Why talk about the business case? Leaders struggle with aligning the work of planned care with the business of the health center. This struggle has led many to question whether adoption of the business case is a suitable strategy for health centers. It is the right thing to do!
Evolution of the Business Case and Re-Design Framework Senior leaders need to focus on the business case for leveraging resources Lessons learned from high performing organizations about financial success while implementing the re-design and the business case concepts TRANSPARENCY IS KEY!!!!
Early Observations Lack of discipline in documenting the core business case Lack of alignment of financial and administrative systems to support planned care Silos in organizations creating barriers to achieving optimal results
Typical Organizational Chart Big Boss Little Boss 1 Little Boss 2 Little Boss 3 Not Enough workers Way Too Many workers Who Knows Here
Organizational Continuum External Internal Clinical Admin Support Finance Our Customer Operations HIT
Ability to Convert Solutions into Reality Potential for Prosperity AREA of SUCCESS Ability to Generate Solutions
Process Improvements No waits or delays 45 minute wait vs. 15 minute visit Match demand and capacity Reduced no shows more visits Decreases waste! Increases patient satisfaction Time to provide care Timely, quality billing
Value to the Customer Focus on Value - From the Customer s perspective Understand the Value Stream Seek Perfection Optimize Flow Design systems to Pull demand Make sure to close today s problems today Every Problem Matters
Decision Support Accountability for Productivity Clinic report cards User/Encounter reports on virtual office Patient Utilization Patterns Chronic No-Shows & No-show Graphs Utilization of Capacity Provider Productivity RVUs PECS/UDS Reports Business Office reports Publish data on Intranet
High Leverage Points Optimize teams Apply lean principles to reduce cost and minimize waste Eliminate waits Improve access Revenue maximization strategies Make full use of capacity Create transparency of information
Transparent Results Training on proper E & M coding, billable services increased by 36%, even though the number of encounters increased by only 8%. Self-pay collections increased from 42% to 77% in two months
More Transparent Results With RVU analysis, we determined we needed to raise fee schedule by 25% = $80K annual revenue increase Improved coding = $25K annual revenue increase Patient co-pay for discounted services was increased from $10 to $15 = $20K annual revenue increase
June-October Revenue Comparison $2,500,000.00 $2,301,794.00 $2,000,000.00 $1,500,000.00 $1,000,000.00 $1,858,693.00 Revenue 23% increase in Revenue $500,000.00 $- 2005 2006 June-October Encounter Comparison 44000 43000 43039 29% decrease in Encounters 42000 41000 40000 39000 38000 38285 Encounters 37000 36000 35000 2005 2006
The ARcare Vision VISION: ARcare will be the provider of first choice in our communities, the largest primary care provider in Arkansas, and a national leader of community health centers.
The ARcare Values The values of ARcare guide employees in providing superior service to fulfill our mission and achieve our vision. Stewardship valuing our resources daily to insure our mission tomorrow Positive Attitude empowering employees to create an energetic work environment Integrity honest, ethical, and dedicated to all we do Respect appreciating all people, work, and ideas Improvement always striving for performance excellence Teamwork achieving our goals together
Decisions to Support Change Know where you are currently at Map all areas and processes Know where you want to go Decide what can change after mapping Know & Utilize the business case Nothing is ever changed successfully without determining where you are and deciding on where you want to be.
Ability to Convert Solutions into Reality Average Maximum The Challenge Where are You? Minimum Average Ability to Generate Solutions Maximum