Innova Revenue Group recently received a distress call from a Critical Access Hospital (CAH) in California, which was teetering on the brink of financial collapse and contemplating filing for Chapter 9 bankruptcy due to severe cash-flow issues. Recognizing the gravity of the situation, Innova Revenue Group promptly dispatched a team of experts to the hospital for a comprehensive two-day on-site revenue cycle operational assessment. The primary objective of this assessment was to identify avenues for optimizing revenue generation while maintaining strict adherence to compliance standards.
The assessment focused on several key areas within the hospital’s operations, including registration and scheduling, coding, billing, the existing revenue cycle software, and case management. The goal was to scrutinize these facets of the hospital’s operations and pinpoint areas where improvements could be made to bolster revenue and achieve financial stability.
During the thorough evaluation, the experts from Innova Revenue Group unearthed significant opportunities within the charge description master (CDM) and charge capture processes, with a particular emphasis on the surgery and emergency departments (ED). The CDM, often referred to as the hospital charge master, is a sophisticated and intricate database utilized by healthcare facilities to manage the pricing structure for various medical services and procedures.
This repository serves as a centralized reference guide, meticulously cataloging the costs associated with every facet of patient care, encompassing everything from diagnostic tests and surgical procedures to accommodation rates and administrative charges. Within the CDM, detailed descriptions of each service, treatment, or supply offered by the hospital are paired with their corresponding prices. It is the linchpin of precise billing, facilitating seamless insurance claims processing and serving as an indispensable tool for financial planning within healthcare organizations.
Recognizing the budget constraints faced by the hospital, Innova Revenue Group adopted a strategic approach by conducting a manual review of the CDM. This meticulous review sought to ensure that all codes were up-to-date, essential, and aligned correctly with revenue codes. Simultaneously, the team engaged with individual hospital departments, carefully examining their “book of business” to ascertain that all relevant information was accurately reflected in their respective CDMs.
In tandem with this effort, a Revenue Optimization Committee was established to initiate discussions surrounding charge entry. It swiftly became evident that significant room for improvement existed in this area. Many charges within the older revenue cycle billing system were incompletely configured, leading to revenue leakage. Furthermore, there was a dearth of comprehensive understanding among the staff regarding the intricacies of charge capture workflows.
In response, Innova Revenue Group embarked on an intensive educational and software enhancement initiative. The goal was to empower the hospital’s staff with the knowledge and tools necessary to streamline and optimize charge capture processes.
Several months into the project, tangible and positive trends in cash collections began to emerge, offering a ray of hope in the hospital’s dire financial circumstances.
In summary, the intervention and meticulous assessment of the hospital’s operations, particularly in the realm of CDM management and charge capture processes, played a pivotal role in averting a financial crisis. Through a combination of manual review, departmental engagement, and educational initiatives, the hospital began to regain its financial footing, reaffirming the critical role that meticulous revenue management plays in the sustainability of healthcare institutions.
Many healthcare facilities have implemented processes that require clinical documentation integrity (CDI) staff to review all patients as quickly as possible to establish a working
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