Case Study: Nebraska Methodist Hospital

About the Client

Nebraska Methodist Hospital founded in 1891, and a part of theMethodist Health Systems has been serving the people of Omaha and Western Iowa for more than 35 years. A non-profit, 430-bed acute care hospital with more than 2,000 full-time employees and400+ physicians, Methodist Hospital has a tradition of providing quality health care to the region in cardiovascular surgery, neurosurgery, women’s services, cancer care, gastroenterology, orthopedics, and comprehensive diagnostic services.

The increased transparency Healthfuse was able to deliver helped not only us but our long-standing vendor as well. We appreciate the collaborative process. Together, we’ve been able to significantly improve self-pay collections and reduce bad-debt in a relatively short amount of time.

Michaela Thomsen, Director of Patient Financial Services
Nebraska Methodist Health System

Challenge

Nebraska Methodist Hospital used the same early-out vendor for many years. Even with the valued and trusted relationship, the health system experienced increasing complaints from patients who were unsure as to why they were being sent to bad debt. They also discovered that there was an influx in bad debt collections, specifically within the first three weeks after agency placement, driving up the cost to collect. Michaela Thomsen, Director of Patient Financial Services at Nebraska MethodistHealth System, needed a way to analyze the vendor’s processes to identify areas for improvement.

Solution

Nebraska Methodist Hospital chose Healthfuse to perform a process audit and to help improve transparency between the health system and the vendor. The proprietary automated rules-based auditing tool, AutoAudit—runs throughout a client’s system, scrubbing activity files produced by the vendor, or dialer files if for early out, bad debt, or patient financing. AutoAudit identifies and flags potential issues on an account, and then segments those issues based on the various rules violated. Healthfuse analysts then work with vendors, participating in call audio auditing to ensure customer service best practices are being met and providing remediation and improvement counseling, assisting Nebraska Methodist and their vendors in fixing process and programming issues.

Results

Healthfuse, Nebraska Methodist, and the vendors worked collaboratively to address gaps in procedures and to implement improvements across all collection and bad debt processes. The vendor appreciated the opportunity to work through the issues and was quick to make changes, which helped bring greater value and accountability to the relationship.

To date, Healthfuse has delivered:

Collections Improvements

45%

  • improvement in outsourcers productivity

$131K

  • n invoicing errors recovered to-date

Cost Savings

$16.5M

  • in incremental cash factor improvement due to increased vendor liquidation

$786K

  • in cost-savings