HFMA PowerPoint Presentation

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CASE STUDY 2008Benchmarking Collections
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Presented by
Janice Ridling Baptist Health System, Inc. Vice
President of Revenue Management Janice Ridling,
CHFP, MPA, is VP of Revenue Management for BHS
in., Birmingham, AL. One of the largest
healthcare systems in The state of Alabama,
Baptist Health System includes four core acute
care hospitals, and nine senior housing
facilities across the central And northern
portion the state. Janice has significant
experience in health care finance, formally
serving Tenet Health System as Vice President of
Patient Financial Services, Western Division.
Janice earned a Bachelor degree in Health Care
Administration from Florida Atlantic University
and a Masters in Public Administration from
University of Alabama, Birmingham. Pollyanna
M. Brannan Brannan Consulting, LLC President Poll
yanna Brannan is the owner of Brannan Consulting,
LLC, providing Partnership Management services to
the healthcare industry. Pollyanna has 17 years
experience in managing Customer Service and over
12 years experience in healthcare receivables
management. She has a wide level of experience,
from Client Service and Collection Sales
management, assisted in the development of an
Outsource Billing Company and prior owner of a
Collection Agency. Currently, Pollyanna assists
hospitals with the selection and management
of their Collection Vendor Partners. She
effectively optimizes performance of these
Partnerships at all levels of collections.
Pollyanna earned a Bachelor degree in Business
from Auburn University with a minor in Public
Relations.
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AGENDA

• BHS Vendor Organization and Operations
• Why
• How
• Outcome/Results

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BHS Vendor Organization and Operations

• 15 Vendor Management Staff Members
• 5 BHS and 10 Vendor On-sites
• BHS Vendor staff responsibilities
• Reconciliation of Placements
• Review and adjust invoices as needed
• Work with Vendor On-Sites
• Weekly Calls with BHS staff and Vendors
• Quarterly reviews BHS Leadership, vendor
  management FTE , IT and Partner
• Discussion and resolution of issues.

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WHY?

• No reliable benchmarks (Eligibility, EBO, BD,
  WComp, Liability)
• Resource limitations at BHS
• Monitor vendor performance
• Expertise in the RFP process
• Limited knowledge and expertise on how agencies
  work and what motivates them
• Changes in reimbursement - cash flow
• Expertise and time to do in-depth agency audits
• Challenge the status quo related to benchmarks
  and reporting
• i.e. definition of approvals in the Eligibility
  realm
• Performance transparency

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HOW?

• Contract for support-Outsource this process for
  expertise and resources

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Created by Brannan Consulting, LLC 2008
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HOW?

• We chose Brannan Consulting (BC) due
  to known experience from prior projects
• 1st Key to Success True Comparisons by
  making Apple to Apple a reality
• Example BCs evaluation recognized reports not
  reflecting what agency Rep. presented due to an
  IT change made unknown to Rep. Honest mistake
  but critical!
• 2nd Key Establish long term partnerships with
  vendors vs. short term
• Example BHS to give 90 day notice to vendor-let
  BC try to salvage the partnership by assisting
  agency in improving recovery and customer service
  to patients and to BHS staff-BC referred to this
  as bridging the gap b/w hospital and collection
  vendor partners
• Result
• Improved service and recovery significantly
  within 90 days
• Saved BHS time and money by not having to replace
  agency
• Win-Win for BHS and vendor

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Sample Standardized Report Format
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Created by Brannan Consulting, LLC 2008
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HOW?

• Contract for support-Outsource this process for
  expertise and resources
• Standardized reporting format
• Key Making True Comparisons Apple to Apple
• Example Client codes included After-Insur SP in
  SP
• Example 90-notice to Partner
• Standardized definitions ( i.e. close and
  return/approval)

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Sample Report Guidelines
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Created by Brannan Consulting, LLC 2008
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HOW?

• Contract for support-Outsource this process for
  expertise and resources
• Standardized reporting format
• Key Making True Comparisons Apple to Apple
• Example Client codes included After-Insur SP in
  SP
• Example 90-notice to Partner
• Standardized definitions ( i.e. close and
  return/approval)
• Establish mutually agreed upon goals
• KEY BASE GOALS ON VALID BENCHMARKS WITHIN OUR
  STATE AND REGION

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Benchmarks Established at a State Level

FOR ALL
LEVELS OF COLLECTIONS
Information has been changed from the actual
dollar amounts and percentages .
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Created by Brannan Consulting, LLC 2008
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HOW?

• Contract for support-Outsource this process for
  expertise and resources
• Standardized reporting format
• Key Making True Comparisons Apple to Apple
• Example Client codes included After-Insur SP in
  SP
• Example 90-notice to Partner
• Standardized definitions ( i.e. close and
  return/approval)
• Establish mutually agreed upon goals
• Utilize Monthly reports to produce Dashboard

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HOW?

