Top 5 U.S. Home Healthcare Provider – DSO Reduction
REDUCE ADJUSTMENTS, WRITE-OFFS AND COLLECTION TIME for accounts receivables across 350 U.S. offices for this medical equipment company with $1.2 billion in annual revenue
Project Focus
Medical Equipment Supplier’s Patient Intake, Accounts Receivables and Collections departments
Assess revenue management operations, from intake through billing and collections, at representative locations
Identify collection performance barriers and opportunities
Design a high-performance revenue management model
Plan for and facilitate company-wide implementation
Client Gains: Financial and Operating Benefits
At four months following implementation:
64% reduction in revenue adjustments
Cut suspended billing (>60 days as % of net revenue) by more than half
42% decrease in accounts receivable >180 days
Reduced days sales outstanding (DSO) by 25%; four years later, original DSO >100 days had improved by another 25% for a total reduction of 50%
25% improvement in productivity
Key Changes that Supported Client Goals
Refined revenue management and collections models and training program for immediate performance improvement
Used principles-based approach to operations model design, to achieve implementation success across the company’s diverse business environments and systems
Built culture of “turn-around” versus “deadline,” focused on avoiding backlogs and deterioration of accounts receivables – supported by quality reviews at key points to minimize delays and write-offs, and by positioning and training supervisors
Incorporated continuous process review and measurement reports to achieve ongoing improvements in revenue management, service, quality, and productivity
Tested the new model for validity in the poorest performing region – which then advanced to the 2nd best revenue management performance of 23 regions in just two months
Identified and implemented new model in the regions contributing 75% of the revenue adjustments and write-offs
Trained and coached 20 employees as change agents to implement the new model and perpetuate improvements throughout the remaining regions
Of course, I would be happy to be a positive reference for you. Our experience with your team and the work we did together helped us take giant steps forward toward becoming a successful stand-alone company.
CEO, Regional Financial System Shared Services
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