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Agile organizations are likely to be decentralized and nonhierarchical. They tend to empower operating units and individuals. They are good at motivating the entire workforce. Above all, they are organized to act expeditiously, based on rapid decision making.
What does agile decision making look like in a healthcare organization? That depends on the specific organizational culture at work.
For almost seven years, Bellin Health in Green Bay, Wis., encompassing a 178-bed community hospital and a primary care practice, has kept to a disciplined decision-making process called the performance plan, which operates in a 120-day cycle.
Focusing energies. Each Thursday, the organization’s C-suite, vice presidents, and directors (about 20 senior people) meet together for three hours to direct and track initiatives focused around one of four primary strategies:
A document called an “energy grid” lists all Bellin departments and what each is responsible for in each initiative (see the exhibit below). Every 120 days, 150 to 200 members of Bellin’s leadership and middle management get together to go through the 20 or so current initiatives on the energy grid: What is the status? What activities are taking place? Where are the initiatives headed?
So far so good. But something is changing, says Bellin CFO Jim Dietsche. Things are speeding up, impinging on their rhythmic 120-day process.
Speeding up decision making. “Our marketplace is shifting dramatically in response to competitive, regulatory, and political forces. Our normal weekly leadership meetings still review and report on project status but now, in addition, there may be external developments that we need to make decisions about and start moving on right away.”
A good example of an opportunity that arose quickly and was fast-tracked was an invitation to become a Medicare Pioneer Accountable Care Organization along with ThedaCare, another independent organization in the area. The two organizations had worked together in the past, but this would mean forming a new, clinically integrated entity—called Bellin ThedaCare Healthcare Providers—and sharing savings and risks for the first time.
It would also mean making quick strategic decisions at the highest level. The Center for Medicare & Medicaid Innovation approached the hospitals in April 2012; the application to participate was due in August. In between, both ThedaCare and Bellin had to approve the initiative and win support from their physicians.
Decision making was accelerated, says Dietsche, through a strategic planning group of physicians and system administrators from both systems. Once again, the normal, step-wise process of gathering, analyzing, and presenting data would not be adequate. “Instead, we were flowing through and analyzing the data together at the same time to make an informed decision on the fly, as it were. We brought in an outside consultant to assist in the financial analysis, and we worked together to communicate the recommendation to independent physicians and, ultimately, to our respective governing boards.”
Defining owners. Another aspect of decision making that is changing at Bellin is that each project now has an executive sponsor with sharply defined responsibilities. In the past, says Dietsche, there might be several leaders working on one project, which led to a lot of finger-pointing when something wasn’t going well. The organization is still very group-oriented, but now someone owns both the highs and lows of each initiative and is held accountable at all points.
“So when rapid decision making is required to get a project back on track, typically people rally around that individual.”
The thing is, there are only so many individuals and so many resources available to support them. Instead of having perhaps one major item on their agendas, executives now may have four or five such projects that could significantly affect Bellin’s future, Dietsche says. While some initiatives extend over several cycles, the hospital works hard to avoid project creep or scope creep.
“The speed and volume of events today clearly challenges your human resources. It’s important to be sure we’re not moving so fast that we miss something or make an error. Because, even if we use consultants or advisors, we still have to sit down at the end of the day and make the decisions ourselves.”
In June 2012, Shawn Steffen, revenue cycle director of Mercy Medical Center, Cedar Rapids, Iowa, identified sluggish accounts receivable in both hospice and home health as a drag on the organization’s attempt to optimize cash flow. In many hospitals, the CFO would be the driver of a solution and, indeed, this might have happened at Mercy five years ago, or even two years ago. But the Lean process improvement training that Steffen has received prepared him to address the situation without CFO involvement.
Designing a new structure. In spring 2012, a new cross-disciplinary committee structure was put in place at Mercy, designed to align performance improvement efforts with the hospital’s five strategic pillars:
Each of these strategic pillars has a steering committee assigned to it. These steering committees oversee a number of councils that handle specific areas. For instance, the Organizational Excellence Steering Committee oversees five councils on compliance, accreditation, environment of care, IT, and maximizing resources (see the exhibit below). Each of these councils, in turn, has a number of committees that focus on specific topics.
