Revenue Cycle Check-Up

Often, the Revenue Cycle is viewed as one of the most important yet most opaque set of processes within a healthcare organization.  Prior to the acquisition by a sponsor – the Revenue Cycle seems to be going ok, cash is being collected, bad debt and DSO seem reasonable, and no one considers it a strategic risk for the business.

Post-acquisition results in a different story. DSO and bad debt start to creep up, cash is not being generated at the pace expected, there is department turnover resulting in knowledge loss, and management often isn’t close enough to understand what is going on. These are the times that we often suggest the sponsor consider a revenue cycle check-up.

A thorough check-up can improve revenue capture, reduce denials, and ultimately improve your organization's financial outlook.

At Allenhurst Advisors, our typical Revenue Cycle Check-up Includes the following:

Process Mapping and SWOT Analysis – ensuring all key processes and sub-processes are documented and understood by all key stakeholders.

Review of Daily Charges and Payor mix – Creating an understanding of whether charges are being worked timely and if provider relationships are being managed to increase profitability

Metric Collection and Benchmarking – Collecting and comparing all key revenue cycle metrics to standard benchmarks to identify areas of opportunity (establishing a KPI process).

Cash Velocity and Acceleration – Determining how quickly the organization collects cash and identification of improvement opportunities

Bad Debt – Documenting Bad Debt practices and identification of potential improvement areas.

A thorough check-up can improve revenue capture, reduce denials, and ultimately improve your organization's financial outlook.

To find out more about how Allenhurst Advisors can help drive value in sponsor-backed assets, please visit us at www.allenhurstadvisors.com or reach out to us info@allenhurstadvisors.com