Case Study: Legacy AR Conversion
Process, Analytics, and Trust Makes Legacy AR Project a “Walk in the Park”
A large pediatric healthcare system made the decision to migrate from their legacy patient accounting system to the Epic Revenue Cycle system. Familiar with the enormity of this task, the healthcare system knew they would need to keep their staff focused on the Epic implementation with as few distractions as possible. With this in mind, they began to search for a partner to handle their legacy accounts receivable. After a lengthy RFP process, MedAssist was selected as the preferred partner.
Working with a truncated timeline of 60 days, MedAssist and the client worked together transitioning over 20,000 legacy accounts totaling $23.7 million before the Epic go live. The major challenges for MedAssist were:
- Deploy a team of revenue cycle professionals to resolve the AR using the client’s processes and procedures
- Build connectivity between the client’s Siemens system and the MedAssist account processing system
- Minimize the support and training required from the client’s employees
- Deliver performance that equaled the cash projections at the beginning of the project
MedAssist utilized Critical Path Management to quickly implement this project. The implementation team identified critical tasks and assigned resources to complete tasks associated with system access, programming, training and reporting. The client placed over 20,000 accounts for $23.7M over two months. Using ANSI Standard claim status results and screen scraping technology, MedAssist used claim status codes and other account characteristics to value accounts based on historical reimbursement and speed of payment. Proprietary analytics and revenue cycle experience, kept the trajectory of cash flow into the hospital at or above the projected levels each month.
Accurate Financial Projections
MedAssist projected a 58% recovery rate based on the aging and financial classes of the legacy AR. Senior management used this projection to forecast cash and allocate appropriate reserves. At the end of the fourth month the liquidation rate was 58.2%. The final liquidation rate was 71%.
“MedAssist brought a cast of true professionals to our project,” said the healthcare system’s Director of Revenue Cycle. “We stayed on track. MedAssist way out-performed the projected return, and represented our claims in an expeditious, thorough, and accurate manner.”
Effective Communication and Trust
Establishing trust and effective communication was paramount during this project. The client and MedAssist established a weekly meeting to address questions, monitor quality and track performance. The partnership successfully fused the client’s policies and procedures with improved analytics and work strategies. This allowed the client to focus on their Epic implementation with confidence their legacy AR was generating cash.
A key to the success in this project was the work strategy developed by MedAssist. MedAssist used analytics to direct efforts based on claim status codes, claim size, and age of account. Accounts with the potential to generate reimbursement quickly were prioritized to provide the client with cash during the transition to Epic. During this process, all accounts were worked to full resolution, applying MedAssist’s best practices and technology.
The Director of Revenue Cycle at the healthcare system, who spent many years as an internal auditor was very involved in this project in an attempt to ensure accuracy, truthfulness, and compliance in every aspect. “I quickly came to realize that those qualities are exactly the backbone of the product that MedAssist was offering!”
- Thorough implementation process utilizing Critical Path Management to identify critical tasks and required resources.
- Established communication and trust through scheduled meetings to monitor quality and performance.
- Provided accurate financial projections for senior management to forecast cash and allocate reserves.
- Exceeded the projected cash goal using work strategies, revenue cycle experience and analytics.