Accordingly, the accounts receivable initiative was assigned to the Revenue Cycle Committee (which rolls up to the Maximize Resources Council, which is under the Organizational Excellence Steering Committee).
“For many matters,” says Karna Colberg-Swenson, Mercy’s director of continuous improvement, “we’ve pushed approval down so the committee has the ability to say ‘Yes, go research that’ or ‘Go do that event.’ Executives still make decisions—but they can delegate and rely on staff to make more of them.”
Teaching everyone PDCA. Colberg-Swenson sat down with employees on the Revenue Cycle Committee to conduct a root-cause analysis, using Lean tools to map the accounts receivable process, identify performance metrics, and determine roles and responsibilities. They found that 90 percent of the problem could be traced back to the admissions and intake process as clinicians are entering patient data, assigning service levels, and initiating treatment.
“It was an eye-opener,” says Colberg-Swenson. “Bills were not flying through because they too often had wrong information: in-home service instead of long-term care facility service, intermittent instead of continuous care, Medicaid instead of Medicare. Nurses and billers had not fully realized their effect on each other and on the success of the process as a whole.”
Mercy coaches employees, as the experts in their own jobs, to be able to understand and improve front-line processes. The health system has trained employees in the Plan-Do-Check-Act (PDCA) improvement cycle and empowered them to serve on an equal footing with supervisors, managers, and executives on each committee. This is an effective way, says Colberg-Swenson, to ensure that there isn’t a disconnect between leadership and what’s actually happening on the ground with patients.
In the case of the poorly performing accounts receivable, clinician and biller teams co-developed and implemented the process improvements, which included a regular joint review of patient status changes and a change in the sequence of accounts receivable steps. In six weeks, accounts receivable for home care and hospice improved by 57 percent, pouring millions of dollars back into Mercy’s cash flow.
Encouraging participation. In addition to making decision making more participatory, Mercy Medical Center’s new committee structure gives it the discipline, predictability—and often speed—that was missing when the traditional chain of command governed such matters exclusively. The whole organization knows how the structure works: what committees deal with what areas and which councils they roll up to. Perhaps most important, staff and employees know where and when decisions will take place.
“I know what committee to bring my ideas to,” says Colberg-Swenson. “I know when it meets, I know who’s leading it, and I know when I will have a decision or who is reviewing the performance metrics. If it’s a matter of some depth and breadth, perhaps affecting multiple departments, I know the decision will roll up to the steering committee. There again, I know when the steering committee meets, I know when I’m on its agenda, and I know when I’ll get a thumbs-up or thumbs-down.
The committee structure is intended to create an environment of trust and accountability. “But it is a change for executives as well as for front-line employees not accustomed to sharing decision-making authority,” says Colberg-Swenson. “So we needed to orient people at every level to working together in groups this way to solve their problems where they occur.”
In the Northwest, PeaceHealth has a long legacy of being a consensus-driven organization, says Carol Aaron, senior vice president, culture and people. “One of our core values is collaboration, and we are always trying to make sure that we have maximum input and involvement in key decisions. Having said that, we recognized that, with the rapid rate of change in health care these days, we would need to make decisions in a more nimble way than in the past.”
Consolidating decision making. Toward that end, the eight-hospital system is in the process of adopting a more centralized, consultative decision-making model that stresses accountability and clarity of roles:
In the past, says Aaron, PeaceHealth’s different work teams would have operated in silos—for example, one on preparation for ICD-10, another for computerized provider order entry, and still another for the implementation of an EHR in the ambulatory setting in 2013. “Instead, we are building an office of change with portfolio oversight for transformational and large-scale system initiatives, replacing multiple large clinical initiatives at both the system and hospital levels. This new, centralized management model emphasizes integration of people, finance, and technology resources.”
This integration of functional leadership reflects the reorganization of PeaceHealth itself into three community-based networks of care, each accountable for coordinating care across multiple communities, as well as the system’s shift in focus from acute care towards community partnerships (see the exhibit below).
Loss of control. One of the biggest challenges of this structural change, says Aaron, is coming to grips with the loss of control felt by leaders of hospitals and services—including Aaron’s own. For example, in an effort to hold down costs and strengthen the system’s culture of wellness, PeaceHealth needed to change its employee health benefits.
