Hexaware Masters Accounts Receivable Follow-up Challenges and Elevates Revenue Cycles for a Leading Hospital Billing Company  Hexaware Masters Accounts Receivable Follow-up Challenges and Elevates Revenue Cycles for a Leading Hospital Billing Company 

Hexaware Masters Accounts Receivable Follow-up Challenges and Elevates Revenue Cycles for a Leading Hospital Billing Company 

Reducing DSO by 50% and Boosting Collections

Client

Our client is an analytics-driven company and a world-class service provider. It provides revenue cycle services, processing millions of transactions every day for 86+ hospitals across 15 states in the United States.   

Challenge

For a major player in the field of hospital billing, optimizing Accounts Receivable (AR) follow-up and collections is imperative to ensure financial stability. 

Our client faced several critical challenges in AR that necessitated a strategic transformation: 

  • Low Balance AR Follow-up for Hospitals: The client grappled with effectively managing low balance AR follow-up for hospitals, leading to a growing backlog. 
  • Complex AR Follow-up for Physician Services: With little experience in physician billing services, the client had to navigate complex AR follow-up for physician services. 
  • High Volume of Account Closures and Clerical Requests: A substantial workload was attributed to account closures and clerical requests, adding to the operational strain. 

What the client wanted: 

  • Handle AR Follow-up for Providers: Given the client’s limited experience in physician billing, the primary focus was on AR follow-up for providers. 
  • Resolve Backlog: The aim was to resolve the backlog of AR follow-up effectively and efficiently. 
  • Reduce AR Balances in >180+ Days Bucket: The client expected a substantial reduction in AR balances in the >180+ days bucket within a short three-month period. 
  • Go live faster: There was a pressing need for rapid implementation setup and a quicker go-live ramp-up of AR operations. 

Solution

To address these challenges, Hexaware used technologies, such as a fully automated AR management tool, issue log tracker, and document repository to devise a multifaceted solution:  

  • AR Segmentation: AR was segregated into aged and new categories, allowing for the mapping of reimbursement timelines and the identification of trends with various carriers. 
  • Specialized Knowledge Pool: A specialized knowledge pool was created to focus on AR follow-up for claims older than 90 days. 
  • Analysis: An in-depth analysis of customer and denial reasons was conducted to enhance efficiency. 
  • Implementation Plan: A comprehensive implementation plan, spanning one week of planning and technical setup, along with two weeks of knowledge transfer and training, was designed. 
  • Pilot Run: A one-week pilot run was executed with rigorous output analysis and feedback incorporation, leading to a successful go-live. 

Benefits

The implementation of this strategic approach led to substantial benefits for the client: 

  • DSO Reduced by 50% in 4 months 
  • Financial stability improved by 50% 
  • Collections on AR balances older than 180 days consistently increased by 6% monthly  
  • Productivity increased by 175%  
  • Identifying trends and patterns reduced call volumes by 60% 

 

The robust transition methodology ensured a seamless transition and go-live process, minimizing disruptions. 

Summary

A major hospital billing firm, grappling with low AR follow-up, sought transformation. Through AR segmentation, specialized knowledge pools, and innovative technology, DSO was slashed by 50% in under four months, with monthly collections surging by 6%. Enhanced productivity and efficient trend identification further boosted the revenue cycle, highlighting the power of strategic planning and technology in healthcare financial management. 

Every outcome starts with a conversation

Ready to Pursue Opportunity?

Connect Now

right arrow

ready_to_pursue
Ready to Pursue Opportunity?

Every outcome starts with a conversation