Building a Best Practice Hospital Revenue Cycle
The unemployment and poverty rates in Randolph County, North Carolina, exceed both state and national levels, contributing to an unusually large number of uninsured patients in Randolph Hospital’s service area. Additionally, the hospital was challenged with declining volumes and numerous internal system/process issues that caused inconsistent cash flow and a significant backlog in accounts receivable. These factors contributed to operating losses, creating a burning platform for change.
Pinnacle performed a detailed assessment of the revenue cycle and identified significant opportunities to improve financial and operational performance. Pinnacle was subsequently engaged to design and implement solutions in high priority areas, and due to the positive results, the project was extended to address other areas of opportunity.
Key activities included:
Common themes across all initiatives included:
- Developing strategies and tactical plans for prioritized execution to drive the quickest return on investment
- Fully leveraging and optimizing existing information system capabilities
- Investing significant effort in leadership and staff development by providing training, coaching and mentoring
- Implementing an infrastructure, which included key metric reporting, work flows, management tools, job aids and policies, to ensure ongoing sustainability
Over the course of the engagement, Randolph Hospital achieved improvements in many key metrics, most notably:
- A 35 day reduction in accounts receivable
- $7 million of annual recurring net revenue improvement, resulting in an 8 percent improvement to the bottom line
Additionally, numerous qualitative improvements, including improved staff morale and a new culture of accountability, were achieved.