Provider Type: For-Profit Integrated Healthcare Organization with 14 Facilities in 6 States
Business Goal: Improve staff productivity
Operating in an industry with razor-thin margins, executives apply proven techniques used by successful consumer finance enterprises for managing their accounts receivable.
They found that the “80/20 Rule” applies to patient accounts: about 80 percent of their recoveries on patient debt come from 20 percent of the accounts.
With diverse operations and patient populations, they take a disciplined approach to segmenting and scoring their patient accounts receivable using robust valuation technology.
Consequently, they’re able to focus their internal staff and Tier 1 collection agencies on the most valuable 20 percent of patient accounts. The remaining 80 percent of accounts are sold on a recurring basis to C & E.
By not wasting time working on low-value accounts while getting recurring income for them, staff productivity continuously improves.
Provider Type: For-Profit Integrated Healthcare Organization with 14 Facilities in 6 States
Business Goal: Achieve profitable growth through acquisition
A key strategy for this client is to acquire hospital facilities that have been under-performing and struggling to remain independent or financially solvent.
Upon completing an acquisition, our client quickly brings in new management and their operational expertise to get the turnaround under way.
Early in the new management period, our client sells aged patient accounts receivable to clean up the balance sheet and provide an infusion of cash to jump-start forward-thinking initiatives and drive a successful turnaround.
