Leaders of a 49-bed rural hospital embarked on an initiative to proactively rebrand, with the goal of becoming a regional healthcare network. However, a more than 20% decline in inpatient volumes and a drop in days cash on hand – from 54 to 21 days – forced leadership to put the project on hold.
The hospital contracted with leading global consultancy Guidehouse to initiate an enterprisewide performance assessment and margin improvement initiative. Guidehouse set a rapid analysis in motion, across seven areas—workforce innovation, growth strategy, change management, supply chain, physician enterprise, care management, and revenue cycle.
Guidehouse revenue cycle experts quickly discovered the hospital could strengthen revenue capture and boost cash by improving the accuracy of patient classification and reducing discharged not final billed (DNFB) pending physician action to $0. The hospital adopted these steps in just the second week of its work with Guidehouse. By week three, these efforts boosted net patient revenue by 8%.
Guidehouse then set out to identify ways to achieve $32 million in operational savings in one year, a primary goal of the hospital’s leadership team. In collaboration with team members across the hospital, Guidehouse: