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Case Study
PROFESSIONAL
HEALTHCARE
RESOURCES
Healthcare Outsourcing:
Operational Efficiencies and Cost Savings
Result in Significant Improvement to Margins
SUMMARY
THE CHALLENGE
Professional Healthcare Resources (PHR), the largest independent
home healthcare provider in the Baltimore-Washington DC-Northern Vir-
ginia corridor, with a network of seven locations that serves the DC area
and over 20 key counties and independent cities in Maryland and Virginia,
engaged Infinit Outsourcing (Infinit-O) to serve as their partner in the
Philippines to provide various corporate and administrative functions to
scale with growth, improve efficiency and reduce corporate expense.
PHR has a track record of de-novo branch start-ups and selected acquisitions since its
founding in 1994. Over its history, the Company has opened six new locations and has made
three acquisitions. Starting initially as a hospital staffing agency, PHR developed growth
initiatives to enter the Medicare home health and Medicaid-waiver home care programs.
They also entered the hospice market in 2007. PHR has successfully integrated its acquisi-
tions and start-up operations, applying corporate best practices and efficiencies.
With these developments, management needed to identify strategies to support continued
organic growth and acquisition growth. These strategies had to protect the company’s mar-
gins which they see declining due to several factors, such as increasing corporate expense
due to expansion/ acquisition and a decline in overall reimbursements by their main payer,
Medicare.
Infinit-O: PHR Case Study 1
OUR SOLUTION
When PHR engaged Infinit-O for their services, they were very clear
about their goals. Using those goals as the blueprint, Infinit-O
designed a customized offshore business process model that met
and exceeded their goals.
Because Infinit-O believes that trust is the most important element
in any relationship, we started by sharing our “open-book pricing”
where partners can see each component of costs. This approach
builds trust by making the economics of the relationship transpar-
ent and our “value add ed” element more prominent.
Infinit-O leveraged low-cost, Philippine-based labor and our highly
efficient cost structure to provide a professional team and resources
for PHR that reduced labor costs significantly.
Since the beginning of the engagement, Infinit-O focused on opti-
mizing and increasing efficiency across all processes. Infinit-O
reviewed the PHR operating model to simplify production, reduce
lead and turnaround times, improve operational planning, and
practice more effective performance management.
The project-wide optimization exercise and continuous
focus on process improvement resulted in a range of
savings year after year.
As a result, operating expense decreased by an
average of 30-50%.
Infinit-O: PHR Case Study 2
OUR SOLUTION
To ensure that PHR received only
top-caliber resources, Infinit-O utilized
its 5-Step Recruitment Process to source
and hire staff members:
1. Candidates are screened based on the
requirements that were pre-defined during the con-
ceptualization process.
2. Candidates are invited for a face-to-face inter-
view session with one of the assigned Recruitment
Specialists, with the aim of assessing the candi-
dates’ inter-personal capabilities.
3. As soon as the candidates clear steps 1 and 2,
they are given project-specific test sets. This is to
gauge their overall knowledge and abilities on the
subject matter.
4. If the candidates pass steps 1-3, he/she is then
scheduled for a sit-down interview session with the
Hiring Manager. This is done to ensure that the
hiring manger can work with the candidate and the
candidate will thrive in the team’s over-all culture.
5. As soon as the candidate clears all 4 steps,
he/she is scheduled for a final interview. Although
partners usually do not interview, they are given the
option to conduct the final interview with the candi-
date before he/she gets hired.
INFINIT-O’S 5-STEP
RECRUITMENT
PROCESS
1
2
3
4
5
1
2
3
4
5
Phone/Paper
Screening
Human
Resources
Interview
Project-specific
Exam Set
Operations
Interview
Final
Interview
Infinit-O: PHR Case Study 3
OUR SOLUTION
To guarantee continuous process improvement, Infinit-O utilized business controls as part of our ISO
Standards, tight Performance Management, plus the application of Six Sigma methodologies.
Infinit-O provides services to PHR via a dedicated team and has the scale, infrastructure and access to
lower labor cost needed to support the Healthcare Industry. Relative to PHR’s local service markets, the
Philippines labor market offers high quality, highly educated labor at lower cost. For example, PHR is
able to outsource certain clinical matters including medical coding and OASIS review to Registered
Nurses at significantly lower hourly wage rates vs. the U.S. equivalent.
The U.S.-Philippines time difference also offers certain operational efficiencies. For example, PHR
uploads patient case information daily to the Company’s central servers and this information is trans-
mitted to Infinit-O. Infinit-O Staff members review PHR’s patient case information, the patient’s needs,
number of visits provided to date, evaluate compliance and make recommendations to PHR. Based on
this recommendation and the patient’s needs, PHR is able to quickly schedule or reschedule missed
visits and drive effective and efficient compliance.
