Headquartered in San Francisco, Dignity Health operates 39 hospitals and 250 ancillary clinics, and employs more than 60,000 caregivers and staff across California, Arizona, and Nevada. The fifth-largest health system in the nation and the largest not-for-profit hospital provider in California, Dignity Health reported $12.6 billion in net operating revenue for 2016.
In California, there are 14 medical groups that are affiliated with Dignity Health Medical Foundation (DHMF), the largest medical group within Dignity Health. Through its organizational model, DHMF employs clinic staff and contracts with physician groups on an exclusive basis to provide healthcare services to Dignity Health patients.
In January 2017, midway through the fiscal year, DHMF found its performance trending downward in such major leading performance indicators as days in accounts receivable (AR); cash; and earnings before interest, tax, depreciation, and amortization (EBITDA). This resulted in an immediate imperative for DHMF to improve performance in these key areas, as well as provider documentation — specifically, how DHMF’s performance compares to Medicare’s “bell curve” for specialties.
DHMF engaged Navigant to help improve revenue-cycle operations, to include accelerating cash flow and EBITDA growth. DHMF and Navigant staff collaborated to deploy a series of steps, including:
Navigant’s onsite staff collaborated well with DHMF staff, partnering to mine the data and develop a plan of attack, which they quickly implemented. We began to see wins almost immediately.”
Christopher McGoldrick, Chief Financial Officer, Dignity Health Medical Foundation