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Case Study

                                     Community Health Network Decreases
                                     Lost Drug Charges by 40% with
                                     Anesthesia Management Solution
At a Glance                          Indiana’s Community Health           Manager™, improvements began.
Organization                         Network ranks among the nation’s     During patient assessment, a
                                     top 20 integrated healthcare         preoperative nurse completes a
Community Health Network
Indianapolis, Ind.                   networks. Faced with declining       comprehensive checklist with the
                                     revenue, Community Health            patient, entering physical history
– 5 hospitals                        Network sought to boost finances     in the surgery system, which is
– 12 surgery centers                 while building an electronic         integrated with the anesthesia
– 1,442 beds                         medical record.                      management solution.
– 43 OR suites
                                     After implementation of McKesson     McKesson Anesthesia Care populates
– 106,336 surgical visits/year       Anesthesia Care™, McKesson’s         the corresponding ICD-9 codes
Indiana Surgery Center               comprehensive anesthesia             and specifies comorbid conditions
Noblesville, Ind.                    management system, Indiana           requiring a higher level of care. The
– 3,100 surgeries/year               Surgery Center increased comorbid    system also registers ASA modifiers,
                                     documentation, reduced claim         such as BMI and age extremes. The
Solution Spotlight                   rejections and decreased lost        provider can accept or reject these
                                     anesthesia charges by 40%.           codes before sending data to the
– Horizon Surgical Manager™
                                                                          billing system.
– McKesson Anesthesia Care™          Challenge
                                     Indiana Surgery Center’s manual      “ICD-9 codes assigned at bedside
Critical Issues                                                           allow us to assign a diagnosis-related
                                     drug capture process needed
– Lost revenue due to manual         improvement. As drugs were           group (DRG). As the patient’s acuity
  anesthesia drug capture process    dispensed, the anesthesiologist      rises, the DRG assignment changes. By
– Time-consuming anesthesia          noted the dosage on both the         accurately capturing ICD-9 codes, we
  coding process missed comorbid     patient’s record and a separate      gain the maximum reimbursement,”
  conditions                         drug charge sheet for pharmacy.      says Dr. Gregory Bray, medical
                                     The drug was never charged for if    director, chief of anesthesia, Indiana
– Returned patient claims required
  additional documentation for       the second step was omitted.         Surgery Center.
  billing
                                     Before implementing McKesson         Since the anesthesia management
– Lack of drug contraindications
                                     Anesthesia Care, 4% of the           solution is integrated with both
  alerts and awareness
                                     Center’s first claim submittals      nursing preoperative and PACU
                                     were returned due to incomplete      documentation, anesthesiologists
Results                                                                   arrive well-prepared. “I review the
                                     documentation, requiring hours
– Improved patient safety through                                         next patient’s record before leaving
                                     of record validation. While this
  ADE prevention and automated                                            the current bedside, decreasing
  vital sign capture                 figure was lower than the national
                                     average – at 19%, anesthesia         time between cases,” explains Dr.
– Streamlined pre-anesthesia         charges have the highest rejection   Bray. “I no longer repeat the nurse’s
  evaluation process                                                      questions, because I’ve already
                                     rate – Indiana Surgery Center
– Decreased lost anesthesia drug     wanted to eliminate rejected         reviewed the patient’s history.”
  charges by 40%                     claims.
– Increased revenue from greater                                          Anesthesiologists now scan all
  detection of ASA modifiers and     Answers                              medications prior to delivery,
  comorbid conditions                                                     recording the drug type and dosage
                                     After implementing McKesson’s        amount. McKesson Anesthesia Care
– Increased reimbursement through    surgical system, Horizon Surgical
  accurate ICD-9 code capture
Case Study

