Revenue Cycle Venture Brings Together Guidehouse, Baptist Health South Florida

David Zito via Health Leaders Media

A joint venture by Guidehouse Healthcare and Baptist Health South Florida to improve revenue cycle management (RCM) for providers could be poised to expand throughout the Southeast.

The partnership, which builds on an existing relationship between the two organizations, will focus on improving Baptist’s RCM operations before turning to possible expansion.

David Zito, a managing director at Guidehouse, and Ralph Lawson, chief financial officer of Baptist Health South Florida, spoke to HealthLeaders Media about the short-term and long-term goals for the joint venture.

In the immediate future, the aim is to improve Baptist’s RCM operations, after the system posted an operating loss of $31.3 million last year and saw its provision for doubtful accounts increase to $410 million, up 34% year-over-year. If that proves effective, both organizations would eye offers to implement the service in systems throughout Florida and the Southeast, Zito and Lawson said.
Below are some of the factors both organizations are seeking to address through the burgeoning partnership. 

According to Zito, Guidehouse previously approached Baptist about creating a joint venture but didn’t start negotiations in earnest until the University at Alabama, Birmingham inked a deal in 2016 to hire Guidehouse Managed Services Inc. to improve its RCM.

“We didn’t walk in with a joint venture idea, we walked in with wanting to come up with something that was different and leverage the strengths of both organizations,” Zito said.  

What Guidehouse is bringing to the table: knowledge, technology, training, and scale. What Baptist is bringing to the table: employees, culture, and name-recognition. Baptist will focus on clinical care for the community, Guidehouse will focus on revenue cycle, so both can focus on core businesses, according to Zito.

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