Case Study Sutter Health

1913 Words8 Pages
Sutter Health’s Retooling of Accounts Receivable October 18, 2010 An increasing issue within healthcare is the inability to collect debt from the rising levels of uninsured or underinsured and patient payment obligations which have put increased pressure on hospitals to maximize up-front cash collections. Today in the United States there are nearly 47 million Americans uninsured and 80 percent of those come from working families. Hospitals incur over $60 billion dollars in bad debt annually because they typically collect only ten to twenty percent of a total uninsured patient balance after service. This is due to a number of reasons, including poor accounting practices, a lack of correct patient information and a lack of generated reports. This paper will discuss how one company, California’s Sutter Health,…show more content…
It also has a dashboard that enables managers to identify and analyze potential issues, data and trends on a daily basis from each insurance organization or staff members that allow them to faster problem resolution and increased leverage in negotiations. This program also enables managers to create detailed reports on the spot, using simple drop down menus. Once Med Assets was implemented and the staff had the tool they needed, Sutter’s A/R was reduced by six days and resulted in the collection of an additional $78 million during the first three months. Med assets software also helped the CBO detect errors in major payer’s contracted rates, which prevented thousands of dollars in potential underpayments. Training and accountability are key factors in this program’s success. Each PFS needs to be provided with various scenarios and applicable positive responses related to them. Without simple conversation tools of this nature, the PFS’ cannot run their businesses to the full
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