• Contract for support-Outsource this process for
  expertise and resources
• Standardized reporting format
• Key Making True Comparisons Apple to Apple
• Example Client codes included After-Insur SP in
  SP
• Example 90-notice to Partner
• Standardized definitions ( i.e. close and
  return/approval)
• Establish mutually agreed upon goals
• Utilize Monthly reports to produce Dashboard
• Projections
• KEY TO SUCCESS VENDORS PROVIDE STRATEGIC PLANS
  BY COLLECTION MANAGERS IF ACTUAL RECOVERY IS LESS
  THAN GOALS
• REQUIRED MONTHLY TO IMPACT RECOVERY TIMELY

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Outcome / Results

• Credible Benchmarks
• Verified data and only used truly comparable data
  for analysis

• i.e. Did bad debt recoveries include ER?
• i.e. Did EBO self pay include both straight and
  AI?

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Benchmarks in the Market- ?Expensive Yes! ?
Reliable Do they meet our needs ??
2007 Top Collection Markets Benchmarks -
Electronic PDF File Members 225.00
Non-Members 575.00 2007 Top Collection
Markets Survey Print Version Members 325.00
Non-Members 685.00 2008 Agency Benchmarking
Survey Members 325.00 Non-Members 685.00
2008 Agency Benchmarking Survey Printable PDF
File Members 225.00 Non-Members 575.00
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Outcome / Results

• Credible Benchmarks
• Verified accuracy
• i.e. Did bad debt recoveries include ER?
• i.e. Did EBO self pay include both straight and
  AI?
• Useful Benchmarks

• DRILL DOWN TO YOUR STATE AND REGION
• i.e. BHS ? Alabama Hospitals and Southeast Region
• Utilize Recent Data-most recent 12 months
• Narrow down to the specifics pertaining to
  individual facility
• Whats important to you?

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Example of a Useful Benchmark For BHS WComp
Placed with Agency within 30 days or less
Information has been changed from the actual
dollar amounts and percentages .
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Insurance Benchmarks Reflective of BHS
Performance ?Are we truly collecting enough
upfront? ?How do we compare to other hospitals
in our state?

• of Collections Paid by Insurance After
  Placement With Bad Debt Agency

of Total Listed Total Listed 400K 10K Paid
by Insurance
of Total Collected 100K Total
Collected 10K Paid by Insurance
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A Partners Perspective by

• Tim Sullivan MBA CPAM
• Cardon Healthcare Network
• Tim Sullivan has been employed since 1998 by
  Cardon Healthcare Network
• which serves as a primary eligibility partner of
  BHS. Tim has 20 years
• experience in Revenue Cycle Management.

When Brannan Consulting is involved, you can
count on it being a level playing field based on
facts!    BC sifts through the BS and gets to
the bottom of it to get to the facts!
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Outcome / Results

• Credible Benchmarks
• Useful Benchmarks
• Realistic Goals Established
• Expectations Set

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Outcome / Results

• Credible Benchmarks
• Useful Benchmarks
• Realistic Goals Established
• Expectations Set

• Timely Development of Strategic Plans
• Hold agencies accountable for performance

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Sample Partner Monthly Projections
?Strategic Plan
Information has been changed from the actual
dollar amounts and percentages provided by
Partners.
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Outcome / Results

• Credible Benchmarks
• Useful Benchmarks
• Realistic Goals Established-Expectations
• Timely Development of Strategic Plans
• Improvement in Communications-Bridging the Gap
• Positive Approach

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Outcome / Results

• Credible Benchmarks
• Useful Benchmarks
• Realistic Goals Established-Expectations
• Timely Development of Strategic Plans
• Improvement in Communications-Bridging the Gap
• Positive Approach

• Confidence in the Partners Maximizing
  Performance
• Build Long-Term Partnerships ? Everyone Wins!

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Outcome / Results

• Credible Benchmarks
• Useful Benchmarks
• Realistic Goals Established-Expectations
• Timely Development of Strategic Plans
• Improvement in Communications-Bridging the Gap
• Confidence in the Partners Maximizing Performance
• Build Long-Term Partnerships ? Everyone Wins!

THE KEY RESULT OF BENCHMARKING COLLECTIONS
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Outcome / Results
Increased Cash!
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HOW CAN YOU PARTICIPATE IN THE BENCHMARK
DATABASE FOR YOUR STATE AND REGION?
Access http//www.BrannanConsultingLLC.com/
Benchmarking for Guidelines
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"The most accurate benchmarks in the industry!"  
Tim Sullivan MBA CPAMCardon Healthcare Network

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Contact Information for Questions..
Janice Ridling Baptist Health System,
Inc. Janice.Ridling_at_bhsala.com 205.599.4205
.. Pollyanna M. Brannan Brannan Consulting,
LLC pbrannan_at_brannanconsult.com 334.221.2211
.. Tim Sullivan MBA CPAM Cardon Healthcare
Network tsullivan_at_cardonhealthcare.com (801)
243-5744
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Questions..
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