How to Increase Cash Flow Using Data and Analytics
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Healthcare organizations face numerous financial challenges, such as declining reimbursements and rising costs. Utilizing data analytics can improve cash flow by streamlining documentation processes and reducing accounts receivable days. Successful implementation of an analytics platform, as exemplified by Thibodaux Regional Medical Center, can lead to significant cash flow improvements and operational efficiency.
How to Increase Cash Flow Using Data and Analytics
- 1. How to Increase Cash Flow Using Data and Analytics
- 2. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. The Top Five 2019 Healthcare Trends This presentation is a summary of the webinar presentation, “Using Analytics to Increase Cash Flow,” by Greg Stock, MPA, President and CEO at Thibodaux Regional Medical Center, and Mikki Fazzio, RHIT, CCS, Director, HIM and Clinical Documentation Improvement, at Thibodaux Regional Medical Center. Greg Stock, MPA CEO Thibodaux Regional Medical Center Mikki Fazzio, RHIT, CCS Director, HIM and Clinical Documentation Improvement Thibodaux Regional Medical Center
- 3. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. In business, cash is king, and that’s true for healthcare organizations too. Financial challenges are the number one issue facing hospitals today, according to a 2018 survey of hospital CEOs by the American College of Healthcare Executives (ACHE). Among the financial challenges facing hospitals today are declining reimbursement, rising costs, changes in payer mix, declining inpatient volume, documentation and coding issues, increased payer denials, more regulatory requirements, and bad debt, to name a few. Cash is King!
- 4. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. To maintain healthy margins, hospital leaders must seek opportunities to boost revenue through improved financial performance and reimbursement. Some common strategies include the following: Improving documentation and coding accuracy. Reducing the number of outstanding bill hold accounts. Reducing accounts receivable (A/R) days. Managing discharged not final billed (DNFB) cases. Common Strategies to Improve Financial Performance > > > >
- 5. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. While many of these strategies have been around for a long time, many C-suites and department leaders are unfamiliar with managing DNFB cases, where bills remain incomplete due to gaps in coding or documents. According to a 2019 poll of “Using Analytics to Increase Cash Flow” webinar attendees, 41 percent said they were “unfamiliar” with their facility’s DNFB process and an additional 19 percent said they were “somewhat familiar.” Only 16 percent of attendees categorized themselves as “very familiar” with the DNFB process at their facility. Managing the DNFB Process
- 6. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Effective management of the DNFB process is one way hospitals can improve their financial performance and cash flow. However, without a robust data analytics program to support these efforts, meeting goals around DNFB improvement remains elusive for many hospitals. Managing the DNFB Process
- 7. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. According to Health Leaders Media, accounts may be unbilled for a variety of reasons: The account requires coding that is not yet complete. The account is coded but awaiting charges. The account is coded but lacks a corresponding charge, often identified during claim-editing. The account is coded but gets rejected during claim- editing because of an invalid revenue code, inaccurate payer designator, or other missing element. Managing the DNFB Process > > > >
- 8. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Whether these accounts are waiting for a medical coder or physician documentation, they can account for millions of dollars just waiting to be processed. The implementation of ICD-10 in 2015 means an additional level of specificity and documentation is required, further compounding the problem for healthcare organizations that don’t get and keep their DNFB process in check. Managing the DNFB Process
- 9. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. As hospital bottom-lines shrink, leadership may respond with belt-tightening tactics such as cutting staff or operating costs, which can appear effective initially. However, these cuts often lead to declining employee morale and can negatively impact the patient experience. Hospitals need to identify a sustainable approach by analyzing opportunities most likely to deliver the ROI they need, and then focus on those identified areas for improvement. Identifying Opportunities for Improvement
- 10. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Without robust analytics to support these improvement efforts, targeted goals or benchmarks may not be realized unless healthcare organizations commit to built-in accountability and visibility to ensure sustained improvements. A focus on improving coding and document- ation processes, such as DNFB, can have big pay offs for healthcare organizations by alleviating cash flow problems and improving efficiency and accuracy in what is frequently a time-consuming manual process. Identifying Opportunities for Improvement
- 11. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Manual, inefficient processes can result in overburdened medical coders and physicians, contributing to burnout. And, if organizations don’t have an analytics platform in place, they may lack the data needed to carry out these processes. The data may be disorganized, or the process of reviewing the data may be overwhelming due to the lack of functionality. Identifying Opportunities for Improvement
