Tue Feb 07 2012
By CHRISTINE L. PRATT
Staff Writer
With growing bad debt and charity care, Pomerene Hospital is embarking on a plan to analyze paid claims and strenthen the revenue cycle expertise, according to a presentation made to members of the hospital's board.
The increase over the past couple years, which has both a negative impact to cash and the hospital's margin, is something that has plagued all hospital of all types, said chief financial officer Jason Justus at the Aug. 26 meeting.
In 2008, the monthly peaks for charity care and bad debt totaled 4 percent to 6 percent. That climbed to 6 percent to 8 percent, and this year is hitting 8 percent to 10 percent, said Justus, noting several reasons for the increase include a sluggish economy, increasing demands on patients as far as individual responsibility, the hospital's methods of accounting for costs and collections.
So far this year, the Pomerene has recorded $1.25 million in charity care and $1.45 million in bad debt, said Justus, noting they represent 52.5 percent of overall cash collections. Both for all of 2009 totaled $2.2 million.
There is an increasing trend in the percentage of bad debt attributed to Medicare and private pay, especially non-Amish, according to Justus, looking at the various payor classes. He suggest the increase may be related to changes in pricing and reimbursement and an incresing trend toward patient responsibilty among those with insurance.
Similarly, both are making an impact on the declining cash collections, he said.
In an attempt to dig deeper into the problem, Justus said, he will be reviewing the write-offs and reimbursements, checking to ensure the hospital was appropriately paid and, further, weighing the benefits of a possible amnesty program.
To strenghten the revenue cycle expertise, he is looking to establish goals and expectations that are attainable, ensure staff are fully implementing existing tools, including those which properly classify patients into payor groups at registration and during the reimbursement phase.
He also looks to reviewing contracts and contract rates for services to better ensure the hospital is maximizing its ability to be reimbursed at the greatest rate.
Unrelated to collections, Justus asked for and received board approval for a capital project to repave the hospital's two drives and parking area.
The project, included in the 2010 budget, will cost $45,000 and be completed by Melway Paving sometime in late September, with work to take three-four days.
It not only will include resurfacing with 2 inches of asphalt, but grinding of 48,000 square feet, and restriping of the parking lot.
Reporter Christine L. Pratt can be reached at 330-674-5676 or e-mail cpratt@the-daily-record.com.
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