“In the past, each hospital had a traditional human resources department that would assess local needs and budgets and act accordingly. It could easily have taken years for each CEO and human resources vice president to weigh in and help design a plan. Now we were able to put together a centralized benefits team within the Center of Expertise for Rewards (which encompasses health, wellness, and compensation practices) to assess best practices within and outside of PeaceHealth, identify ways to leverage those practices, design and finalize a benefits plan, and go through the approval process—in an unprecedented six months.”
This shift in approach was scary at first, and the health system is still in the learning phase. There is a trust element, says Aaron: “People wonder, ‘If I let this go, will somebody pick it up—and what happens if they don’t?
Now that they have had some success, Aaron says, “the systemwide teams are starting to take a lot of pride in the value they’re giving back to the organization—in ways the individuals never could have done when each site was working alone. And they appreciate the opportunity to grow, develop new skill sets, and take advantage of lots of new learning and development avenues.”
It may seem counterintuitive that enhanced collaboration—bringing more people into the process and requiring them to come to consensus—can contribute to more timely and more effective decision making. But Mercy Medical Center has shown that it does, as long as there is a sure-footed process and a sturdy structure underpinning efforts to meet clearly stated goals.
At Bellin, on the other hand, speeding up decision making has required a loosening of a highly structured process. Leaders are acting on several fronts simultaneously rather than sequentially, and making room for issues that can appear on the horizon with the suddenness of squalls.
And PeaceHealth is finding that centralizing organizational structures and decision making processes is bringing new clarity, accountability, and speed to major initiatives.
In all three cases, hospitals and health systems are demonstrating the benefits of agility in seizing opportunities to improve their financial and competitive positions within their communities.
Lauren Phillips is president, Phillips Medical Writers, Ltd. (email@example.com). Interviewed for this article (in order of appearance): Jim Dietsche, CFO, Bellin Health, Green Bay, Wis. (firstname.lastname@example.org). Karna Colberg-Swenson, director of continuous improvement for Mercy Medical Center in Cedar Rapids, Ia. (email@example.com). Carol Aaron, senior vice president for culture and people, PeaceHealth, Seattle (firstname.lastname@example.org).
Grant Thornton: Facilitating EAM
Priority Advantage: Helping Organizations Optimize Their Medicare Advantage Plans
6 Patient Revenue Cycle Metrics You Should Be Tracking (and How to Improve Your Results)
Patient financial engagement is more challenging than ever – and more critical. With patient responsibility as a percentage of revenue on the rise, providers have seen their billing-related costs and accounts receivable levels increase. If increasing collection yield and reducing costs are a priority for your organization, the metrics outlined in this presentation will provide the framework you need to understand what’s working and what’s not, in order to guide your overall patient financial engagement initiatives and optimize results.
10 Ways to Reduce Patient Statement Volume (and Reduce Costs)
No two patients are the same. Each has a very personal healthcare experience, and each has distinct financial needs and preferences that have an impact on how, when and if they chose to pay their healthcare bill. It’s no longer effective to apply static billing techniques to solve the complex challenge of collecting balances from patients. The need to tailor financial conversations and payment options to individual needs and preferences is critical. This presentation provides 10 recommendations that will not only help you improve payment performance through a more tailored approach, but take control of rising collection costs.
Reduce Patient Balances Sent to Collection Agencies: Approaching New Problems with New Approaches
This white paper, written by Apex Vice President of Solutions and Services, Carrie Romandine, discusses the importance of patient segmentation and messaging specifically related to the patient revenue cycle. Applying strategic messaging that is tailored to each patient type will not only better educate consumers on payment options specific to their billing needs, but it will maximize the amount collected before sending to collections. Further, targeted messaging should be applied across all points of patient interaction (i.e. point of service, customer service, patient statements) and analyzed regularly for maximized results.
The Future of Online Patient Billing Portals
This white paper, written by Apex President Patrick Maurer, discusses methods to increase patient adoption of online payments. Providers are now seeking ways to incrementally collect more payments due from patients as well as speeding up the rate of collections. This white paper shows why patient-centric approaches to online payment portals are important complements to traditional provider-centric approaches.
