UAMS Turns Corner, Slashes Annual Loss

by Mark Friedman  on Monday, Oct. 4, 2010 12:00 am  

A Navigant spokeswoman didn't return a call or e-mail to comment if a five-page report was common.

Still, UAMS had to go back to the legislative committee to get additional approval to spend more money on the firm, which it did in April, Taylor said.

The moves with Navigant and UAMS seem to be paying off. The hospital posted net income of $2.2 million in March and $2.9 million in April.

Navigant assisted UAMS in improving its billing procedures, Goodhand said.

UAMS now makes sure it gets pre-authorization from its patients' insurance carriers before performing any non-emergency procedures, she said.

"If we don't do that in advance, then sometimes we don't get paid," Goodhand said.

Navigant also helped ensure the medical procedures are properly coded so UAMS receives payment from the insurance company as quickly as possible. Navigant also pitched in to help reduce a billing backlog from $33 million to $16.6 million, Goodhand said.

"The backlog doesn't mean that we weren't going to bill and get that money," Pierson said. "This is just cleaning up so bills are moving through faster."

Goodhand said Navigant also was able to help UAMS renegotiate its contracts with medical suppliers. She said Navigant had contacts across the country and knew how to get the best prices on supplies.

As a result, UAMS is projected to save $10.2 million to $15 million on its supply chain for the fiscal year that ends in June, Goodhand said. She said UAMS had already seen a savings of $2.5 million so far for the current fiscal year.

UAMS has continued to eliminate positions, which is something Navigant hasn't helped with, said the CFO Goodhand.

"We don't pay them any fee for helping us reduce [positions]," she said. UAMS didn't want to give Navigant an incentive for doing that, she said.

 

 

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