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Coral Springs, Florida 33067

Tom Voorhees, General Manager
AtHome Medical, with locations in Morris Plains and Hackensack, New Jersey

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 entityís 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
On AnCorís 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 organizationís 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 marketís 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 AnCorís 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. AnCorís work ethic is impeccable, and their knowledge extensive. By the projectís 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.