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Cutting-Edge Technology Rescues Small Balance Accounts By 30 Percent

 

Published on BeckersHospitalReview.com Monday June 26, 2023

 

Small balance revenue recoveries have emerged as a critical solution for healthcare organizations grappling with the challenges of uncollected accounts receivable (AR).

With rising costs and limited resources, hospitals and healthcare providers often face the difficult decision of either abandoning revenue tied up in small balance accounts or expending significant efforts and administrative costs to recoup them. However, innovative solutions like CorroHealth’s REVIVE platform are transforming the process with an effective path to reclaiming valuable revenue.

CorroHealth, a trusted leader in healthcare revenue recovery, understands healthcare organizations’ challenges in managing small balance accounts. Their advanced technology, analytics, and expertise provide a comprehensive automated solution that allows hospitals to address small balance accounts effectively. By partnering with CorroHealth, hospitals can leverage their expertise and technology to maximize returns without overwhelming existing billing staff.

Small balance AR accounts for a mere one to five percent of revenue, yet, they can consume a significant portion of an organization’s AR department’s workload—55 to 60 percent. These accounts typically remain unworked, and the root causes of delays are left unaddressed due to limited staff availability. As a result, hospitals risk losing revenue that could be collected with the right approach and support.

Jon Guiliani, Senior Vice President Revenue Cycle Management at CorroHealth, emphasizes the impact of small balance revenue recoveries on financial health: “Small balance accounts may seem insignificant individually, but collectively, they represent a substantial amount of revenue that healthcare organizations often overlook. By implementing an efficient and automated system like CorroHealth’s, hospitals can significantly improve their financial performance and enhance the quality of care they provide.”

The financial challenges faced by hospitals are staggering. Annually, hospitals face initial denials of approximately $270 billion in claims, leading to high administrative costs of over $9 billion. Even more alarming is that more than 65 percent of these denials are never reworked, even though over 90 percent of them could have been prevented in the first place.

In addition to these challenges, healthcare organizations struggle to find, train and retain affordable staff to manage small balance accounts. The complexity of the task can be daunting, with over 3,500 possible combinations of codes that may need to be addressed.

The CorroHealth REVIVE platform integrates seamlessly with a client’s existing electronic medical records (EMR) system. Through proprietary technology and automated decision-making, CorroHealth’s team identifies root causes of delays and applies customized workflows to resolve them. By automating tasks such as claim notation, data gathering, and payer behavior analysis, CorroHealth streamlines revenue recovery, saving time and reducing administrative costs. CorroHealth consistently boosts clients’ collections by over 30 percent, lowering costs by 30 percent and decreasing AR days by 25 percent.

Jon Guiliani, Senior Vice President Revenue Cycle Management at CorroHealth, explains how their solution simplifies the recovery process: “Our platform combines robotic process automation, machine learning, a robust process flow system, and advanced analytics to optimize small balance claim resolution. By automating repetitive tasks and providing consistent guidance, healthcare organizations can recoup revenue efficiently and redirect their resources to areas that truly matter.”

CorroHealth’s successful partnership with a non-profit hospital demonstrates the tangible impact of its small balance revenue recovery approach. Facing a backlog of aged accounts left by a previous vendor, the hospital turned to CorroHealth for assistance. By acting as an extension of the hospital’s team, CorroHealth identified the root causes of delays and provided data-driven recommendations to improve its revenue cycle processes.

Over the course of a decade, CorroHealth helped the hospital recover a staggering $116 million in aged small balance accounts. Through the implementation of their technology-enabled solutions, the hospital achieved a 100 percent resolution rate on assigned claims, decreased the average account balance by 45 percent, and significantly reduced the number of aged accounts.

Small balance revenue recoveries substantially impact the financial well-being of healthcare organizations. However, hospitals can strengthen their revenue streams by effectively addressing these accounts, enhancing patient care, and strategically allocating resources.

As the healthcare industry evolves, CorroHealth remains committed to empowering healthcare organizations to overcome financial challenges and achieve sustainable success. Their innovative solutions, combined with advanced technology and industry expertise, position them as a trusted partner in navigating the complex landscape of revenue recovery.

About CorroHealth: CorroHealth is the leading provider of clinically led healthcare analytics and technology-driven solutions dedicated to positively impacting the financial performance of hospitals and health systems. With over 8,500 employees worldwide, CorroHealth delivers integrated solutions, proven expertise, intelligent technology, and scalability to address needs across the entire revenue cycle.

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CorroHealth is the leading provider of clinically led healthcare analytics and technology-driven solutions dedicated to positively impacting the financial performance of hospitals and health systems. With more than 8,500 employees worldwide, CorroHealth delivers integrated solutions, proven expertise, intelligent technology, and scalability to address needs across the entire revenue cycle.

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