Infinit-O: PHR Case Study 4
RESULTS
Eileen DeCesare, RN,MS, CNAA, LNC, NE-BC
President/CEO Emeritus, PHR
Testimonial
Once all processes were implemented, the engagement yielded the follow-
ing results:
PHR has been able to achieve its growth without sacrificing margins. Since
they were able to have access to lower labor costs, manpower require-
ments were met while reducing corporate expense related to salaries and
wages.
PHR was able to scale due to their engagement with Infinit-O. Despite an
average growth rate of 10%, PHR was able to reduce corporate expense by
an average rate of 1% per year.
Client Story
Infinit-O: PHR Case Study 5
“Professional Healthcare Resources came to Infinit-O in 2006, hoping
to get an answer to a simple question. Can a small, family-owned com-
pany realize the benefits of off-shoring in the same way that large com-
panies have been doing for years? We started small, moving a limited
set of repetitive, easily automated data entry tasks to the Infinit-O team.
The team proved very dependable and the results were immediately
apparent. Quality and volume of work were high and offered a signifi-
cant cost savings to the company. We were quickly emboldened to
expand our involvement with Infinit-O, identify even more complex
tasks to off-shore and greatly increase the size of the team. Today, the
Infinit-O team has some degree of involvement with nearly every
department in the company: Admission, Billing, Payroll, HR, IT, Report-
ing, Clinical Review. Infinit-O offers a consistently high quality and
stable workforce and continues to be one of our most valued partner-
ships. Infinit-O can be relied on and they go over and beyond expecta-
tions. They are absolutely part of our TEAM.
RESULTS
The engagement also shielded PHR from the huge
reduction in Medicare reimbursements that started
in 2011.
Patient satisfaction has been consistently positive.
Though Infinit-O has no direct hand in this, it
enables PHR to focus on its core business – deliver-
ing top-notch patient care.
Operational Efficiencies were also realized in (but
not limited to) the following areas:
Information Technology:
Because the PHR field staff relies heavily on their tablets to perform their tasks, it is essential for them to get
the support they need every time they are with a client. Before outsourcing this task, a ticket had to wait
an average of 60 minutes before it gets addressed. When PHR delegated the task to Infinit-O, resolution
time went down to an average of 30 minutes. This was possible because of the caliber of the personnel at
Infinit-O and PHR’s ability to scale the IT Department due to lower labor costs.
Medical Coding:
Having in-house medical coders requires a lot of investment and overhead, not to mention their scarcity in
the US. The Philippines has a good bench of AHIMA/AAPC certified medical coders without the hefty hourly
costs. This was also leveraged by PHR. Infinit-O made sure that all charts were coded 24-72 hours after they
were scanned into the system. This allowed the billers to submit the claim to the payer in no time.
SUMMARY
Industry: Healthcare
Offering: Business Process Outsourcing
• Saved 30% to 50% of operations costs
compared to cost of the client’s internal
and external contract resources
• Expanded capacity by leveraging a
trained and experienced team at a frac-
tion of the cost of internal resources
• Fluid Cash flow
• Continued rise in Patient Satisfaction
• Significant increase in Employee Satis-
faction
• Acquired an offsite business continuity
option
•Increase in overall company valuation
Medical Billing:
Because the company’s cash flow heavily relies on reim-
bursements, it is a must for the Medical Billing depart-
ment to be highly efficient. Outsourcing the billing tasks
to Infinit-O gave PHR access to highly specialized
personnel, who are HIPAA-compliant and governed by ISO and Six Sigma standards. These personnel also
undergo Performance Management assessments on a regular basis. This ensured that no claims are reject-
ed. This yielded to an Aging report of <30days, which by any Medical billing standards, is excellent.
Infinit-O: PHR Case Study 6
www.infinithealthcare.com
info@infinithealthcare.com
Medical providers — whether they are Healthcare Payers, Healthcare Providers, in the Soft-
ware-as-a-Service (Saas) Industry, or Pharmaceutical Industry — encounter a number of financial
challenges. The Healthcare Industry faces increasing pressures on matching labor supply with the
demand for quality service. The industry reform in the US resulted to an exponential growth in staffing
needs and stretching of resources because of 32 million newly-insured Americans seeking healthcare
coverage. Companies are not just focusing on meeting the accelerated demand for healthcare
services, they are also looking into how they can provide better healthcare at a lower cost. And that’s
where healthcare outsourcing comes in.
Healthcare outsourcing isn’t just about medical billing and coding services anymore; it can refer to a
myriad of other services. Infinit-O’s talent pool can handle claim processing or end-to-end processes
and other individual functions at a fraction of the cost of an in-house staff. We can provide a dedicated
team for the healthcare service you need to be done efficiently and accurately so you can focus on
other essential business functions.