Payment Portals Can Improve Self-Pay Collections and Support Meaningful Use
Increased electronic engagement between healthcare providers and patients provides significant opportunities for improving revenue cycle metrics and encouraging patients to access EHRs. This article, written by Apex Founder and CEO Brian Kueppers, explores a number of strategies to create synergy between patient billing, online payment portals and electronic health record (EHR) software to realize a high ROI in speed to payment, patient satisfaction and portal adoption for meaningful use.
Large Health System Drives 10% UP (Patient Payments) and 10% DOWN (Billing-related Costs)
Faced with a rising tide of bad debt, a large Southeastern healthcare system was seeing a sharp decline in net patient revenues. The need to improve collections was dire. By integrating critical tools and processes, the health system was able to increase online payments and improve its financial position. Taking a holistic approach increased overall collection yield by 10% while costs came down because the number of statements sent to patients fell by 10%, which equated to a $1.3M annualized improvement in patient cash over a six-month period. This case study explains how.
ICD-10: Managing Performance
With the ICD10 deadline quickly approaching and daily responsibilities not slowing down, final preparations for October 1 require strategic prioritization and laser focus.
Clarity Drives Collections
Read how Gwinnett Medical Center provides clear connections to financial information, offers multiple payment options for patients, and gives onsite staff the ability to collect payments at multiple points throughout the care process.
Orlando Health Gains Insight into Denials, Reduces A/R Days with RelayAnalytics Acuity
Read how Orlando Health was able to perform deeper dives into claims data to help the health system see claim rejections more quickly–even on the front end–and reduce A/R days.
Revenue Cycle Payment Clarity
To maintain fiscal fitness and boost patient satisfaction and loyalty, healthcare providers need visibility into when and how much they will be paid–by whom–and the ability to better navigate obstacles to payment. They need payment clarity. This whitepaper illuminates this concept that is winning fans at forward-thinking hospitals.
Streamlining the Patient Billing Process
Financial services staff are always looking for ways to improve the verification, billing and collections processes, and Munson Healthcare is no different. Read about how they streamlined the billing process to produce cleaner bills on the front end and helped financial services staff collect more than $1 million in additional upfront annual revenue in one year.
Wallace Thomson Hospital Automates to Maximize Limited Resources
Effective revenue cycle management can be a challenge for any hospital, but for smaller providers it is even tougher. Read how Wallace Thomson identified unreimbursed procedures, streamlined claims management, and improved its ability to determine charity eligibility.
7 Steps for Building and Funding Sustainability Projects
Before launching an energy-efficiency initiative, it’s important to build a solid business case and understand the funding options and potential incentives that are available. Healthcare leaders should consider taking the steps outlined in the whitepaper to ease the process of gaining approval, piloting, implementing, and supporting sustainability projects. You will find that investing in sustainability and energy efficiency helps hospitals add cash to their bottom line. Discover how hospitals and health systems have various options for funding energy-efficient and renewable-energy initiatives, depending on their current financial structure and strategy.
Key Capital Considerations for Mergers and Acquisitions
Health care is a dynamic mergers and acquisitions market with numerous hospitals and health systems contemplating or pursuing formal arrangements with other entities. These relationships often pose a strategic benefit, such as enhancing competencies across the continuum, facilitating economies of scale, or giving the participants a competitive advantage in a crowded market. Underpinning any profitable acquisition is a robust capital planning strategy that ensures an organization reserves sufficient funds and efficiently onboards partners that advance the enterprise mission and values.
Key Capital Considerations for Mergers and Acquisitions
The success of healthcare mergers, acquisitions, and other affiliations is predicated in part on available capital, and the need for and sources of funding are considerations present throughout the partnering process, from choosing a partner to evaluating an arrangement’s capital needs to selecting an integration model to finding the right money source to finance the deal. This whitepaper offers several strategies that health system leaders have used to assess and manage capital needs for their growing networks.
Trend Watch: Providers adapt as value-based care moves from hype to reality
Announcements from several commercial payers and the Centers for Medicare and Medicaid Services (CMS) early in 2015 around increased efforts to form value-based contracts with providers seemed to point to an impending rise in risk-based contracting. Rather than wait for disruption from the outside in, health care providers are now making inroads on collaborating with payers on various risk-based contracting models to increase the value of health care from within.
