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7 th  Annual The Revenue Cycle Management Summit  Panel Discussion  How to Prepare Providers, Hospitals and Health Systems for Bundling Payments and Pay-For- Performance Contracting
The future requires   out of the box  thinkers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
We have an app for that….
Insurance Premium Breakdown Administrative Fee Profit Medical Costs
How Does an Insurance Plan Make Money? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What three regulatory changes, near future, will alter insurance plans profits? (requiring change to systems of improving patient outcome and cost controls) ,[object Object],[object Object],[object Object]
getting squeezed? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Financial Pressures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Bundling of Payment  Information Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object]
A real balancing act
Data aggregation, track, trend, alerts against clinical & financial benchmarks ,[object Object],[object Object],[object Object],[object Object]
Integrating healthcare information…  clinical & financial ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Identification of Medical Risk ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data elements consistent in hospital’s information    silos which run in different software environments  Materials Management Patient Demographics  Medical Record Number Third Party Payor  Location of Service  ICD-9/CPT-4/DRG Provider Information  Lawson Data Elements
Data Engine DATANEX (powered by proprietary  pattern recognition software)   ADT, 837, 835, Billing, Collection Charge Master Information Pharmacy Financial & Utilization Information In/Out Patient   Clinical Utilization Physician Information, ICD9, CPT etc . Self Building Longitudinal  Patient & Physician  information Key Information Dash Board & “ Alert” engines Rules, Laws,  Regulations, Comparison data Materials  Management (medical devises) Sentry Data Systems Current Structure
Adopting and accepting new process “ Doing more with less”
[object Object],[object Object],[object Object],[object Object],[object Object],Patient Information  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Drug Information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Hospital Charge Information
Why do hospitals need claims BI Applications?  To assure proper reimbursement in the shortest time at the lowest administrative cost ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Hospital’s Requirements Claims Guardian output
BI Applications allows hospitals to evaluate contract reimbursement & performance measures ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Examples of critical Information generated by revenue cycle BI applications 1 .  Hospital Charge master codes Links charge master to revenue codes Provides a tracking system that alerts missing charge master to revenue codes Example: A service with no charge and consequently not linked to revenue code. 2 .  Link Revenue Code to a Claim  Assures that  all the revenue codes are link to a claim No volume or time limitation for alert system  3.  Explanation of Payment  (EOP): Links 837 claim to reimbursement form 835 No volume or time limitation for alert system  4 .  Provides a way to analysis the service preformed  Eg. CPT, HCPC, J Code Links  patient and physician and location of service to the ICD-9 codes , Charge master and revenue codes associated with hospital’s intervention  Clinical aspect: Performed service, captured the service, billed for service,  reimbursed for service, link to physician that performed service, link to patient  that received the service and the diagnostic codes.  All of the key components are reflected in both physician and patient databases
5 .  Provides linkage of diagnostic codes with patient event    The system captures both the primary and all secondary diagnosis codes (ICD-9) which will allow institutes to better  bill secondary insures 6 . Recognition of utilization patterns: Links specific revenue codes/charges/procedures to a specific third party  payor (BCBS plan 123, with employer group 8910) 7. Are we flagging (alerting) change in patient clinical severity  eg. Transfer from Med/Surg bed to an ICU bed. eg. How does system recognize death events. 8. Recognition of utilization patterns: Must link specific revenue codes/charges/procedures to a specific third party  payor (BCBS plan 123, with employer group 8910) 9. Utilization What are the mechanisms established to link utilization of services other than pharmacy to location, physician, patient, and  third party payor?
Identification of financial & medical risk ,[object Object],[object Object],[object Object],[object Object]
Identification of financial & medical risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Medical Cost Drivers Numerator vs. Denominator Data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Balancing the Pie Bundle Payments for Providers linked to Performance Measures ,[object Object],Administrative Fee Profit Medical Costs
Medical Cost Controllers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
To manage  “Bundled Payments”  one needs to build technology systems like Lego's  (integrated & connected) ,[object Object],[object Object]
“ Bundling Payments link to performance measures ”   promotes linkage of divergent data sets to manipulate and re-compile information into transaction sets that, if applied, will have  financial and clinical impact
Sentry Data Systems Key Values ,[object Object],[object Object],[object Object]
Thinking about “bundled payments linked to performance measures”… requires thinking out of the box
About Sentry ,[object Object],[object Object],William D. Kirsh, DO, MPH Chief Medical Officer [email_address] 800-411-4566

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Revenue Cycle Management

  • 1.  
  • 2. 7 th Annual The Revenue Cycle Management Summit Panel Discussion How to Prepare Providers, Hospitals and Health Systems for Bundling Payments and Pay-For- Performance Contracting
  • 3.
  • 4. We have an app for that….
  • 5. Insurance Premium Breakdown Administrative Fee Profit Medical Costs
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 12.
  • 13.
  • 14.
  • 15. Data elements consistent in hospital’s information silos which run in different software environments Materials Management Patient Demographics Medical Record Number Third Party Payor Location of Service ICD-9/CPT-4/DRG Provider Information Lawson Data Elements
  • 16. Data Engine DATANEX (powered by proprietary pattern recognition software) ADT, 837, 835, Billing, Collection Charge Master Information Pharmacy Financial & Utilization Information In/Out Patient Clinical Utilization Physician Information, ICD9, CPT etc . Self Building Longitudinal Patient & Physician information Key Information Dash Board & “ Alert” engines Rules, Laws, Regulations, Comparison data Materials Management (medical devises) Sentry Data Systems Current Structure
  • 17. Adopting and accepting new process “ Doing more with less”
  • 18.
  • 19.
  • 20.
  • 21. Examples of critical Information generated by revenue cycle BI applications 1 . Hospital Charge master codes Links charge master to revenue codes Provides a tracking system that alerts missing charge master to revenue codes Example: A service with no charge and consequently not linked to revenue code. 2 . Link Revenue Code to a Claim Assures that all the revenue codes are link to a claim No volume or time limitation for alert system 3. Explanation of Payment (EOP): Links 837 claim to reimbursement form 835 No volume or time limitation for alert system 4 . Provides a way to analysis the service preformed Eg. CPT, HCPC, J Code Links patient and physician and location of service to the ICD-9 codes , Charge master and revenue codes associated with hospital’s intervention Clinical aspect: Performed service, captured the service, billed for service, reimbursed for service, link to physician that performed service, link to patient that received the service and the diagnostic codes. All of the key components are reflected in both physician and patient databases
  • 22. 5 . Provides linkage of diagnostic codes with patient event The system captures both the primary and all secondary diagnosis codes (ICD-9) which will allow institutes to better bill secondary insures 6 . Recognition of utilization patterns: Links specific revenue codes/charges/procedures to a specific third party payor (BCBS plan 123, with employer group 8910) 7. Are we flagging (alerting) change in patient clinical severity eg. Transfer from Med/Surg bed to an ICU bed. eg. How does system recognize death events. 8. Recognition of utilization patterns: Must link specific revenue codes/charges/procedures to a specific third party payor (BCBS plan 123, with employer group 8910) 9. Utilization What are the mechanisms established to link utilization of services other than pharmacy to location, physician, patient, and third party payor?
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. “ Bundling Payments link to performance measures ” promotes linkage of divergent data sets to manipulate and re-compile information into transaction sets that, if applied, will have financial and clinical impact
  • 30.
  • 31. Thinking about “bundled payments linked to performance measures”… requires thinking out of the box
  • 32.