Ovation Healthcare partnered with a Western Colorado hospital to strengthen revenue cycle performance and improve financial stability. When the engagement began, the hospital had fallen to 2 days cash on hand. One year later, it had increased to 30 days cash on hand and is on pace to achieve an all-time high in cash collections.
Background/Challenge
When Ovation Healthcare began working with the hospital, it faced significant financial pressure that was straining cash flow and limiting its ability to invest in operations and continue serving its community. Revenue cycle inefficiencies, delayed reimbursements, and operational challenges contributed to mounting financial concerns and made it difficult to maintain long-term stability.
The hospital needed a revenue cycle partner that could quickly identify opportunities to improve cash flow while implementing sustainable processes to strengthen financial performance over the long term.
Solution
Ovation worked alongside hospital leadership to identify opportunities to accelerate collections, improve operational performance, and establish more sustainable revenue cycle processes.
The engagement focused on cash acceleration initiatives, including targeted follow-up on aged accounts receivable, workflow improvements to accelerate collections, and ongoing collaboration with leadership to remove barriers to cash flow and improve financial performance.
In addition, Ovation partnered with the hospital to optimize its professional fee revenue cycle, improving physician billing performance, accelerating reimbursement, and strengthening overall physician practice financial performance.
Results
After 12 months, the hospital has made meaningful progress toward greater financial stability. Days cash on hand improved from 2 days to 30 days, representing more than $10.1 million in additional cash.
Hospital results include:
- Increased gross collection rate from 30% to 32%, generating an estimated 4.8 million in additional collections
- Reduced AR days by 10%
- Reduced DNFB days by 33%
ProFee results include:
- Increased gross collection rate from 47% to 58%, generating an estimated $3.3 million in additional collections
- Reduced AR days by 30 days
- Reduced active AR by 25%
Together, these improvements strengthened both the hospital and physician revenue cycles, improving liquidity, accelerating cash flow, and providing greater financial flexibility to support ongoing operations and patient care.
