University of Iowa Hospitals & Clinics: Using Payer Contract Management to Improve Reimbursement
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1 University of Iowa Hospitals & Clinics: Using Payer Contract Management to Improve Reimbursement June 18, 2013 Mari Anne Ehler Associate Director, Patient Financial Services UI Health Care Cindy Lowe-Johnson Director, Product Management Experian Healthcare
2 Today s discussion Healthcare industry challenges About University of Iowa Health Care Challenges facing University of Iowa Health Care Importance of hospital revenue integrity Leveraging technology to verify reimbursement accuracy and recover underpayments Contract Management Process Questions and answers 2
3 About University of Iowa Health Care 2 hospitals UI Hospitals and Clinics UI Children s Hospital 200 outpatient clinics & care areas FY2012: 977,337 visits Inpatients: >32,000 inpatients Emergency: >59,000 visits 57 commercial, governmental, work comp contracts 3
4 How hospital revenue integrity got started at the University of Iowa Health Care Access Front End 4
5 What does this iceberg have to do with revenue integrity and the revenue cycle? 5
6 Revenue Integrity Silent PPO activity Financial Analysis Payor Report Card Contracts negotiated Pricing of services Market share Obsolete, Outdated Contracts Payment is posted Bad debt collections Patient Access/Scheduling Registration Check in/admission Systematic Payor Errors Fee Schedule Verification Inaccurate/outdated Registration Info Feedback EOB analysis Denial management Not covered charges Contractual adjustments Patient is seen/discharged Charges posted Feedback Inappropriate adjustments & denials Insurance Follow-up Documentation & Coding Bill created Claim submitted Untimely Payments 6
7 The University of Iowa Health Care Revenue Integrity factors for success Getting paid from the right party Getting paid in the right amount of time Getting paid the right amount of money Getting paid with the least amount of effort 7
8 Issues facing University of Iowa Health Care Healthcare contracts growing in complexity Current payer contracts have methodologies using outliers, carve-outs, fee schedules, and a variety of groupers including MS-DRG, EAPG, APR- DRG, and APC s Current Revenue Integrity Database Unable to handle Medicare reimbursement methodology Large number of false variances and underpaid claims not being flagged Lack of real time data Lack of reporting functionality Unable to provide any analytical reports unlike the physician group 8
9 Healthcare Contract Management process Extract and load claims and transactions on a daily basis Compare what the payer allows against what is expected Ability to review detailed information on how expected reimbursement is derived Document follow-up with payer Useful information for contract analysis 9
10 Current state of project Data integration 1.3 million historical claims & related transactions loaded Contracts defined 39 contracts set up Wide variety and complexity supported QA has been completed- and ongoing Live web instructor training week of April 1 st Working LIVE in the system, as of 4/8/2013 in identification of variances and submitting appeals 10
11 Expectations Accurate and clean data Ability to validate reimbursement accuracy Both underpayments and overpayments Increase underpayment recoveries Identify opportunities and fix internal issues Reporting functionality entirely lacking with the current system Will allow to provide additional feedback to individual departments Increasing staff efficiency in Revenue Integrity department 11
12 Suggestions / What we ve learned Create open communication with Payer Relations and your HCIS departments Get familiar with your data sources Understand your payer contracts Knowledgeable project manager/lead Focus not just on underpayments, but also internal opportunities Establish credibility with payers Appeal claims based on contractual data and not just a hunch 12
13 Questions?
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