Cash Flow Improvement

The health care industry is under pressure. The reductions in reimbursement, cost increases and the threat of overpayment audits have forced health care organizations to review all of their key business processes with the goal of improving cash flow from the delivery of medical services. Most health care organizations realize this is an important first step in preparing for the changes that the industry will undertake over the next 5 to 10 years.

We’re seeing many health care organizations undertake an overall business assessment. These assessments result in a list of opportunities for improvement in their business operations. The opportunities are then prioritized by using the approach of highest return/lowest risk for each item. The major areas for improvement have typically been as follows: (1) Billing; (2) Collection; (3) Reimbursement; (4) Coding/Documentation and (5) Overhead Cost reduction.

The majority of organizations find that the potential improvement in cash flow is not a one-time hit but an annual improvement because their business processes have been updated.  Based on our experience, the annual cash flow dollar improvement opportunity is typically in the range of $500,000 to $1,000,000, depending on the size of the organization.


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