With Infinit-O’s reliable and cost-effective outsourced processes, you can once again focus on provid-
ing quality healthcare without worrying about the administrative tasks that go along with it.

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Case Study: Healthcare Outsourcing - Operational Efficiencies and Cost Savings Result in Significant Improvement to Margins

  • 1. Case Study PROFESSIONAL HEALTHCARE RESOURCES Healthcare Outsourcing: Operational Efficiencies and Cost Savings Result in Significant Improvement to Margins
  • 2. SUMMARY THE CHALLENGE Professional Healthcare Resources (PHR), the largest independent home healthcare provider in the Baltimore-Washington DC-Northern Vir- ginia corridor, with a network of seven locations that serves the DC area and over 20 key counties and independent cities in Maryland and Virginia, engaged Infinit Outsourcing (Infinit-O) to serve as their partner in the Philippines to provide various corporate and administrative functions to scale with growth, improve efficiency and reduce corporate expense. PHR has a track record of de-novo branch start-ups and selected acquisitions since its founding in 1994. Over its history, the Company has opened six new locations and has made three acquisitions. Starting initially as a hospital staffing agency, PHR developed growth initiatives to enter the Medicare home health and Medicaid-waiver home care programs. They also entered the hospice market in 2007. PHR has successfully integrated its acquisi- tions and start-up operations, applying corporate best practices and efficiencies. With these developments, management needed to identify strategies to support continued organic growth and acquisition growth. These strategies had to protect the company’s mar- gins which they see declining due to several factors, such as increasing corporate expense due to expansion/ acquisition and a decline in overall reimbursements by their main payer, Medicare. Infinit-O: PHR Case Study 1
  • 3. OUR SOLUTION When PHR engaged Infinit-O for their services, they were very clear about their goals. Using those goals as the blueprint, Infinit-O designed a customized offshore business process model that met and exceeded their goals. Because Infinit-O believes that trust is the most important element in any relationship, we started by sharing our “open-book pricing” where partners can see each component of costs. This approach builds trust by making the economics of the relationship transpar- ent and our “value add ed” element more prominent. Infinit-O leveraged low-cost, Philippine-based labor and our highly efficient cost structure to provide a professional team and resources for PHR that reduced labor costs significantly. Since the beginning of the engagement, Infinit-O focused on opti- mizing and increasing efficiency across all processes. Infinit-O reviewed the PHR operating model to simplify production, reduce lead and turnaround times, improve operational planning, and practice more effective performance management. The project-wide optimization exercise and continuous focus on process improvement resulted in a range of savings year after year. As a result, operating expense decreased by an average of 30-50%. Infinit-O: PHR Case Study 2
  • 4. OUR SOLUTION To ensure that PHR received only top-caliber resources, Infinit-O utilized its 5-Step Recruitment Process to source and hire staff members: 1. Candidates are screened based on the requirements that were pre-defined during the con- ceptualization process. 2. Candidates are invited for a face-to-face inter- view session with one of the assigned Recruitment Specialists, with the aim of assessing the candi- dates’ inter-personal capabilities. 3. As soon as the candidates clear steps 1 and 2, they are given project-specific test sets. This is to gauge their overall knowledge and abilities on the subject matter. 4. If the candidates pass steps 1-3, he/she is then scheduled for a sit-down interview session with the Hiring Manager. This is done to ensure that the hiring manger can work with the candidate and the candidate will thrive in the team’s over-all culture. 5. As soon as the candidate clears all 4 steps, he/she is scheduled for a final interview. Although partners usually do not interview, they are given the option to conduct the final interview with the candi- date before he/she gets hired. INFINIT-O’S 5-STEP RECRUITMENT PROCESS 1 2 3 4 5 1 2 3 4 5 Phone/Paper Screening Human Resources Interview Project-specific Exam Set Operations Interview Final Interview Infinit-O: PHR Case Study 3
  • 5. OUR SOLUTION To guarantee continuous process improvement, Infinit-O utilized business controls as part of our ISO Standards, tight Performance Management, plus the application of Six Sigma methodologies. Infinit-O provides services to PHR via a dedicated team and has the scale, infrastructure and access to lower labor cost needed to support the Healthcare Industry. Relative to PHR’s local service markets, the Philippines labor market offers high quality, highly educated labor at lower cost. For example, PHR is able to outsource certain clinical matters including medical coding and OASIS review to Registered Nurses at significantly lower hourly wage rates vs. the U.S. equivalent. The U.S.-Philippines time difference also offers certain operational efficiencies. For example, PHR uploads patient case information daily to the Company’s central servers and this information is trans- mitted to Infinit-O. Infinit-O Staff members review PHR’s patient case information, the patient’s needs, number of visits provided to date, evaluate compliance and make recommendations to PHR. Based on this recommendation and the patient’s needs, PHR is able to quickly schedule or reschedule missed visits and drive effective and efficient compliance. Infinit-O: PHR Case Study 4