- 12. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. The right analytics platform can also help automate these time-consuming processes, by organizing, sorting, and filtering data. This allows the billing department to be proactive by putting processes in place to avoid delays in payment and spend less time organizing the data and more time putting the data to use. Once in place, the analytics platform can help identify the greatest areas of opportunity for further improvements. Identifying Opportunities for Improvement
- 13. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. The first step for many healthcare organizations embarking on a process improvement journey is investing in an open, scalable platform for analytics. While the impetus for process improvement is often financial concerns, making an investment in analytics may seem counterintuitive. This is a necessary step in finding and targeting the greatest opportunities for improvements. Using Data Analytics and Process Improvement to Achieve Goals
- 14. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. In the example of the DNFB process improvement, this might include the following steps: Invest in analytics. Fine-tune and verify analytic data. Communicate consistently with physicians and key departments. Educate key departments on data and analytics and give access when appropriate. Revamp time-consuming processes. Revise department structure and create new roles. Maintain and augment results through continuous improvement. Using Data Analytics and Process Improvement to Achieve Goals > > > > > > >
- 15. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. In the case of Thibodaux Regional Medical Center, these steps resulted in a $2.4 million increased cash flow, according to the results published in Health Leaders Media. The organization was able to achieve these results because its analytics platform offered fast and easy access to the information needed. The medical center was also able to improve physician documentation, reduce A/R days, and improve workflow. Using Data Analytics and Process Improvement to Achieve Goals
- 16. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Inaccurate analytic data has little value and can cause resistance to change. When embarking on the process improve- ment journey, it’s important for healthcare organizations to invest both the time and money that’s needed to provide access and clarity of data to drive change. Consistently sharing data with physicians can help promote engagement and keep them involved and committed to the process. Additionally, having a robust analytics platform, efficient processes, and account- ability translates to sustained success. Creating Lasting Change
- 17. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. With declining cash flows, increasing regulatory and reporting requirements, and tightening margins, healthcare organizations need to be mindful of their bottom lines and their cash flows. Improved reimbursement, efficient, automated processes, and proactive action are all needed for hospitals to stay afloat in today’s demanding environment. The right data analytics platform can help organizations identify opportunities, provide timely access to the right data, and monitor trends to maintain and expand their progress. Creating Lasting Change
- 18. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. For more information: “This book is a fantastic piece of work” – Robert Lindeman MD, FAAP, Chief Physician Quality Officer
- 19. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. More about this topic Link to original article for a more in-depth discussion. How to Increase Cash Flow Using Data and Analytics Healthcare Data Management: Three Principles of Using Data to Its Full Potential Sean Whitaker Why Clinical Quality Should Drive Healthcare Business Strategy Health Catalyst Editors Linking Clinical and Financial Data: The Key to Real Quality and Cost Outcomes Bobbi Brown, MBA, Senior VP Transforming Healthcare Analytics: Five Critical Steps Ann Tinker, MSN, RN, Professional Services, Senior VP; Dan Hopkins, Professional Services, VP Prioritizing Healthcare Projects to Optimize ROI Dorian DiNardo, Senior VP of Analytics; Aaron Neiderhiser, Product Management, Sr. Director
- 20. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Other Clinical Quality Improvement Resources Click to read additional information at www.healthcatalyst.com Greg Stock is the CEO at Thibodaux Regional Medical Center. He brings with him valuable professional experiences and important instincts relative to succeeding in today’s often volatile health care industry. His collaborative management style, strong physician relations skills, an easy, outgoing manner, sense of humor and ability to challenge his staff to perform at their very best, enables him to continue achieving and earning the loyalty and respect of others who also are committed to excellence. Greg earned a Bachelor of Arts degree in 1978 and a Master of Health Care Administration/Public Administration degree from Brigham Young University in 1980. Greg Stock, MPA
- 21. © 2018 Health Catalyst Proprietary. Feel free to share but we would appreciate a Health Catalyst citation. Other Clinical Quality Improvement Resources Click to read additional information at www.healthcatalyst.com Health Catalyst is a mission-driven data warehousing, analytics and outcomes-improvement company that helps healthcare organizations of all sizes improve clinical, financial, and operational outcomes needed to improve population health and accountable care. Our proven enterprise data warehouse (EDW) and analytics platform helps improve quality, add efficiency and lower costs in support of more than 65 million patients for organizations ranging from the largest US health system to forward-thinking physician practices. Health Catalyst was recently named as the leader in the enterprise healthcare BI market in improvement by KLAS, and has received numerous best-place-to work awards including Modern Healthcare in 2013, 2014, and 2015, as well as other recognitions such as “Best Place to work for Millenials, and a “Best Perks for Women.”