson(http://sites.mckesson.com/hfma/documents/Mercy_Hospital_RCO_PRT262.pdf), download this complete case study.
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