/
1 GET MORE, SPEND LESS 1 GET MORE, SPEND LESS

1 GET MORE, SPEND LESS - PowerPoint Presentation

kittie-lecroy
kittie-lecroy . @kittie-lecroy
Follow
403 views
Uploaded On 2017-11-01

1 GET MORE, SPEND LESS - PPT Presentation

Best Practices for Sourcing amp Managing Revenue Cycle Vendors 2 Operating Expenses Contractual adjustments and discounts Charity amp BD Profit margin needs to be 35 for growth ID: 601578

amp management time contract management amp contract time cost market 000 vendor spent high vendors cycle revenue practices performance level resolve ambiguities

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "1 GET MORE, SPEND LESS" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

1

GET MORE, SPEND LESSBest Practices for Sourcing & Managing Revenue Cycle VendorsSlide2

2

Operating

Expenses

Contractual adjustments

and discounts

Charity

& BD

Profit margin needs to be

3.5

%

for growth

2%Slide3

Agenda

3Key spending and cost to collect trends

C

onventional approaches no

longer

sufficient

8

proven practices for

revenue cycle vendor managementSlide4

A Kodak Moment

4

1996:

4

th

most valued brand

Captured 90% of the market

Employed 140,000 workers

2012: Filed for bankruptcySlide5

Blockbuster Success/Bust

5

2004:

60,000 employees

Market value of $5 billion

9,000 stores worldwide

2010: Filed for bankruptcySlide6

State of the Industry – Third Party Spend

6$30B spent on revenue cycle companies

$100M by 2024

> 35% of budget spent on third-parties; fastest growing segment of spend

Cost to collect surprisingly high

2009

2012

2015

$30B

2024Slide7

Reliance is Increasing Dramatically

7Slide8

Conventional Approaches

8Inconsistent and misleading

Metrics are not yield-based

Varied calculation methodologies

TRADITIONAL

METRICS

WIIFM

Structured for status quo; not incremental

Penny wise and pound foolish

DEAL

STRUCTURES

Decentralized & inconsistent

Often a one-time event; out of sight

Lack of time and tools

VENDOR

MANAGEMENTSlide9

9

Vendor Management Best Practices

Process Audit

Inventory Reconciliation

Invoice Certification

Consolidated Reporting

Contract

Management

Beware of SourceNegotiateActionable

GovernanceSlide10

10

#1 Process Audit

50-60% of accounts not worked appropriately

501r non-compliance

Excessive follow-up – FDCPA violation

Notes not reflective of activity

Accounts off-shored in violation of contractSlide11

11

#2 Inventory Reconciliation

Overdue for bad debt placement/

next

party

Inaccurate patient statements/avoidance of patient complaintsClosure of accounts for Medicare cost reports

Excessive use of account holdsUntimely placement retrievalSlide12

12

#3 Invoice Certification

5-7% of invoices are duplicates

Uncover and resolve contract ambiguities (found insurance,

MCA mom &

baby,

crossovers)

Multiple vendors invoicing for the same payment Fees for non-payment transactionsPayer take-backsSlide13

13

#4 Consolidated Reporting

Time spent making sense of disparate reports

Verifying calculations methodology

Status quo level of performanceSlide14

14

#5 Contract Management

Avoid cost of living increases

U

nmitigated evergreen provisions

Old technology and functionality

Outdated contracts (greater than 3 years)Slide15

15

#6 Beware of Source

Not all vendors are created equal

Great presentation does not equal great execution

Look out for conflicts

Positive and negative referencesSlide16

16

#7 Negotiate

Outdated pricing; as high as 80% more than market rates

Lack of service-level agreements in contracts; scope not defined or no longer relevant 

Ambiguities regarding contingency fees and transaction typesSlide17

17

#8 Actionable Governance

Centralized and consistent management

Quarterly performance reviews and goal setting

Bi-weekly “chalk talks” to review and resolve issuesSlide18

18

Prioritize High Yield Efforts

$$$$$

$$$$

$$Slide19

19

Thank you