Case Study: Hendrick Medical Center

About the Client

Hendrick Medical Center, a part of Hendrick Health System, is a 500-bed facility located in Abilene, Texas. The faith-based health system has served Abilene and the 19 surrounding counties since 1924. Hendrick has 3,000 employees and has earned numerous accreditations, awards and recognitions, including the Gallup Great Workplace Award, which it has won for 11 consecutive years.

The beauty of the automated VMO is the ability to audit 100% of a hospital’s revenue cycle business-far more than typical hospital resources can. Automating the review process not only frees up valuable manpower for the hospital, but also drastically improves the quality and capability of vendor oversight. With Healthfuse, our ROI is through the roof!”

Tave Kelly, Director of Business Systems
Hendrick Health System


Hendrick had existing partnerships with 15 vendors, but lacked the visibility necessary to evaluate each vendor’s performance. Hendrick believed some vendors were overstating success, but lacked reliable data to validate that suspicion. While the Healthfuse inventory assessment showed that 99.8% of accounts were in balance between the hospital and the vendor, cross-vendor inventory assessments revealed only 38% compliance. Hendrick needed a way to identify the reason for the discrepancies,  x them, and ensure ongoing compliance and maximum collections.


Hendrick engaged Healthfuse to perform inventory reconciliation across all vendors to help ensure accounts were being worked and processed appropriately. Using its AutoRecon application, Healthfuse identi ed several noncompliance issues: multiple vendors were working the same accounts at the same time, some accounts had an agency code but were not actually placed with a vendor, and some vendor reports re ected erroneous results.


With Healthfuse, Hendrick was able to develop a uniform, in-depth reporting cycle to deliver visibility into vendor performance both individually and in aggregate. They also implemented a standardized bi-weekly report card across all vendors.

Cross vendor inventory compliance improvement in the first 5 months
39% > 72%
Return on Investment

To date, Healthfuse has delivered:

Collections Improvements


  • in new initiative

Cost Savings


  • Invoice recoveries