IRVING, Texas, July 28 /PRNewswire/ -- Increasing supply costs, rising
capital needs and declining reimbursements constantly keep hospital executives
awake at night. To help its member hospitals, VHA Inc., the health care
alliance, uses a formula that links its expertise in revenue cycle management
with its clinical improvement capabilities and long-standing experience in
supply chain management. In just 12 months, VHA has helped
20 member health care organizations identify or implement improvement
opportunities that could yield an additional $100 million in revenue and many
times that amount in cost savings.
"Bringing all of VHA's competencies to bear on a member's circumstances
can have an enormous impact on a health care organization's bottom line," said
Jim Martin, VHA's senior director of revenue management consulting.
Martin says that VHA's ability to connect clinical improvement initiatives
that reduce costs, such as efforts to reduce inpatient infection rates, with
efforts to improve operating margins through the effective utilization of
high-cost physician preference supplies, while maximizing reimbursement for
these items, creates an effective, comprehensive, long-term approach to
financial improvement for health care organizations.
"There are many levers a hospital can pull to increase revenue and improve
its cost situation," said Martin. "Linking expensive supply purchases and
their utilization by managing and monitoring the item master/charge master
file can help members ensure accurate reimbursement and enable them to
negotiate carve-out reimbursements for high-cost physician preference items.
VHA provides members with access to services that enable them to better manage
VHA provides members with guidance on other vital revenue cycle functions,
including: optimal procedure pricing; business office enhancement; and front
end optimization, including capturing accurate demographic and insurance
information, as well as collecting co-payments and deductibles. VHA has also
implemented cash acceleration projects and developed a front-end technology
tool that aids in the advanced beneficiary/medical necessity notification
process. VHA member organizations are currently piloting the tool.
VHA's Revenue Management Services group has provided ever-increasing value
to member organizations since Martin started the practice in early 2003. More
than 150 VHA clinicians and financial experts are available to help member
organizations. The projects have resulted in significant improvements in
members' bottom lines.
For example, a recent optimal pricing engagement at Norman (Okla.)
Regional Hospital resulted in a potential net income improvement of more than
$4.9 million. "By working with VHA, we developed more appropriate pricing
strategies to offset the expenses we were incurring, and developed a revenue
model that protected our long-term future in the community," said Melvin
Alexander, chief financial officer at Norman Regional.
At other health care organizations, the revenue management team has
completed comparative measurement benchmarking studies, allowing members to
share best practices, and assisted with improving health information
management, denials management, and revenue cycle improvement for small
VHA Inc. is a national cooperative of leading not-for-profit health care
organizations that work together to improve the health of the communities they
serve. VHA leverages the collective strength of the membership to improve
clinical, operational and financial performance. Through the VHA cooperative,
members benefit from resources that assess critical needs and identify best
practices to create customized solutions that lower costs and improve clinical
quality. As a cooperative, VHA distributes income annually to members based
on their participation. Based in Irving, Texas, with 18 offices across the
U.S., VHA was named one of the "100 Best Companies to Work For" by Fortune in
January 2004, for the fifth year in a row. For more information, go to
SOURCE VHA Inc.