”Since I left residency, I haven’t   helps caregivers avoid adverse drug                     each account, those losses significantly
                                     events with a qualified cross-reference                 affected our bottom line. Now, we
seen a device that can help          process for dispensed medications,                      know we’re receiving maximum
a provider impact patient            including formulary reference for                       revenue,” says Dr. Bray.
                                     allergies and medications.
safety as much as McKesson                                                                   By establishing an automated record
                                     ”We’re very pleased with the                            for anesthesia, the Center has virtually
Anesthesia Care.”                    real-time, stop-check analysis of                       eliminated claim rejections, leading to
                                     meds,” says Dr. Bray. “Before,                          faster revenue recognition. Previously,
                                     we’d only realize medications were                      4% of all patient claims were returned
Dr. Gregory Bray                     contraindicated after the patient                       due to discrepancies. That figure has
                                     had problems. McKesson Anesthesia                       dropped dramatically: in the first year,
Medical Director, Chief of           Care processes the intricate details                    only two claims were returned.
Anesthesia, Community Health         of multiple drugs interacting
                                     together — giving us a patient safety                   “Our billing agents need less time
Network, Indiana Surgery             feature we didn’t previously have.”                     to process claims, because they
                                     This documentation of medication                        don’t have to touch them multiple
Center                               reconciliation helps Indiana Surgery                    times,” notes Dr. Bray. “The surgeon
                                     Center meet regulatory body                             types the procedure description into
                                     requirements. Drug delivery details                     Horizon Surgical Manager, and that
                                     are sent directly to their clinical                     first-hand account is received by the
                                     documentation and billing services                      billing service. McKesson Anesthesia
                                     department.                                             Care captures actual surgery start and
                                                                                             stop times – everything we need to
                                     With the automatic capture of vital                     withstand an audit.”
                                     signs from physiological monitors,
                                     McKesson Anesthesia Care frees                          With automated coding,
                                     anesthesiologists from recording data                   anesthesiologists can review their
                                     by hand — allowing more time for                        procedure notes and quickly assign
                                     patient care. “Since I left residency, I                CPT codes. By integrating comorbid
                                     haven’t seen a device that can help                     coding into the assessment phase,
                                     a provider impact patient safety as                     McKesson Anesthesia Care increased
                                     much as McKesson Anesthesia Care,”                      the Center’s comorbid documentation
                                     notes Dr. Bray.                                         by 2% over three years.

                                     Results                                                 “I don’t mess with paperwork any
                                     Electronic anesthesia documentation                     more,” says Dr. Bray. “I can focus
                                     and streamlined medication                              on the patient. All I do now is sign
                                     management have greatly improved                        my standing orders.” With Indiana
                                     drug charge capture. Three years                        Surgery Center experiencing such
                                     after implementation, Indiana Surgery                   success, Community Health Network
                                     Center realized a 40% decrease in lost                  looks forward to rolling out the
                                     anesthesia drug charges. “Because                       complete integrated anesthesia
                                     we’re reimbursed a percentage for                       system across the enterprise.

McKesson Provider Technologies
                                     Copyright © 2010 McKesson Corporation and/or one of its subsidiaries. All rights reserved. Horizon Surgical
5995 Windward Parkway
                                     Manager and McKesson Anesthesia Care are trademarks of McKesson Corporation and/or one of its
Alpharetta, GA 30005                 subsidiaries. All other product or company names mentioned may be trademarks, service marks or registered
                                     trademarks of their respective companies. PRT428-08/10


http://www.mckesson.com/surgical

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Community Health Network Decreases Lost Drug Charges by 40% with Anesthesia Management Solution

