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4613 N. University Drive, #560
Coral Springs, Florida 33067 |
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| Tom Voorhees, General Manager |
AtHome Medical, with locations in Morris Plains and Hackensack, New Jersey
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In May, 1999, Alliance Home Care and AtHome Medical, both HME and respiratory
service providers in Northern New Jersey, merged and soon experienced explosive
growth. By January, 2002, the new company was feeling the negative effects of rapid
growth on its financial performance. DSO had risen significantly as a result of the
increased business as well as the failure of an outside billing service to meet expectations
in collecting one of the merged entity’s receivables in a timely and effective manner. In
an effort to address these problems, all billing and collections activities were brought
in-house, and Customer Service and Billing were centralized to one location. The
change, while necessary, resulted in significant turnover and an influx of new and
relatively inexperienced staff.
Our management team made the decision to retain AnCor Consulting to assist us in
addressing the growing receivable issues and help improve cash flow. Working with
management, AnCor identified several areas where reengineering and rigorous training
were required to establish the controls necessary to improve the processes. By providing
micromanagement of the daily order-to-cash operations, AnCor was able to:
- Redesign the workflow
- Clean up system control files
- Implement data collection sheets for key services
- Identify necessary staff changes and assist management in reassigning
and recruiting key personnel
- Provide company-wide training in coverage criteria and documentation
requirements
On AnCor’s recommendation, the company moved MestaMed, our business software, to
a larger server. This resulted in substantially faster processing, thus increasing our
efficiency and enhancing our reporting capabilities. Processes that had taken five hours
to complete are now completed in five minutes. The system upgrade has already paid for
itself in terms of increased staff productivity and a decrease in processing time.
Overall, the results have been dramatic. Since the reengineering process began, the
organization’s performance has improved on many levels. The reengineering has
resulted in an efficient and effective workflow. The missing controls and tools are now in
place to allow daily, weekly and monthly measurement of productivity and accuracy for
all departments. The staff is well trained, and we have strong, proficient leadership in all
areas of the organization. Employee morale is excellent, and there is minimal turnover.
Additionally, our referrals continue to increase, influenced by our market’s recognition
of our improved intake processes and outstanding customer service levels.
Our DSO has been reduced by 180 days, and collections have increased significantly.
Cash collected in the fourth quarter of 2003 was in excess of $1 million more than in the
first quarter of 2003 when the project began. Front-end error rates have consistently
been under 5%, resulting in the generation of cleaner claims. Our processes are now
current, with 98% of all orders confirmed within 48 hours of delivery. Coupled with
improved processes and redesigned work distribution in the billing area, the
organization is dropping record volumes of clean claims, with the percentage of denials
at an all time low.
In closing, I would like to say a word about AnCor’s principals, Michael Barish and
Karen Moore. Coming into an organization as "outsiders" presents numerous challenges
to consultant and staff alike. Mike and Karen consistently met those challenges with
poise, respect and a dedication worthy of supreme praise. AnCor’s work ethic is
impeccable, and their knowledge extensive. By the project’s end, they had become one
with our mission, gaining the respect, friendship and admiration of our team. They are
true professionals, and I strongly recommend them to anyone considering their services.
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