Financial Case Studies

"Increase in Subsidy and Costs"

Problem:
The group was turning to administration year after year and requesting an increase in their hospital subsidy. In addition, the billing and collection efforts had not increased appropriately to help cover the increase in hospital subsidy. At the time, the group was collecting approximately 27% of all charges.

Centrix Tools:
Perioperative Anesthesia Service Optimization (PASO)
Subsidy Reduction/ Elimination Program (SREP)
OR Analysis

Approach:
The OR Analysis determined an increase in the unit charge was needed. This increased the revenue for several departments in the facility, which also increased the facility revenue.

Solution:
$385,000 increase in hospital revenue.
Through the experience and hard work of our billing department, revenue increased from twenty seven percent to forty five percent of total charges.


"Financially Inefficient Department"

Problem:
Prior to Centrix Group, a hospital-employed provider owned and managed the contracted group in this facility. While the clinical performance was superb, the hospital administration realized they could benefit financially with a management company. The hospital contacted Centrix to determine a solution.

Centrix Tools:
Subsidy Reduction/ Elimination Program (SREOP)
Surgeon Engagement Program (SEP)

Approach:
Again, the OR Analysis worked perfectly. Research determined the department could vastly improve by restructuring, and the hospital could eliminate the subsidy entirely.

Solution:
Elimination of hospital subsidy.
Centrix Group completely eliminated the need for a subsidy by increased efficiency, implementation of new managerial initiative and policies, and increased insurance billing and collection efforts.


"Mismanagement of a Department"

Problem:
The hospital wanted to add another provider to their current mix. Their current group was CRNA led and it was clear it was a good time for a change. They hoped with the new provider addition, this would increase caseload and offer more complex procedures.

Centrix Tools:
Perioperative Anesthesia Service Optimization (PASO)
Surgeon Engagement Program (SEP)
Subsidy Reduction/ Elimination Program (SREP)
OR Analysis

Approach:
We determined that through employing our billing practices and improving efficiency, the hospital could increase caseload and ensure a financially solvent department.

Solution:
Addition of a provider at no increased cost to the facility.
Decreasing the costs and increasing the efficiency of the department allowed the financial possibility to hire the additional provider, which has increased the case volume. This facility has also found revenue making it possible to open a new OR suite.