REVENUE CYCLE | Case Study UC Davis Medical Center SACRAMENTO, CA THE ORGANIZATION THE SOLUTION UC Davis Medical Center (UCD) is a 645-bed academic medical center in Sacramento, California, with an associated 800-member physician group. The medical center operates in a highly competitive healthcare market and has gross patient revenues of $1.9 billion per year. The Solution Renewal project substantially improved UC Davis’ processes and tools, providing more robust and flexible reporting capabilities and increased accountability. Major initiatives included: THE OPPORTUNITY In the late 1990s, UCD engaged Huron Healthcare to implement its Revenue Cycle solution. The engagement substantially lowered both AR days and bad debt referred to collection agencies, while increasing productivity. In 2010, UCD re-engaged Huron for a Revenue Cycle Solution Renewal project. UCD was still using the core tools and processes from the original engagement, but its organizational structure had grown and evolved in response to environmental changes. In addition, Huron Healthcare’s tools had become more automated and included increased functionality, particularly in the areas of reporting and denials management. “We engaged Huron Healthcare again primarily because we were seeking to further improve the receivables process,” said Ann Frankel, Assistant Director of Finance, UCDHS Revenue Cycle Director. “We also needed to increase productivity and quality. The Revenue Cycle Solution Renewal helped us take our performance to the next level. As a result, we’ve gone from very good to outstanding. It was a huge step forward.” 1-866-229-8700 | huronconsultinggroup.com IMPROVING PATIENT ACCESS Insurance Verification. The patient access team moved from an internal workflow system to Huron’s robust ONTRAC® tool. Online workdrivers, along with real-time reporting capabilities, allowed the team to respond more quickly to patients’ urgent and elective needs. The team also expanded the number of accounts they could manage, thanks to better workflow efficiencies. Financial Counseling. In addition to the new ONTRAC tool, Huron’s financial counseling solution was expanded to include the Emergency Department, enabling UCD to manage and track financial screening initiatives for ED patients. Process and Training. The Huron team worked collaboratively with leadership to identify process breakdowns and training opportunities. By leveraging the new ONTRAC workflow management tool, UCD improved performance on key metrics related to eligibility verification, authorization procurement, and financial counseling conversions. UPDATING PATIENT FINANCIAL SERVICES PROCESSES Billing and Collections Follow-up. The new TRAC® tool improved collections and billing work-in-progress processes throughout the hospital and outpatient areas. Quoted in this case study are: Ann Frankel Assistant Director of Finance, UCDHS Revenue Cycle Director Kelly McMillian Manager of Financial Clearance and Hospital Access Services Lana Fee Manager for Technical Insurance Services Jack Porter Manager of Professional Billing Group, UCD Medical Group Terri Van Bibber Manager of Billing Systems Support Ruth Baldwin Manager of Patient Billing Customer Service Client titles in this case study reflect positions at time of our engagement REVENUE CYCLE | Case Study Denials Management. Huron helped integrate denials data into the collections process. This alerts collections staff to begin working an account immediately upon receipt of an administrative denial. Management is now able to track and trend their denials populations and implement proactive denials prevention processes. Report and Meeting Management. The Solution Renewal enhanced accountability, allowing management to focus closely on key back-end initiatives to increase cash collections. These included reducing collections workin-progress, removing barriers to billing challenges, and providing greater focus on high dollar accounts for quick resolution. PROVIDING UNMATCHED VALUE INCREASED CASH FLOW UC Davis has seen an increase in cash flow and a decrease in days in accounts receivable since the project, Frankel said. “We’re definitely surpassing collections over last year.” “Huron’s solution allows my staff to get things right the first time. There’s much less churning of the same accounts. In that sense, it is both cost-saving and revenue-enhancing,” Frankel added. POWERFUL REPORTING CAPABILITIES The upgraded Huron tools have transformed UC Davis’ reporting, according to Kelly McMillian, Manager of Financial Clearance and Hospital Access Services. “The capability we achieved through the renewal is magnificent,” she said. “We can look at up-to-the-minute reports on productivity and accounts by individual, team, week, and 13-week average,” McMillian