Yuma Regional Medical Center case study
Yuma Regional Medical Center (YRMC) is a not-for-profit hospital serving a population of roughly 200,000 in Yuma and the surrounding communities.
Before becoming a ZirMed client, Yuma was attempting to manually monitor hundreds of thousands of charges which led to significant charge capture leakage. Learn how Yuma & ZirMed worked together to address underlying collections issues at the front end, thus increasing Yuma’s overall bottom line.
Reforming with a New 50-Bed Acute Care Facility
Kindred Hospital Rehabilitation Services works with partners to audit the market and the facility’s role in that market to identify opportunities for improvement. This approach leads to successes; Kindred’s clinical rehab and management expertise complements our partners’ strengths. Every facility and challenge is unique, and requires a full objective analysis.
5-Minute Briefing on Revenue Integrity Through HIM WhitePaper Hospitals FS
As the critical link between patient care and reimbursement, health information enables more complete and accurate revenue capture. This 5-Minute White Paper Briefing shares how to achieve cost-effective revenue integrity by your optimizing HIM systems.
5-Minute Briefing on Accelerating Cash Flow Through HIM WhitePaper Hospitals FS
Speedier cash flow starts with better CDI and coding. This 5-Minute White Paper Briefing explains how providers can improve vital measures of technical and business performance to accelerate cash flow.
5-Minute Briefing on Reducing the Cost of RCM WhitePaper Hospitals FS
Qualified coders are getting harder to come by, and even the most seasoned professional can struggle with the complexity of ICD-10. This 5-Minute White Paper Briefing explains how partnerships can help improve coding and other key RCM operations potentially at a cost savings.
Providers Focus Too Much On Revenue Cycle Management
The point of managing your revenue cycle isn’t just to improve revenue and cash flow. It’s to do those things effectively by consistently following best practices— while spending as little time, money, and energy on them as possible.
Lucille Packard Children’s Hospital Stanford Case Study
How Lucile Packard Children’s Hospital Stanford increased payments received within 45 days by 20% and reduced paper submission claims by 70% by using ZirMed solutions.
Using Predictive Modeling To Detect Meaningful Correlations Across Claims Denials Data
The reasons claims are denied are so varied that managing denials can feel like chasing a thousand different tails. This situation is not surprising given that a hypothetical denial rate of just 5 percent translates to tens of thousands of denied claims per year for large hospitals—where real‐world denial rates often range from 12 to 22 percent. Read about how predictive modeling can detect meaningful correlations across claims denials data.
ZOLL and Emergency Mobile Health Care Case Study
Emergency Mobile Health Care (EMHC) was founded to be and remains an exclusively locally owned and operated emergency medical service organization; today EMHC serves a population of more than a million people in and around Memphis, answering 75,000 calls each year.
Maximizing Medicare Reimbursements White Paper
Since the Physician Quality Reporting Initiative (PQRI) introduction, CMS has paid more than $100 million in bonus payments to participants. However, these bonuses ended in 2015; providers who successfully meet the reporting requirements in 2016 will avoid the 2% negative payment adjustment in 2018, so now is the time to act! Included in this whitepaper are implications of increasing patient responsibility, collections best practices, and collections and internal control solutions.
Denials Deconstructed: Getting Your Claims Paid
Getting paid what your physician deserves—that’s the goal of every biller. Yet even for the best billers, achieving that success can be elusive when denials stand in the way of success, presenting challenges at every turn. Denials aren’t going away, but you can learn techniques to manage and even prevent them.Join practice management expert Elizabeth W. Woodcock, MBA, FACMPE, CPC, to: Discover methods to translate denial data into business intelligence to improve your bottom line, determine staff productivity benchmarks for billers, and recognize common mistakes in denial management.
Automation and Operational Improvement Drive Sustainable Results
Physician practices must improve organizational efficiency to compete in this era of reduced reimbursement and escalating administrative costs.
Revenue Cycle Management Resolves Migration Implementation Issues
Many healthcare organizations are pursuing next-generation health information systems solutions. Learn more about Navigant's work with University of Michigan Health System.
Partnering For Success – Provider Achieves Strength in Stability
The proper implementation of healthcare information technology systems is crucial to an organization’s financial health.
