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The California Sutter Health Approach - Case Study Example

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The problems that were faced by Sutter Health is that the patient financial services (PFS) staff members could not access real information on key financial and operational indicators such as account receivable (A/R) and cash collections…
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The California Sutter Health Approach

The central business office also faced problems related to lack of real-time information and the accountants could effectively monitor their progress.
Basically, Sutter Health is a leading not-for-profit network of community-based healthcare providers which is responsible for delivering health care to more than 100 Northern California communities. This network is comprised of more than two dozen acute hospitals and physician organizations that are specifically meant to provide health care to different consumers. The group also consists of medical research facilities, hospice and occupational health networks, long-term care centers as well as home-based care services. Though not every American does not have a valid health insurance, Sutter Health realized that about 47 million Americans can still pay for their medical requirements hence there was need to transform the cash collection system in order to improve the efficiency of the hospital in dealing with issues such as registration as well as discharge of the patients from the hospital.
Sutter proposed a strategy of increasing collections while reducing A/R days and the main focus of this was to empower the individuals PFS members to be responsible for all the accounts they dealt with. This strategy was meant to inculcate a sense of responsibility among the members of the healthcare group and the following benchmarks were implemented in order to turn around the fortunes of the organization. Cash collections were improved which made the hospital effective in dealing with financial problems previously faced by the hospital group. The following proposals were also made in order to improve the efficiency of collecting cash from the patients. It was suggested that there was a need to generate timely reports on demand which included aging analysis, A/R stratification, discharged not final billed (DNFB) analysis, credit balance analysis, and analysis of problem payers. In order to achieve this feat, a new system accessible online was to be developed which enabled the members of staff to access all data which they may require in their operations in order to produce clean claims.  ... Read More
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