See for yourself the collection improvement Baptist Medical Associates experienced from McKesson claims management services.

1. Case Study
At a Glance
Organization
Baptist Medical Associates
Baptist Medical Associates/ and Baptist Urgent Care
Baptist Urgent Care
Louisville, Ky.
Outsource Model Helps Physician Group
– Serving one hospital and Improve Collections
28 ambulatory centers Together, Baptist Medical Associates that to keep pace with the growth from
– 75+ full-time physicians and its affiliate, Baptist Urgent Care, a collections standpoint, additional
make up a large, multi-specialty revenue cycle support would be needed.
– 24,000 claims/month
physician group aligned with Louisville,
Ky.-based Baptist Healthcare System. “We knew strategically that we would
The group employs more than 75 be experiencing continued growth,
Solution Spotlight
physicians and bills about 24,000 both in the number of offices and the
– McKesson Revenue claims per month. Baptist Healthcare, number of physicians,” Smith says.
Management Solutions the parent organization, operates “So we wanted to find a partner that
519-bed Baptist Hospital East and could rapidly stabilize and improve the
28 other care facilities in Kentucky. core revenue cycle functions as we
Critical Issues brought new groups on. The objective
– Rapid growth in both locations In 2008, Baptist Medical Associates/ was for us to be freed up to focus on
and physicians Urgent Care was growing rapidly. As business development and continued
a result, the group needed support in practice acquisition.”
– Inherent internal revenue cycle
several key areas of the revenue cycle
limitations
— most notably claims submission, Answers
– Inadequate business intelligence A/R follow-up and collections. In In 2005 Baptist Medical Associates
and reporting response to Baptist Medical’s specific had implemented Horizon Practice
requirements, McKesson deployed a Plus™, McKesson’s integrated practice
customized, outsourced billing support management solution. As a result, the
Results model that allowed the practices to group sought a revenue cycle support
– Supported successful physician continue doing their own coding service that included expertise in the
network growth and charge entry while creating new Horizon Practice Plus application.
external safeguards to strengthen
– Average monthly charges increased A/R management.
56.5% over a 12-month period Smith acknowledges that some anxiety
initially existed among both managers
– A/R days currently at 32.4 Challenges and physicians about ceding claims
– Aged A/R > 120 days is 16.6% According to Revenue Cycle Director management duties to McKesson.
Katherine P. Smith, Baptist Medical “I think that’s to be expected any
– Improved self-pay collections process
Associates was aggressively acquiring time you’re making significant changes
practices in 2008 to expand its to the revenue cycle process,” Smith
geographic footprint and specialty mix. says, adding that one common concern
Over a 12-month period, the number of was that the group could experience
physicians in the group nearly doubled. a sharp drop in collections during the
System and group executives realized transition period.

2. Case Study
“We’re extremely pleased Results Along with the financial improvements,
With McKesson managing claims the partnership has helped Baptist
with McKesson’s performance Medical Associates benefit from
management responsibilities, there
in all areas. We’re an was no revenue fall-off and collections stronger financial reporting. Based on
actually improved quickly. Today, report design developed by Baptist,
organization that strives for Baptist Medical Associates is reaping McKesson implemented customized,
monthly reporting scorecards
excellence and one where the benefits of its unique partnership
with McKesson. The group’s average for individual practices and the
the status quo is never good monthly charges increased by 56.5% organization as a whole. According
over a 12-month period and credit to Elizabeth M. North, Director of
enough. So the fact that Reimbursement for Baptist Hospital
balances fell by 25.5%.
McKesson has been able to East, the reports are far superior
The collaborative management process to anything the organization had
deliver at this very high level previously used and are a vital tool for
between McKesson and Baptist has
is completely consistent with supported organizational growth and improving business decisions. “We’re
resultant gains in monthly charges. extremely pleased with McKesson’s
our culture and a real positive McKesson’s implementation of a performance in all areas,” North says.
from a financial management robust denial management system
and the development of a rigorous “We’re an organization that strives for
standpoint.” and systematic patient collection excellence and one where the status
process likewise have strengthened quo is never good enough. So the fact
that McKesson has been able to deliver
Elizabeth M. North the revenue cycle. McKesson further
at this very high level is completely
Director of Reimbursement boosted claims management by
deploying Ambulatory Claims Manager, consistent with our culture and a real
Baptist Hospital East a web-based claims editing and status positive from a financial management
solution from RelayHealth®. standpoint.”
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