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Medical billing shift_to_mc_kesson_boosts_performance_medford


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Medical billing shift_to_mc_kesson_boosts_performance_medford

  1. 1. Case Study The Medford Radiological Group, PC Billing Shift to McKesson Boosts Performance,At a GlanceOrganization Reduces Costs, Improves Coding and ComplianceThe Medford Radiological Group, The Medford Radiological Group, would be expensive; the costs ofPC, Medford, Ore. PC, Medford, Ore., is a large, some systems approached $500,000.– Serving four hospitals 20-physician group providing And even with the new platform and three imaging centers imaging services to four hospitals in place, there was no guarantee– 20 full-time physicians and three imaging centers in billing personnel could quickly and– 267,287 annual procedures southern Oregon. The group effectively adapt to the technology, handles about 267,000 procedures says Roseanne McLaren, CEO of annually. The Medford Radiological Group.Solution Spotlight– McKesson Revenue In 2008, Medford was preparing “Our concern was that we would Management Solutions to upgrade its antiquated practice invest all this money, yet we still– McKesson Practice Consulting management platform. Yet major didn’t know if the staff could make SolutionsTM concerns existed about how the transition from DOS to quickly the group’s billing staff Windows,” McLaren says. “So could adapt to a new system. we assumed there would be aCritical Issues Ultimately, Medford decided significant falloff in collections for– Antiquated billing platform outsourcing its billing operations a period of time. In addition, the– Coding concerns to McKesson made more sense – new platform would do nothing to from an economic and business address concerns we had about the– Excessive billing overhead operations standpoint – than quality of our coding.” investing in costly new equipmentResults and software. Answers– Billing costs reduced by more McKesson was asked to submit a than 60% Challenges proposal for practice management,– Annual savings of $1.3 million For almost 20 years, The Medford but instead suggested outsourced Radiological Group had operated billing. The McKesson sales director– Improved coding and a DOS-based practice management provided “a very impressive compliance system. One problem with the overview of what its outsourced– Average charge per procedure paper-intensive application was its billing service could do,” McLaren increased by 24% inefficiency. The group was forced says. The Medford management to constantly add billing personnel team also traveled to McKesson’s to keep pace with practice volume radiology billing center in Fresno, growth, and the billing staff had Calif., to learn more about the increased to more than 20 people company’s capabilities. by 2008. “McKesson walked us through To solve the problem, Medford how the process worked and we solicited request-for-proposals appreciated the sophistication of (RFP) for a replacement system. the operation,” McLaren says. But investing in a new practice “It was also a real plus for us they management software application were located on the West Coast.”
  2. 2. Case Study “If I were to grade McKesson, The Medford Radiological Group Since McKesson took over billing, looked at two other outsourced the group’s average charge per I would have to give them an billing vendors before ultimately procedure has climbed more than A-plus. It’s been a very good deciding on McKesson. 24%. The gain reflects improved coding and documentation, as well experience … We knew With McKesson taking charge of as fee increases recommended by the group’s billing operation, one McKesson. In addition, eliminating what we wanted from this of the most pressing challenges was the internal billing department relationship. What we didn’t developing an orderly process for produced annual savings of about downsizing the legacy billing $1.3 million. have any idea about were all department. “It was difficult, because we needed some of these Overall, billing costs have tumbled the additional benefits that people during the transition,” by more than 60% since McKesson would accrue from working McLaren says. “Fortunately, took over. Part of those savings McKesson was able to assist us in includes dramatic reductions in with McKesson. It’s been an structuring severance agreements healthcare premium expense due and providing other support.” to a healthier, smaller workforce, extremely positive experience McLaren says. Reporting and for the group.” Results compliance also have been McKesson established electronic improved significantly, she says, interfaces with Medford’s hospital and with the elimination of the partners and also assigned a billing department, human resource Roseanne McLaren management has been greatly permanent liaison to work on-site to CEO address any questions or challenges. simplified. According to McLaren, one of the Medford Radiological Group most important benefits produced “If I were to grade McKesson, by the shift to McKesson has been I would have to give them an an improvement in coding. A-plus,” McLaren says. “It’s been a very good experience. We had a “Their coders are all certified, and difficult time with the transition as a result, we’ve seen a major from a people standpoint, but improvement in the coding as McKesson was super throughout. well as the documentation by We knew what we wanted from physicians,” she says. “Coding had this relationship. What we didn’t always been a concern for us, but have any idea about were all the now we’re confident that even with additional benefits that would our most complex cases, such as accrue from working with interventional radiology, we are McKesson. It’s been an extremely documenting and coding correctly.” positive experience for the group.”McKesson Copyright © 2010 McKesson Corporation and/or one of its subsidiaries. All rights reserved. McKesson Practice5995 Windward Parkway Consulting Solutions is a trademark of McKesson Corporation and/or one of its subsidiaries. All other productAlpharetta, GA 30005 or company names mentioned may be trademarks, service marks or registered trademarks of their respective companies. PRT441-10/