Sitka Community Hospital Case Study
HRG Partner from July 2014 - Sept 2019
Healthcare Resource Group
Healthcare Resource Group (HRG) was built on years of experience working in the healthcare industry and with facilities of all sizes, engaging in a wide array of challenges and providing solutions.
HRG’s OutPartnering™ Center is equipped with great people backed by superior technology. We produce industry leading services and get the results necessary for our partner’s to meet their individual goals and objectives.
Our growth success has been tied directly to our ability to work with our partners, to provide immediate benefits, long-term results, and exceed expectations.
Sitka Community Hospital
Sitka Community Hospital was a licensed Critical Access Hospital with 15 Long Term Care beds. It was owned and operated by the City and Borough of Sitka, AK.
Through the years, they helped generation after generation reach better health. Being a large part of their community was always an important goal, as well as providing health services for the community to depend on.
It was purchased from the City, on 8/1/2019, by Southeast Alaska Regional Health Consortium (SEARHC) and is now integrated into Mt. Edgecumbe Medical Center
The Fit
Sitka was a small Critical Access Hospital that needed an Interim PFS Manager. Having just gone through a transition from Healthland Classic to Healthland Centriq, they were looking for a partner to assist in the changes that come with a system conversion. HRG placed a consultant on-site who specialized in PFS and Patient Access Management, CDM, and System Administration. These were all areas that needed attention and optimization.
A review of the implementation design and potential for modifying the master files was essential. Some of the master files were modified to enhance processes, however the work queues for billing and follow up purposes were not ideal. As a result, it was essential to partner with the EBO at HRG to work the follow up on accounts aged 60+ days from discharge. The EBO project was implemented at the end of 2014 and that time, Sitka’s total AR was $5.7 million and the AR days were 85. By the end of the first year of the partnership, the total AR was down to $3.8 million and AR days were 59. During this year, HRG’s consultant was able to provide continual process improvements, while the legacy AR was being resolved by the EBO department.
In additional to the services already provided, Sitka implemented a Self-Pay contract with HRG. HRG handled all the phone calls and statements for the patient accounts. The team at Sitka continued to take care of the patients that would come on site for billing questions.
Key Accomplishments
Improved master files, including CDM to effectively and efficiently create viable and accurate claims while also, working with the biller scrubber to auto-correct and edit items that could not be performed in their health information system.
Optimized process improvements, working with various on-site departments, including PFS and Patient Access., resulting in a positive impact on the AR.
At the beginning of HRG’s engagement with Sitka, their total AR was $5.7 million and their AR days were 85. When the hospital was purchased at the end of July 2019, their total AR was $2.4 million and AR days were 41, due to HRG’s performance.
Starting with average cash collected per month being $1.6 million, the average revenue per month was $1.9 million and the net cash collected compared to revenue was 84%. When they closed, the average cash per month increased to 2.3 million, the average revenue was $2.6 million and the rate improved to 91%.