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Muenster Memorial Hospital

Muenster, TX

CLIENT

Muenster Memorial is an 18 bed, Critical Access Hospital located in Cooke County, TX. The Hospital offers a 24-hour emergency room, inpatient and outpatient treatment, surgery, nursing and home health services, rural health clinic, physical, occupational, and speech therapy services. Muenster Memorial employs 96 people and handles over 4,700 outpatient visits each year.

PROBLEM

With outstanding AR of $2,926,000, of which $1,179,000 was over 90 days and Gross Days in AR exceeding 117, Muenster Memorial needed help to reduce their AR. Another immediate need was to address Discharged Not Final Billed (DNFB) which had climbed to $735,000 or nearly 29 days of gross revenue. Inefficient organizational structure, a

lack of work standards, and staff training deficits also contributed to the sub-par performance.

RESOLUTION

re|solution was engaged in March 2008 to assess the revenue cycle, provide training and reduce outstanding AR. The assessment identified a variety of opportunities and re|solution consultants immediately began work on implementing improvements. At the same time, re|solution began working the aged AR to accelerate cash and minimize bad debt.

RESULTS

Based on processes implemented by re|solution’s experienced staff and use of proprietary tools; Muenster Memorial has reduced their AR over 90 days from $1,179,000 to $474,000 and is close to achieving their goal of having no more than 20% of their AR greater than 90 days. DNFB has decreased from 29 days of gross revenue to 5 days, an 83% reduction. The AR clean-up generated over $700,000 in cash collections while the DNFB reduction accelerated another $300,000 in cash for the hospital. The improved performance indicators are impressive, but more significant

are the process improvements and the knowledge transferred to Muenster Memorial’s business office staff. Muenster Memorial continues to use the tools re|solution provided for ongoing improvement and success.

“Our accounts receivable had grown to a level that was unmanageable by our staff. My options were to hire additional staff or bring in someone who knew what needed to be done, and had the expertise to get it done. Although the re/solution contract was expensive, the return on investment has been outstanding. A major benefit was to reduce the volume of accounts receivable accounts to a level that is manageable by our staff. Of course, collecting a bucket full of additional payments has been good too!”

Lynn Heller – CEO

Muenster Memorial Hospital