HRG / Quorum Client Case Study, Memorial Hospital of Carbon County/ Rawlins, WY
Memorial Hospital of Carbon County (MHCC) is a 25-bed critical care facility located in south central Wyoming. MHCC is dedicated to providing quality healthcare to Carbon County residents and visitors. Their services include:
- A trauma-rated emergency department
- Radiology and laboratory services available 24 hours a day
- Surgical services
- Seven clinics
MHCC’s mission is to become the most exceptional healthcare facility in the country.
In 2012 MHCC was on Quorum’s watch list as an under-performing hospital. MHCC reached out to Healthcare Resource Group (HRG) to explore alternatives to address weaknesses in several key segments of their revenue cycle. As a community hospital MHCC had reservations about “outsourcing” their accounts to a vendor – what would the community think of such a step, what would their patients think? After speaking with David Yackell Quorum’s Associate Vice President – Finance Practice and Greg West, HRG’s Chief Operating Officer, MHCC agreed to partner with HRG for a “clean-up” project of aged account receivables.
MHCC had a great team in place, but to assist in identifying and assessing internal organizational weaknesses HRG placed an interim business manager on-site. This was done in order to more readily assess improvement needs and also to work directly with MHCC and establish a partnership relationship where both MHCC and HRG were mutually working toward the facility’s success. Communication was key and MHCC and HRG strove to over-communicate, a technique that established trust, instilled confidence, and allowed for success.
Not long after the clean-up project began, MHCC recognized the need to take additional steps to improve the performance of their patient access, medical records, and business office departments. HRG and MHCC decided to expand the scope of their partnership from a clean-up project to a rehab and return project; a complete revamping of the entire revenue cycle. MHCC and HRG worked together over the course of a year during this phase of the project and engaged in thorough discovery and cleanup efforts in order to position MHCC with the proper structure to achieve the revenue cycle results they needed.
HRG’s on-site consultant worked with Ned Hill and Dave Pike, MHCC’s Chief Executive Officer and Chief Financial Officer, along with their team and focused on revising and updating the policies and procedures for patient access to substantially reduce errors occurring at the front-end. An additional on-site Health Information Management (HIM) consultant assumed management of the HIM department. The on-site consultants worked in unison with MHCC to revise and implement industry best practice policies and procedures. HRG also provided backlog coding support on an as needed basis to keep DNFB at an acceptable level. HRG’s HIM consultant successfully mentored the new department manager until he was ready to assume full control.
HRG performed a complete review and revision of the CDM. This was complimented with a review and update of department fee slips and charge protocols, yielding an improvement in charges and revenue.
With so much to focus on, MHCC asked HRG to assume the responsibility for performing all billing and collections functions remotely from their OutPartnering™ Center (OPC) in Spokane Valley, Washington. This included early out processing of all self-pay accounts. HRG implemented a patient portal to accept and process credit cards and direct bank transfers and office hours were extended to include evenings and Saturdays to support the needs of MHCC’s patients.
In January 2013 MHCC and HRG modified their rehab and return project into a Complete Business Office (CBO) project whereby HRG provided on and off-site Patient Financial Services (PFS), HIM, and Registration Directors while the accounts receivable was managed and worked remotely at HRG’s OutPartnering™ Center in Spokane Valley, Washington. In April 2013, HRG added coding support services to their agreement with MHCC. It was during this phase of the partnership that results escalated and MHCC’s revenue cycle performed with greater success. Today, HRG and MHCC continue to work in partnership and together with Quorum Health Resources. This strong team has yielded financial rewards and results for MHCC.
Within the first year the following results had been realized:
- A reduction of MHCC’s Gross AR by over $5.3 million dollars
- Improved cash collections by $500,000 per month
- Lowered the Days in AR by 46 days
- Improved the clean claim rate by over 14%
- Reduction in the Days over 90 to less than 20%
- Improvement to number three on Quorum’s list of performing hospitals