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Advanced Revenue Cycle
Concepts: Benchmarking
Part II
Case Studies and Top 10 Lists
July 2012
Case Study: Health System in the Southwest
  Benchmarking in Practice
• Started system-wide benchmarking in 2004
• Wanted to create streamlined and consistent reporting for revenue cycle information
• Used various methods and systems in each hospital for calculating and reporting revenue cycle
  information
• Decided to develop one standard scorecard that each facility would use to report revenue cycle metrics


           Challenges                          Action Taken                                 Benefits

• Deciding what data and               • Six major areas were selected to      • Sense of camaraderie and healthy
  benchmarks would depict the            be monitored, including revenue         competition among the facilities
  health of the revenue cycle across     outcomes, registration, and pre-      • The scorecard has evolved from
  all hospitals                          service coordination, HIM, case         being an excellent executive report
                                         management, contracting and             to an excellent education tool
• Apples-to-apples comparison of         revenue recovery, and patient
  data                                   account services                      • Net revenue increase of 24% over
• The necessary data had to be                                                   the past 6 years
                                       • Targets were established for all of
  readily available                      the goals in the six areas and        • Increase in cash collections of ~
• Deciding what targets to use           monthly reporting started; at year      13% and a decrease in A/R days
  based on HFMA, HARA, and other         end, a revenue integrity meeting is     from 78 days to 42 days
  sources                                held, and facilities receive awards
                                         and recognition
• Gaining buy-in from staff about
  the changes being implemented


  2   Confidential                                                                                 Services
Case Study: Large Physician Clinic
  Benchmarking in Practice
• An HIM director at a large physician clinic had 21 transcriptionists
• Each averaged about 140 lines per hour using conventional word processing software
  and cassette tapes
• The transcription unit supports 80 physicians at a cost of 15 cents per line

           Challenges                           Action Taken                                     Benefits
• Needed to increase productivity   • HIM director determined that in similar         • Productivity continues to
                                      settings, 1 transcriptionist supports 4
  while maintaining quality           physicians, and researched transcription best     increase with an expected
                                      practices on the AHIMA and American               average of 275 lines per
• Transcription processes were        Association for Medical Transcription
                                                                                        transcriptionist
  not state-of-the-art in the         websites and in AHIMA’s Communities of
                                     Practice
  organization                                                                        • Cost per line is expected to
                                    • Talked to peers on local HIM association          decrease to approximately 12
• Little knowledge of benchmarks      board and posted a discussion thread on the
                                      Ambulatory Care Community of Practice;            cents per line
  or appropriate targets              attended a national convention, visited
                                      vendors, attended lectures on best practices
                                      and transcription technology, and identified
                                      goals for lines/hour and cost per line
                                    • Identified 10 transcription departments of
                                      similar size and scope and interviewed the
                                      HIM director or transcription manager at
                                      each; decided to pursue new
                                      software, templates, and a digital dictation
                                      system; planned for an incentive program
                                      and explored allowing transcriptionists to
                                      work from home




  3   Confidential                                                                                      Services
Top 10 Things to Do
1.     Keep your benchmark meetings short and concise – set up
       subgroups that will meet separately to identify issues and develop
       action plans
2. Schedule annual reflection/goal-setting days
3. Communicate to all relevant employees the reasons you are
   tracking benchmarks
4. Include the right people
5. “Arm wrestle” your CEO or CFO into letting you attend the national
   MAP event
6. Question the numbers repeatedly
7.     Pictorialize your goals
8. Ensure that you have access to the right data on a timely basis
9. Reward success
10. Stay the course and bring chocolate to meetings
4    Confidential                                                Services
Top 10 Things Not To Do
1. Get stuck in a rut
2. Set goals that are too large
3. Bring reams and reams of paper to meetings
4. Try and do it all yourself
5. Assume that someone else in the organization is doing it
6. Analyze benchmarks in a silo
7. Let technology stifle your goals
8. Push the information out to your team
9. Use benchmark meetings as a way to point out flaws in
   coworkers and the organization
10. Just kidding – there are only 9

5   Confidential                                       Services

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Advanced Revenue Cycle Benchmarking Case Studies

  • 1. Advanced Revenue Cycle Concepts: Benchmarking Part II Case Studies and Top 10 Lists July 2012
  • 2. Case Study: Health System in the Southwest Benchmarking in Practice • Started system-wide benchmarking in 2004 • Wanted to create streamlined and consistent reporting for revenue cycle information • Used various methods and systems in each hospital for calculating and reporting revenue cycle information • Decided to develop one standard scorecard that each facility would use to report revenue cycle metrics Challenges Action Taken Benefits • Deciding what data and • Six major areas were selected to • Sense of camaraderie and healthy benchmarks would depict the be monitored, including revenue competition among the facilities health of the revenue cycle across outcomes, registration, and pre- • The scorecard has evolved from all hospitals service coordination, HIM, case being an excellent executive report management, contracting and to an excellent education tool • Apples-to-apples comparison of revenue recovery, and patient data account services • Net revenue increase of 24% over • The necessary data had to be the past 6 years • Targets were established for all of readily available the goals in the six areas and • Increase in cash collections of ~ • Deciding what targets to use monthly reporting started; at year 13% and a decrease in A/R days based on HFMA, HARA, and other end, a revenue integrity meeting is from 78 days to 42 days sources held, and facilities receive awards and recognition • Gaining buy-in from staff about the changes being implemented 2 Confidential Services
  • 3. Case Study: Large Physician Clinic Benchmarking in Practice • An HIM director at a large physician clinic had 21 transcriptionists • Each averaged about 140 lines per hour using conventional word processing software and cassette tapes • The transcription unit supports 80 physicians at a cost of 15 cents per line Challenges Action Taken Benefits • Needed to increase productivity • HIM director determined that in similar • Productivity continues to settings, 1 transcriptionist supports 4 while maintaining quality physicians, and researched transcription best increase with an expected practices on the AHIMA and American average of 275 lines per • Transcription processes were Association for Medical Transcription transcriptionist not state-of-the-art in the websites and in AHIMA’s Communities of Practice organization • Cost per line is expected to • Talked to peers on local HIM association decrease to approximately 12 • Little knowledge of benchmarks board and posted a discussion thread on the Ambulatory Care Community of Practice; cents per line or appropriate targets attended a national convention, visited vendors, attended lectures on best practices and transcription technology, and identified goals for lines/hour and cost per line • Identified 10 transcription departments of similar size and scope and interviewed the HIM director or transcription manager at each; decided to pursue new software, templates, and a digital dictation system; planned for an incentive program and explored allowing transcriptionists to work from home 3 Confidential Services
  • 4. Top 10 Things to Do 1. Keep your benchmark meetings short and concise – set up subgroups that will meet separately to identify issues and develop action plans 2. Schedule annual reflection/goal-setting days 3. Communicate to all relevant employees the reasons you are tracking benchmarks 4. Include the right people 5. “Arm wrestle” your CEO or CFO into letting you attend the national MAP event 6. Question the numbers repeatedly 7. Pictorialize your goals 8. Ensure that you have access to the right data on a timely basis 9. Reward success 10. Stay the course and bring chocolate to meetings 4 Confidential Services
  • 5. Top 10 Things Not To Do 1. Get stuck in a rut 2. Set goals that are too large 3. Bring reams and reams of paper to meetings 4. Try and do it all yourself 5. Assume that someone else in the organization is doing it 6. Analyze benchmarks in a silo 7. Let technology stifle your goals 8. Push the information out to your team 9. Use benchmark meetings as a way to point out flaws in coworkers and the organization 10. Just kidding – there are only 9 5 Confidential Services