continued. “We have quality review and denials reporting, and we’re able to create reports of our own in the system. The capabilities are very powerful. As a manager, it’s almost like being a kid in a candy store.” “[Huron was] receptive to the concerns of staff and management – they truly listened. That’s different from other consultants. And they provided training to make sure everyone got it. I would work with them again on any project.” Kelly McMillian, Manager of Financial Clearance and Hospital Access Services Lana Fee, Manager for Technical Insurance Services, said their new reporting capabilities lead to more precise and effective management. “Previously, I relied on reports produced by analysts who accessed our main patient accounting system. It wasn’t something my supervisors or I could do. Now we can set our own parameters and run our own reports. I can log in anytime and see exactly where we are and when a specific representative last touched an account.” At the UCD Medical Group, Jack Porter, Manager of Professional Billing Group, said the reporting capabilities have allowed the group to track trends and respond more quickly. “In the past, if an insurer challenged a billed claim and we needed additional information from the physician’s office, we had to request information by phone or fax from the physician’s office,” Porter said. “Now it’s all automated. It’s increased efficiency and accountability, which in turn improves the bottom line.” EXCEEDING STAFF PRODUCTIVITY GOALS The updated workflow processes and increased accountability have made staff members much more efficient in their work, while producing significantly improved results. “Almost as soon as the project was under way, we started exceeding the productivity standards we put in place,” said McMillian. “My staff is meeting or exceeding every single goal in every category. It’s definitely helped our numbers.” The upgraded processes and tools have helped staff work more efficiently, according to Fee. “They now see immediate results for what they do, and they really like that.” WHAT SETS HURON APART COLLABORATIVE, HANDS-ON APPROACH The Huron team’s collaborative, hands-on approach was one of the keys to the project’s success, according to UCD executives. “A lot of consultants will come in and tell you what’s wrong with your accounts receivables. Huron works with you to fix what’s wrong, and to improve what’s already working,” Frankel said. “They did most of the heavy lifting for us.” “We worked together,” said McMillian. “They were receptive to the concerns of staff and management – they truly listened. That’s different from other consultants. And they provided training to make sure everyone got it. I would work with them again on any project.” Terri Van Bibber, Manager of Billing Systems Support, agreed. “There’s a lot of follow-up to make sure everything is working. They don’t just come in, give you a solution, and leave. They work side-by-side with you so that you actually feel Huron is a business partner.” “I expected that we would end up with something pretty fantastic,” said Fee, “and it’s been a complete success.” UC Davis Medical Center ACHIEVING SUSTAINABILITY BY ESTABLISHING A HIGH-PERFORMANCE WORK CULTURE Huron Healthcare’s commitment to results and their ability to foster a high-performance work culture creates sustainable results that clients can maintain long after a project ends. “We were still adhering to the principles of the first engagement in the 1990s,” said Fee. The renewal makes the results even more sustainable, she added. Ruth Baldwin, Manager of Patient Billing Customer Service, agreed. “The renewal and the new tools help us meet our mission. They’re going to be around for a long time.” Frankel believes Huron Healthcare brings significant value to their clients. “Huron leaves you with something you can count on to be successful, now and in the future, because they help you create a much better-run organization,” she said. “I wouldn’t want to work in a place that didn’t work with Huron,” she added. “The Solution Renewal was built around the core system Huron started 15 years ago. We’ve taken our performance to the next level — and we’ll continue to improve.” Talking to our clients is the single most important step you can take in evaluating the unparalleled strengths of our solutions and results. We are happy to provide contact information for you to speak directly with our client executives. 1-866-229-8700 | huronconsultinggroup.com © 2012 Huron Consulting Group Inc. All Rights Reserved. v 20Apr12 “Huron leaves you with something you can count on to be successful, now and in the future, because they help you create a much better-run organization.” Ann Frankel, Assistant Director of Finance, UCDHS Revenue Cycle Director