Learn how Firstsource totally revamped Memorial Regional Health hospital’s Revenue Cycle system. Leveraging advanced tech and best practices in RCM resulted in a 30% decrease in accounts receivable days and a 65% increase in cash collected.

1. Memorial Regional Health at Craig
increases cash collected by 65%
Case Study

2. About client
Memorial Regional Health includes a 25-bed hospital, multi-specialty medical clinic and a
rehabilitation center, located in, and focused on, caring for Northwest Colorado.
Like many small, rural hospitals, they were struggling to find and cultivate experienced staff
to deal with denials effectively and efficiently.

3. The challenge
Reactive approach to revenue management triggers denial downward spiral
At US Health Memorial Craig, denial claims were exceedingly high and cash levels were
dangerously low.
Their CEO knew they needed outside help to rein in runaway uncompensated care rates

4. The solution
Create a culture of excellence in revenue cycle billing
Firstsource employed its elite Denials Analytics team and advanced technology to review all
CARC and RARC codes received over a year to quantify and stratify the results.

5. Our Approach
The Firstsource team discovered that 20% of patients overall who declared self-pay actually
had some sort of insurance coverage. Once the audit was complete, they worked with the
CEO and his team to create a training ground for staff to learn best practices for revenue
cycle billing,

6. Key initiatives
A communication network was established between the frontend staff – registrars and
physicians/nursing staff – all the way through to the backend staff – coders and billers – so
that each division understood how they all interact and help to increase total cash on hand.

7. Process Enhancements
50-60 denials were addressed per day to help the staff learn why denials were happening
and renegotiate contracts for better outcomes. We automated payment posting — to reduce
time and preserve resources.

8. The results
Total revamp of the revenue billing lifecycle frees cash
The hospital has experienced a dramatic reduction in cash leakage and days it takes claims to
get paid. But, most importantly, hospital staff are empowered with the latest tech and
processes to manage the entire revenue billing lifecycle.

9. Business impact
65%
increase in cash collected

10. Business impact
30%
decrease in accounts receivable days

11. Business impact
6X
reduction in claims denials

12. Exceeding expectations
“I’ve never worked with a partner who knows the Healthcare business as well as you do and
is so customer service focused, both with us and our patients, The quality of the Firstsource
people and their knowledge was outstanding. They helped us get organized and on track
which ultimately led to outstanding financial results. ”
Andy Daniels - CEO.
“

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Let’s work together to solve it.
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