Every physician practice strives to be paid for services rendered and billed in a timely manner. In June 2016, the John Muir Physician Network was looking for a long-term cash flow solution for independent group practices supported through their Community Connect program. The San Francisco, California-area physician group needed to improve its net collection ratio and decrease days in accounts receivable (A/R). Any payments due from patients, payers, or other guarantors are considered A/R.
Navigant Consulting, Inc. collaborated with John Muir in the backend business office, offering a billing solution that would improve revenue cycle performance.1 By initially providing a 12-person full-time equivalent (FTE) model, with outsourced professionals making patient phone calls, taking billing calls, and following up on A/R, they began exceeding expectations and meeting the group practice key performance indicators (KPIs) within six months. In October of 2016, Navigant reduced the number of FTEs to seven, and eventually determined that a six-person team could meet the needs of 13 busy practices.
Actions that are driving performance results:
Navigant took over with 25% of the revenue in the 120-day-plus bucket on May 31, 2016, which is very hard to collect on at that time and age of the claim.
Today, Navigant has reduced the overall claim revenue at 120-plus days in age from 25% to 1%. This effectively doubled the amount of money aged zero to 30 days that is collected before aging to 31 to 60 days.
1. Business process management services described herein are provided by Navigant Consulting, Inc.'s wholly owned subsidiary, Navigant Cymetrix Corporation.
Prior to June 2016, we did not have an optimal solution and needed open communication with our practices that included transparent reports and dashboards as part of our full revenue cycle collections. In Navigant, we have a partner that knows A/R and understands compliance issues...exactly what our successful physicians deserve!”
Director, Physician Services
John Muir Physician Network