Impact 2016-11-30T17:34:11+00:00

The Impact of ARxChange

“ARxChange provided visibility into our collections performance. We uncovered value where we thought there was none, and converted this value into operating capital within weeks.” – Chief Financial Officer, Regional Health System (Southeast)

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Academic Medical Center (northeast)

ARxChange achieved roughly $12.3M in improved margin performance annually by identifying insurance opportunity, enhancing data quality, improving collections, reducing costs and enhancing productivity.

Issue

  • Growth in bad debt was projected to reach a level that would be unsustainable and continue to grow due to HDHP and shift in cost share to patients
  • Aggressive growth and acquisition plan would further complicate an already challenged operational and technical environment for patient collections
  • Inability to gain insights into patient collections by patient segment due to limited analytical capabilities and tools

Impact

  • $9.5M improvement in insurance collections using enhanced insurance discovery capabilities
  • $2.75M improvement in net collections on patient accounts, which resulted in reduced bad debt
  • Enabled a more cost effective and scalable operating model to support growth strategy
  • Enhanced data integrity of patient information by 25% to support optimized front-end registration and financial assistance processes

Regional Health System (southeast)

ARxChange was used to quantify the value of the one-time placement of zero balance accounts and is used ongoing to drive ~25% improvement in patient collections

Issue

  • Increasing Uncollected Receivables & Bad Debt: Outstanding receivables and bad debt reached the millions; Limited ability to improve performance without an innovative solution
  • Resource Constraints: Resources were limited due to market competition and increasing out-of-pocket costs associated with high-deductible health plans
  • Data Integrity Impacting Collections: A recent system cutover created data integrity issues that adversely impacted ability to collect outstanding patient balances

Impact

  • Secured a one-time $4.4M guaranteed, non-recourse payment for patient accounts with $0 balances
  • Improved net revenue yield on patient accounts by 25%, net of costs
  • Enhanced data integrity of patient information by 29% to support optimized front-end operations and improved efficiency of the collections process on the back-end.

DME provider (national)

ARxChange identified a 300bp margin improvement opportunity related to improved patient collections and insurance discovery on self-pay accounts; ARxChange is also being used to refine strategic marketing and growth plans

Issue

  • Lower than expected margin performance on patient accounts due to underperforming collections and increasing cost to collect
  • Inability to gain insights into patient collections by patient segment due to limited analytical capabilities and tools
  • Lack of access to data to clearly articulate a growth strategy due to lack of insight on margin performance by patient segment for services by market

Impact

  • 300 bp margin improvement related to improved collections on patient accounts and reduced operating expense
  • Delivered the analytical capabilities necessary to clearly articulate a growth strategy by patient segment, service and market
  • Improved patient contact data integrity by over 50% within two months which further enhanced the patient collections workflow