An outstanding AR of $2,926,000, of which $1,179,000 was over 90 days and Gross Days in AR exceeding 117, Muenster Memorial needed help to reduce their AR. Another immediate need was to address Discharged Not Final Billed (DNFB) which had climbed to $735,000 or nearly 29 days of gross revenue.
Muenster Memorial deployed Cash Acceleration complemented by an experienced ResolutionRCM manager to assist in assessing staff, providing training and ResolutionRCM tools left behind for ongoing improvement and success.
Muenster Memorial with processes implemented by ResolutionRCM’s experienced staff and use of proprietary tools reduced their AR over 90 days from $1,179,000 to $474,000, and DNFB decreased from 29 days of gross revenue to 5 days, an 83% reduction. The AR clean-up generated over $700,000 in cash collections while the DNFB reduction accelerated another $300,000 in cash for the hospital, and increase of over $1MM in an 18 bed facility.
Muenster Memorial is an 18 bed, Critical Access Hospital located in Cooke County, Texas. Since 1964, MMH has served Muenster and surrounding communities with the same philosophy; the value of patient care depends on the outcomes achieved and resources used. MMH’s dedication to serve the community with integrity, compassion, public service, efficiency, and support create an atmosphere of trust, and open communication.
The Muenster Hospital District’s staff and Board are driven by a vision to work with the community to provide total healthcare needs as well as to inform and educate to improve the wellness of the community.
Ensuring Community Services
Like many Critical Access healthcare providers today, MMH faced an immediate need to reduce $2,926,000 in Accounts Receivable of which $1,179,000 was over 90 days with Gross Days in AR exceeding 117. Addressing the Discharged Not Final Billed (DNFB) which had climbed to an unacceptable amount, nearly 29 days of gross revenue had become critical. MMH’s Board and leadership determined that to accomplish these goals they needed to improve organizational structure, identify staff deficits and implement a training program to address working procedures and standards while quickly reducing the AR and DNFB. They realized that changes were needed to ensure their continued success in Cooke County.
Balancing Community and Revenue Cycle Integrity
Needing immediate improvement, leadership partnered with ResolutionRCM to assess the situation, provide training and improve processes while augmenting MMH staff to reduce the nearly 3MM in outstanding AR and minimizing bad debt. Providing local staff with additional training kept jobs in the community while increasing employee skills and confidence.
Lynn Heller – Former CEO for MMH said, “Our accounts receivable had grown to a level that was unmanageable by our staff. My options were to hire additional staff or bring in someone who knew what needed to be done, and had the expertise to get it done. The return on investment has been outstanding. A major benefit was to reduce the volume of accounts receivable accounts to a level that is manageable by our staff. Of course, collecting a bucket full of additional payments has been good too!”
A Solid Foundation through Training, Mentoring and Proprietary Tools is Key to Measurable Sustainable Results
MMH leadership worked closely with ResolutionRCM focusing on each item identified to make the necessary improvements. An experienced ResolutionRCM project manager (RPM) was placed on site to assist in training and mentoring the current MMH staff and also took responsibility for managing the additional ResolutionRCM team brought on-site to assist in the critical cash acceleration project. ResolutionRCM immediately began work on implementing improvements, providing the resources, skills, and processes necessary to quickly increase cash performance.
The goal was to reduce accounts receivable as quickly as possible and to provide the guidance and tools necessary for MMH to measure staff productivity and create sustain improvements. ResolutionRCM provided a full scope of services during the cash acceleration:
- Interviewing leadership and staff to determine deficits
- Providing the resources, tools and training to increase staff knowledge, confidence and skills
- Collecting on assigned accounts to quickly decrease aged accounts receivable
- Reducing the DNFB for additional cash
Guaranteed Performance – Peace of Mind
Reduction of MMH’s AR over 90 days from $1,179,000 to $474,000 and DNFB decreased from 29 days of gross revenue to just 5 days, an 83% reduction, generating just over $1,000,000 in cash for the hospital. The improved performance indicators are impressive, but more significant are the process improvements and the knowledge transferred to Muenster Memorial’s business office staff.