  • 6. RESULTS Eileen DeCesare, RN,MS, CNAA, LNC, NE-BC President/CEO Emeritus, PHR Testimonial Once all processes were implemented, the engagement yielded the follow- ing results: PHR has been able to achieve its growth without sacrificing margins. Since they were able to have access to lower labor costs, manpower require- ments were met while reducing corporate expense related to salaries and wages. PHR was able to scale due to their engagement with Infinit-O. Despite an average growth rate of 10%, PHR was able to reduce corporate expense by an average rate of 1% per year. Client Story Infinit-O: PHR Case Study 5 “Professional Healthcare Resources came to Infinit-O in 2006, hoping to get an answer to a simple question. Can a small, family-owned com- pany realize the benefits of off-shoring in the same way that large com- panies have been doing for years? We started small, moving a limited set of repetitive, easily automated data entry tasks to the Infinit-O team. The team proved very dependable and the results were immediately apparent. Quality and volume of work were high and offered a signifi- cant cost savings to the company. We were quickly emboldened to expand our involvement with Infinit-O, identify even more complex tasks to off-shore and greatly increase the size of the team. Today, the Infinit-O team has some degree of involvement with nearly every department in the company: Admission, Billing, Payroll, HR, IT, Report- ing, Clinical Review. Infinit-O offers a consistently high quality and stable workforce and continues to be one of our most valued partner- ships. Infinit-O can be relied on and they go over and beyond expecta- tions. They are absolutely part of our TEAM.
  • 7. RESULTS The engagement also shielded PHR from the huge reduction in Medicare reimbursements that started in 2011. Patient satisfaction has been consistently positive. Though Infinit-O has no direct hand in this, it enables PHR to focus on its core business – deliver- ing top-notch patient care. Operational Efficiencies were also realized in (but not limited to) the following areas: Information Technology: Because the PHR field staff relies heavily on their tablets to perform their tasks, it is essential for them to get the support they need every time they are with a client. Before outsourcing this task, a ticket had to wait an average of 60 minutes before it gets addressed. When PHR delegated the task to Infinit-O, resolution time went down to an average of 30 minutes. This was possible because of the caliber of the personnel at Infinit-O and PHR’s ability to scale the IT Department due to lower labor costs. Medical Coding: Having in-house medical coders requires a lot of investment and overhead, not to mention their scarcity in the US. The Philippines has a good bench of AHIMA/AAPC certified medical coders without the hefty hourly costs. This was also leveraged by PHR. Infinit-O made sure that all charts were coded 24-72 hours after they were scanned into the system. This allowed the billers to submit the claim to the payer in no time. SUMMARY Industry: Healthcare Offering: Business Process Outsourcing • Saved 30% to 50% of operations costs compared to cost of the client’s internal and external contract resources • Expanded capacity by leveraging a trained and experienced team at a frac- tion of the cost of internal resources • Fluid Cash flow • Continued rise in Patient Satisfaction • Significant increase in Employee Satis- faction • Acquired an offsite business continuity option •Increase in overall company valuation Medical Billing: Because the company’s cash flow heavily relies on reim- bursements, it is a must for the Medical Billing depart- ment to be highly efficient. Outsourcing the billing tasks to Infinit-O gave PHR access to highly specialized personnel, who are HIPAA-compliant and governed by ISO and Six Sigma standards. These personnel also undergo Performance Management assessments on a regular basis. This ensured that no claims are reject- ed. This yielded to an Aging report of <30days, which by any Medical billing standards, is excellent. Infinit-O: PHR Case Study 6
  • 8. www.infinithealthcare.com info@infinithealthcare.com Medical providers — whether they are Healthcare Payers, Healthcare Providers, in the Soft- ware-as-a-Service (Saas) Industry, or Pharmaceutical Industry — encounter a number of financial challenges. The Healthcare Industry faces increasing pressures on matching labor supply with the demand for quality service. The industry reform in the US resulted to an exponential growth in staffing needs and stretching of resources because of 32 million newly-insured Americans seeking healthcare coverage. Companies are not just focusing on meeting the accelerated demand for healthcare services, they are also looking into how they can provide better healthcare at a lower cost. And that’s where healthcare outsourcing comes in. Healthcare outsourcing isn’t just about medical billing and coding services anymore; it can refer to a myriad of other services. Infinit-O’s talent pool can handle claim processing or end-to-end processes and other individual functions at a fraction of the cost of an in-house staff. We can provide a dedicated team for the healthcare service you need to be done efficiently and accurately so you can focus on other essential business functions. With Infinit-O’s reliable and cost-effective outsourced processes, you can once again focus on provid- ing quality healthcare without worrying about the administrative tasks that go along with it.