Case study from Convergent on Sparrow.

1. Case Study
Sparrow Health System
Sparrow Health System strengthens financial position with
Convergent’s flexible, low maintenance, legal-backed
approach to revenue cycle management.
Sparrow is the largest health system in deliver on their promise of low maintenance
mid-Michigan, with two campuses in Lansing, outsourcing,” said Kevin Sharp, Director of
Sparrow Clinton Memorial Hospital in St. Revenue Cycle for Sparrow.
Johns, and Sparrow Ionia Hospital in Ionia.
Convergent’s unique attorney-led approach to “Our experience with
Issues collections brings legal expertise to problem Convergent has brought
claims, helping to quickly resolve issues and revenue to our bottom
expedite payment.
Like many other hospitals across the country, line, improved our cash
Sparrow Health System struggled with a large flow and reduced denials.
The direct supervisor of the Convergent
volume of aging claims. With back office staff They have delivered on
collectors who work Sparrow accounts is an
already busy working current receivables, the every promise made
attorney, able to put appropriate pressure on
cash potential of these older accounts during the sales process
payers for denied and delayed payments.
remained untapped.
Convergent’s legal department handles the and set out in the
higher value accounts from Sparrow, where contract.”
Eager to generate revenue from inappropri-
their clout and expertise help to ensure prompt
ately denied claims and delayed payments
payment. Kevin Sharp
from non-government payers, Sparrow turned
Director of Revenue Cycle
to Convergent Revenue Cycle Management,
Sparrow’s billers also benefit from the knowl- Sparrow Health System
Inc. for help. Convergent has two decades of
edge and insight of Convergent’s legal team.
demonstrated success helping healthcare
“Convergent regularly gives workshops for our
organizations tackle complex reimbursement
staff to help them understand laws and
challenges such as older receivables. With its
regulations, such as ERISA and state-specific
low maintenance approach to outsourcing and
clean claims laws. With this knowledge, they
a robust staff of legal experts to accelerate
now know when to pursue claims, what to ask,
collections, Convergent was a sound choice
and how to ask. Our billers become much
for Sparrow.
more effective and more confident in working
problem accounts,” said Amy Kremkow,
Answers Manager of Facility Billing.
Convergent began at once working on The relationship between the two
Sparrow’s backlog of claims, tackling the high organizations is more akin to a partnership
volume of mid-value claims aged 180 days than that of a vendor and client, with
and older. With experienced collectors working Convergent looking beyond its own business
on and off site, Convergent made the goals to help Sparrow improve its revenue
transition to outsourcing immediate for cycle processes and reduce the incidence of
Sparrow. “Vendors always promise an easy problem accounts.
transition, but it doesn’t usually work out that
way. I was truly impressed with how seamless
the Convergent transition process was. They
worked with the information we gave them to
888.511.7901 www.convergentusa.com/healthcare Page 1

2. “Convergent is always thinking of new The relationship with Convergent has also
processes to help us improve our own collec- introduced new processes for collecting “Our low maintenance
tion efforts,” Kremkow pointed out. accounts in a more timely way, helping to
approach to outsourcing,
reduce total receivables. Collecting on
For example, Convergent was able to: accounts before they age has in turn helped
the legal expertise we
the healthcare system to reduce the fees it bring to problem accounts
• Identify “no authorization” as the most pays to Convergent. and our flexibility in
common denial among aged claims and responding to changing
worked with the hospital to improve the “Convergent constantly gives us feedback, needs have helped
patient access process for obtaining reports, and education sessions to help us Sparrow to strengthen its
authorizations. improve our processes. They don’t just work financial position and
the book of business we give them, but help continually improve the
• Uncover a carrier regularly taking large us improve our overall business, even if it services it provides to its
means less business for them. They are a real
discounts not in line with the contract patients.
between the two organizations and worked part of our team,” said Sharp. “Since they
to adjudicate these claims. have been so willing to help us improve our
overall business in this denied and problem We always strive to be a
claim area, we will continue to consider them true partner and an
• Establish a relationship with the U.S. as potential partners in other areas of need.” extension of our
Department of Veterans Affairs, securing a customer’s management
contact for following up on delayed claims Derek Pickell, President for Convergent staff.”
and settling them more quickly. Revenue Cycle Management, explained how
its revenue outsourcing services have helped Derek Pickell
As Sparrow’s needs change and new issues Sparrow, “Our low maintenance approach to President
arise, Convergent has the flexibility to adapt outsourcing, the legal expertise we bring to Convergent Revenue Cycle
and respond to the unexpected, continually problem accounts and our flexibility in Management, Inc.
evolving processes and on-site staffing—or responding to changing needs have helped
even going further. “In the face of a mini Sparrow to strengthen its financial position
budget crisis, Convergent renegotiated fees and continually improve the services it
and services to help us meet our targets,” said provides to its patients. We always strive to be
Sharp. “They really helped us out, demonstrat- a true partner and an extension of our
ing their commitment to our business needs.” customer’s management staff.”
Outcomes
Sparrow brought Convergent on board to
collect accounts that would otherwise be About Convergent
written off as bad debt. Convergent has
excelled at converting these problem accounts Formed in 1992, Convergent combines healthcare-
to cash. “Our experience with Convergent has focused legal expertise, advanced technology and
brought revenue to our bottom line, improved superior claims reimbursement management to
deliver outstanding results for more than 630 Convergent Revenue Cycle
our cash flow and reduced denials. They have
hospital clients, resolving their most significant
delivered on every promise made during the Management, Inc.
receivables management challenges.
sales process and set out in the contract,” said
Sharp. 13575 Heathcote Boulevard
With more than 690 employees, including more Suite 300
than 60 healthcare attorneys, Convergent is the Gainesville, VA 20155
With Convergent focusing on aged accounts, leading provider of solutions for non-governmental 888.511.7901
Sparrow billers can fully focus their efforts on insurance, self-pay, Workers' Compensation, motor
more collectible current accounts. “With vehicle accident and aged problem claims, as well www.convergentusa.com/healthcare
Convergent, our billers are able to stay as patient access solutions. In addition to helping
our clients resolve their most complex reimburse-
focused on current accounts before they age,
ment issues, Convergent’s legal workshops,
helping us to significantly reduce our accounts training and real-time interactive reporting enhance
receivable days,” said Susan Allen, Financial all aspects of the revenue cycle. Learn about our
Clearance Supervisor. services at www.convergentusa.com/healthcare.
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