Building a Clinically-Integrated Network
As value-based payment models evolve, providers are challenged to maintain superior clinical outcomes while controlling costs.
Winning in the Post-Acute Marketplace
Read more about factors contributing to the changes in the post-acute marketplace and what it means for manufacturers, physicians, clinicians, patients, and post-acute facilities as they anticipate the transition to the second curve.
Building A Common Vision with Employed Physicians
HSG helped the physicians and executives of St. Claire Regional in Morehead, Kentucky, define their shared vision for how the group would evolve over the next decade. As well as, develop the strategic and operational priorities which refocused and accelerated the group’s evolution.
Practice Performance Improvement
The client was a nine-hospital health system with 14 clinics serving communities in a multi-state market with very limited access to care, poor economic conditions, high unemployment, and a heavy Medicare/Medicaid/uninsured payer mix. In most of these communities, the system was the sole source of care.
Though the clinics were of substantial size (they employed 98 physicians) and comprised of multiple specialists, the physicians functioned as individuals and the practices lacked any real group culture.
Clinical Integration Without Spending a Fortune
Clinical integration can be expensive, but it doesn’t have to be, as this four-step road map for developing a CIN proves. Does it have to cost millions to initiate a clinical integration strategy?
Contrary to popular belief, we have clients who have generated substantial shared savings and a significant ROI over time, without massive investments. Yes, some financial capital is required for resources the CIN providers can’t bring to the table themselves. But the size of that investment can be miniscule relative to the value it produces: improved outcomes and documentation for payers.
Adding Value to Physician Compensation
Today’s concerns about physician compensation are the result of the changing healthcare environment. The transition to value is slow, but finally becoming a reality. Proactive hospitals want to ensure that provider incentives are properly aligned with ever-increasing value-based demands.
This report focuses on the three big questions HSG receives about adding value to physician compensation; Why are organizations redesigning their provider compensation plans? What elements and parameters must be part of successful compensation plans? How are organizations implementing compensation changes?
Effective Revenue Cycle Management in Your Network
Revenue Cycle Management has become an even more complex issue with declining reimbursements, implementation of Electronic Health Records, evolving local carrier determinations (LCD), and payer credentialing [The emphasis on healthcare fraud, abuse and compliance has increased the importance of accuracy of data reporting and claims filing).
The efficiency of a medical practice’s billing operations has critical impact on the financial performance. In many cases, patient billings are the primary revenue source that pays staff salaries, provider compensation and overhead operating cost. Inefficiencies or inaccurate billing will contribute to operating losses.
Succeeding in Value-Based Care
This publication identifies and outlines the necessary characteristics of a fully-functioning clinically integrated network (CIN). What it doesn’t do is detail how hospitals and providers can participate in the value-based care environment during the development process.
One common misconception is that the CIN can’t do anything significant until it has obtained the FTC’s “clinically integrated” stamp of approval. While the network must satisfy the FTC’s definition of clinical integration before single signature contracting for FFS rates and contracts can legally start, hospitals and providers can enjoy three key benefits during the development process.
Therapy: Benefits at All Levels of Care
Nearly half of all Medicare beneficiaries treated in the hospital will need post-acute care services after discharge. For these patients, a stay in an inpatient rehabilitation facility, skilled nursing facility or other post-acute care setting comes between hospital and home.
Does Your Budgeting Process Lack Accountability?
With the proper process, tools, and feedback mechanisms in place, budgeting can be a valuable exercise for organizations while helping hold organizational leaders accountable. Having a proper monthly variance review process is one of the most critical factors in creating a more efficient and accurate budget. Monthly variance reporting puts parameters around what is to be expected during the upcoming budget entry process.
Cost Accounting: the Key to Cost Management and Profitability
Managing the cost of patient care is the top strategic priority of most hospital CFOs today. As healthcare shifts to more data-driven decision making, having clear visibility into key volume, cost and profitability measures across clinical service lines is becoming increasingly important for both long-range and tactical planning activities. In turn, the cost accounting function in healthcare provider organizations is becoming an increasingly important and strategic function. This whitepaper includes five strategies for efficient and accurate cost accounting and service line analytics and keys to overcoming the associated challenges.