John C. Fremont Healthcare District has been contracted with Warbird Financial Partners since August, in an attempt to turn around the district’s financial situation.
During the November meeting of the hospital board, Warbird managing director Kari Cornicelli gave an update on the findings and accomplishments during the partnership so far.
“We look for areas with an opportunity for optimization,” she said. There has been a focus on driving and improving the bottom line.
On Oct. 3, a significant assessment was completed and she said it was “very detailed,” focusing on existing financial reports, revenue cycle, accounts receivable, accounts payable and many others.
Interviews were conducted with staff.
Routine observations
A big routine observation was that the turnover in leadership roles has created a team that lacks direction.
Cornicelli said the goal was to understand how to bring stability to the current team.
Routine accounts reporting has lacked, causing the healthcare district to miss out on funding deadlines. Cornicelli said the district is not in a position to allow that to continue.
Also, it was found that staff had not implemented the findings of the most recent audit, as well as cost reports.
Achievements
“These have been in tandem,” Cornicelli stated.
The district put out a request for proposals for a new revenue cycle manager and is also pursuing an in-house option.
The fieldwork for the external audit has been completed and past recommendations have been implemented.
A request for proposals to complete and file the district’s cost report was released. The deadline is Dec. 2 and three responses were received.
This is particularly important because there is a district/hospital supplemental funding program the district will be eligible for, but has not been in the past because cost reports were not complete.
Interim chief executive officer Pat Ryan did say the district has not “fully” lost funding, but it has not been maximized, either.
Cornicelli added claims will be submitted to get the full funding amount in the future, and she cannot predict the exact amount, but it will be substantial.
“I would not depend on this” as funding, Ryan noted.
In terms of the district’s Charge Master, the Warbird team will assist with increasing charges. Reimbursements have been missed in the past because charges are not high enough.
The overall target is 10 percent and the team will target specific areas for increases. Payers have received notice of increases.
Ryan felt it was “important to take heed” of Cornicelli’s comments, noting not all prices are being increased and the district is being strategic.
Board member Dr. Joseph Rogers noted it seems as if the district has been tardy, if not delinquent, in its increases. Cornicelli said the district has suffered from increasing rates and a lack of strategy.
A study is being done for the district’s home health and hospice services and the service line analysis has been complete. “I’m excited about the work that’s been done.”
The district team is looking into providing new services.
The revenue cycle is being improved and improvements may not be immediate, but denials will eventually be decreased.
Productivity levels have been increased, as well.
For days cash on hand, the district “didn’t have a good handle” on accounts payable reporting.
Cornicelli noted it is key to have an eye on the ball for days cash on hand both daily and in the future.
The team is working on a three-year capital plan.
Key performance indicators are “near and dear to my heart,” she said. She wants to change the financial reporting to give a succinct package. It is also important to be transparent with restricted funds.
Finally, the team is working on a financial planning and annual calendar.
Cornicelli was thankful for the opportunity to provide services to the district and continue to strategically drive implementation.
Things are “definitely moving in the right direction.”
Responses (0)