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“We have a problem with our revenue cycle that we just can’t pinpoint” stated the CEO of a large hospital, part of a multi-hospital system in the South. “Our Net Days in A/R have increased 20 days over the past year – we’re at 80 days now.
Needless to say, Cash on Hand is steadily decreasing. PAS Registration accuracy is at 98%. Our DNFC (Discharges Not Final Coded) are under control, so we are fairly certain the problem lies with billings and collections. We have honed in on those individual departments and we think it’s time to outsource those departments to get things back on track. Don’t you agree?”
There has been an increase of 20 days in Net Days in A/R in one year, particularly for accounts greater than 90 days.
The registration process ensures that insurance is verified at least a day before a scheduled procedure.
Billing Turnaround (days from discharge to bill to payor) is at approximately 12 total days.
Clean claims run at 55% for government payors, non-government payor claims are at 70%.
Should this hospital outsource its billing and collections departments? What advice on managing the revenue cycle would you give the CEO of this hospital to help get the hospital back on track financially?
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