  • 1. Case Study Community Health Network Decreases Lost Drug Charges by 40% with Anesthesia Management Solution At a Glance Indiana’s Community Health Manager™, improvements began. Organization Network ranks among the nation’s During patient assessment, a top 20 integrated healthcare preoperative nurse completes a Community Health Network Indianapolis, Ind. networks. Faced with declining comprehensive checklist with the revenue, Community Health patient, entering physical history – 5 hospitals Network sought to boost finances in the surgery system, which is – 12 surgery centers while building an electronic integrated with the anesthesia – 1,442 beds medical record. management solution. – 43 OR suites After implementation of McKesson McKesson Anesthesia Care populates – 106,336 surgical visits/year Anesthesia Care™, McKesson’s the corresponding ICD-9 codes Indiana Surgery Center comprehensive anesthesia and specifies comorbid conditions Noblesville, Ind. management system, Indiana requiring a higher level of care. The – 3,100 surgeries/year Surgery Center increased comorbid system also registers ASA modifiers, documentation, reduced claim such as BMI and age extremes. The Solution Spotlight rejections and decreased lost provider can accept or reject these anesthesia charges by 40%. codes before sending data to the – Horizon Surgical Manager™ billing system. – McKesson Anesthesia Care™ Challenge Indiana Surgery Center’s manual “ICD-9 codes assigned at bedside Critical Issues allow us to assign a diagnosis-related drug capture process needed – Lost revenue due to manual improvement. As drugs were group (DRG). As the patient’s acuity anesthesia drug capture process dispensed, the anesthesiologist rises, the DRG assignment changes. By – Time-consuming anesthesia noted the dosage on both the accurately capturing ICD-9 codes, we coding process missed comorbid patient’s record and a separate gain the maximum reimbursement,” conditions drug charge sheet for pharmacy. says Dr. Gregory Bray, medical The drug was never charged for if director, chief of anesthesia, Indiana – Returned patient claims required additional documentation for the second step was omitted. Surgery Center. billing Before implementing McKesson Since the anesthesia management – Lack of drug contraindications Anesthesia Care, 4% of the solution is integrated with both alerts and awareness Center’s first claim submittals nursing preoperative and PACU were returned due to incomplete documentation, anesthesiologists Results arrive well-prepared. “I review the documentation, requiring hours – Improved patient safety through next patient’s record before leaving of record validation. While this ADE prevention and automated the current bedside, decreasing vital sign capture figure was lower than the national average – at 19%, anesthesia time between cases,” explains Dr. – Streamlined pre-anesthesia charges have the highest rejection Bray. “I no longer repeat the nurse’s evaluation process questions, because I’ve already rate – Indiana Surgery Center – Decreased lost anesthesia drug wanted to eliminate rejected reviewed the patient’s history.” charges by 40% claims. – Increased revenue from greater Anesthesiologists now scan all detection of ASA modifiers and Answers medications prior to delivery, comorbid conditions recording the drug type and dosage After implementing McKesson’s amount. McKesson Anesthesia Care – Increased reimbursement through surgical system, Horizon Surgical accurate ICD-9 code capture
  • 2. Case Study ”Since I left residency, I haven’t helps caregivers avoid adverse drug each account, those losses significantly events with a qualified cross-reference affected our bottom line. Now, we seen a device that can help process for dispensed medications, know we’re receiving maximum a provider impact patient including formulary reference for revenue,” says Dr. Bray. allergies and medications. safety as much as McKesson By establishing an automated record ”We’re very pleased with the for anesthesia, the Center has virtually Anesthesia Care.” real-time, stop-check analysis of eliminated claim rejections, leading to meds,” says Dr. Bray. “Before, faster revenue recognition. Previously, we’d only realize medications were 4% of all patient claims were returned Dr. Gregory Bray contraindicated after the patient due to discrepancies. That figure has had problems. McKesson Anesthesia dropped dramatically: in the first year, Medical Director, Chief of Care processes the intricate details only two claims were returned. Anesthesia, Community Health of multiple drugs interacting together — giving us a patient safety “Our billing agents need less time Network, Indiana Surgery feature we didn’t previously have.” to process claims, because they This documentation of medication don’t have to touch them multiple Center reconciliation helps Indiana Surgery times,” notes Dr. Bray. “The surgeon Center meet regulatory body types the procedure description into requirements. Drug delivery details Horizon Surgical Manager, and that are sent directly to their clinical first-hand account is received by the documentation and billing services billing service. McKesson Anesthesia department. Care captures actual surgery start and stop times – everything we need to With the automatic capture of vital withstand an audit.” signs from physiological monitors, McKesson Anesthesia Care frees With automated coding, anesthesiologists from recording data anesthesiologists can review their by hand — allowing more time for procedure notes and quickly assign patient care. “Since I left residency, I CPT codes. By integrating comorbid haven’t seen a device that can help coding into the assessment phase, a provider impact patient safety as McKesson Anesthesia Care increased much as McKesson Anesthesia Care,” the Center’s comorbid documentation notes Dr. Bray. by 2% over three years. Results “I don’t mess with paperwork any Electronic anesthesia documentation more,” says Dr. Bray. “I can focus and streamlined medication on the patient. All I do now is sign management have greatly improved my standing orders.” With Indiana drug charge capture. Three years Surgery Center experiencing such after implementation, Indiana Surgery success, Community Health Network Center realized a 40% decrease in lost looks forward to rolling out the anesthesia drug charges. “Because complete integrated anesthesia we’re reimbursed a percentage for system across the enterprise. McKesson Provider Technologies Copyright © 2010 McKesson Corporation and/or one of its subsidiaries. All rights reserved. Horizon Surgical 5995 Windward Parkway Manager and McKesson Anesthesia Care are trademarks of McKesson Corporation and/or one of its Alpharetta, GA 30005 subsidiaries. All other product or company names mentioned may be trademarks, service marks or registered trademarks of their respective companies. PRT428-08/10 http://www.mckesson.com/surgical