Cash flow maintenance is paramount to sustaining any health care provider, especially through this era of rapid policy change and regulation. Organizations attempting to go through transitional phases such as process realignment and systems implementation are especially susceptible to reduced cash flow, both during and following these transitions.
An example of this challenge was a hospital-based home health provider based in New York City that had converted to a market-leading EMR 18 months prior to on-boarding McBee’s assistance. The organization struggled to collect on billed revenue for all payors after the EMR implementation. While there were deep rooted issues with process, system utilization, and biller education, McBee approached the issue by targeting cash flow as the first step in improving the organization’s financial health.
McBee took the strategic approach of performing an impact analysis and targeting traditional Medicare as the area of greatest opportunity. After the first month of the engagement, McBee quickly turned cash collections around; collecting twice as much as the organization could on its own. McBee was able to reduce the provider’s aged accounts receivable over 120 days by 64%, with the remainder residing in unbilled claims awaiting compliant documentation. In total, McBee assisted this home health organization in collecting over $7.8 million in outstanding aged Medicare receivable.
This is just one of many examples of why it is critical to your organization’s financial well-being to get an in-depth understanding of your cash flow through partnering with a consulting firm. The firm will enable your organization to proceed with the transitional phase with financial confidence, smoother process flow, and ultimately, a deeper understanding of your cash flow.