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| Photo credit: Asterisc21 |
The first step in solving a problem is to first define and then clarify the problem, right? Unless your problem is invisible. What do I mean by an invisible problem? I’m referring to that which remains unseen for the most part, while it manages to wreak havoc somewhere else, making it difficult, if not impossible, to solve. For Example: declining revenue in the Emergency Department. Are you working on solving the real (i.e. invisible) problem, or are you just treating its symptoms? (Watch 2 minute video case study)
Before BDA begins working with a client, it helps them complete its Preliminary Analysis Report, or “Prelim” for short, which provides an opportunity to look “under the hood” before beginning an engagement. In some cases, the results can be as dramatic as watching invisible ink begin to appear. In other words, the Prelim will often shine a bright light on what has remained invisible, and thereby, difficult to solve.
Case in point: a new ED client stated that its billing total had improved a full percentage point (at the highest level category) over the previous year’s total, so they did not see a problem there. They suspected that the reason that their overall ED revenue was down was due to their rate structure. After completing a Prelim, which automatically compared all ED services billed with BDA’s proprietary ED Facility Trends benchmarks, it was revealed that in spite of the 1% growth increase over the prior year, it was down nearly 14% for a hospital of its size! (Watch 2 minute video case study)
The solution became clearer after BDA reviewed the hospital’s Volume Trends, which pointed to a combination of change in the patient mix, high turnover and a lack of annual updates as all contributing to the lower than expected net revenue. Once the real problems became visible, the solutions that were initiated showed a dramatic impact on revenue in a short time.
Provisions within the Affordable Care act are expected to change the way doctors provide care, forcing what some have called “a smarter use of the resources we already have.” You can wait and see what impact this will have on your net revenue at that time, or you can complete a Prelim today to expose and solve your invisible problems now.