Vendor Management Services to Drive Real Economic Yield
As an industry, hospitals rely more and more on revenue cycle vendors–to gain economies of scale, get access to specialized resources, automate processes, and remain nimble in an ever-changing healthcare market.
The average hospital employs 10 to 15 revenue cycle vendors, with many employing 20 or more. These vendors include outsourcers, collection agencies, and bolt-on technologies which support patient access, health information management, care management, patient accounting, and ancillary revenue cycle departments.
Unfortunately, the return on this increased investment is often times underwhelming. Many revenue cycle leaders struggle to find the time or resources to manage their vendors to achieve better performance or navigate the market to find a best-fit alternative vendor.
Another major challenge for revenue cycle leaders is lack of access to the right data to truly know how their vendors are performing and how to get more from them.
That’s where Healthfuse comes in. We partner with hospitals to assist them in achieving best possible outcomes from their revenue cycle vendors. We develop and manage revenue cycle vendor strategies resulting in millions of dollars in economic yield for the hospital – typically, a 10-20% reduction in vendor spend and 20-30% increase in vendor performance.
This net yield typically amounts to 1-1.5% of annual net patient revenues.
A Vendor to Manage Vendors?
So why a vendor to manage vendors?
Many hospital CFOs and revenue cycle leaders often ask us how adding yet another vendor simplifies vendor management.
We don’t consider ourselves “vendors” in the traditional sense. Healthfuse is here to act as an advocate for hospitals and healthcare systems. Vendor management is all we do.
Each member of our leadership team has practical experience either on the vendor side or in hospital vendor management. We are experienced agents for the hospital, who work to improve and strengthen current vendor partnerships, select new vendors, and manage the vendor strategy to achieve and sustain optimal results.
In addition to deep experience, Healthfuse leverages smart analytics and statistics to manage the vendor strategy–from selecting the best-fit bolt-on technology to managing an outsourcer’s process.
We service smaller, single-entity hospitals earning above $50 million in annual net patient revenues, up to large healthcare systems and integrated delivery networks (IDNs) whose net patient revenues exceed well over $1 billion per year.
We’ve formed a cohort of hospitals which drives significant negotiating, benchmarking and knowledge strength. As this cohort grows, it gets stronger, delivering direct benefits to member hospitals.
Healthfuse launched in 2011 to assist hospitals in achieving best possible outcomes from their revenue cycle vendors. To date, Healthfuse has driven hundreds of millions of dollars in yield for hospitals and has never been terminated for failure to deliver results.
Our success is largely driven by our ability to create win-win partnerships between hospitals and vendors.
If we can’t drive significant measurable value for your hospital through improved vendor management, you don’t owe us anything.
Comprehensive Approach to Reducing Revenue Cycle Vendor Costs & Increasing Performance
Our revenue cycle vendor management program includes six services aimed at reducing vendor costs and increasing performance (collections, compliance, and service):
SLA & Best Practice Auditing
It’s not just about managing the outcomes; it’s about managing the process. Healthfuse leverages our AUTOAUDIT system to track 100% of outsourced accounts each week, allowing us to quickly identify red-flagged accounts – those not worked in compliance with service-level agreements, best practices, internal policies and/or governmental regulations.
Remediation & Correction
Coaching and improvement counseling at the account level drives improved outcomes. Red-flagged, or non-compliance issues, are immediately analyzed by our auditors, which we escalate to vendors for corrective action and prevention planning.
We ensure vendor inventories match hospital records and adhere to agreed-upon timelines. Additionally, each vendor invoice is audited for accuracy.
Executive-level vendor negotiations, based on VendorMetrics™ analytics, ensures the best possible contract terms for new and existing vendors.
Vendor Evaluation & Implementation
When the time comes to implement new vendors or replace underperforming ones, Healthfuse performs objective comparisons based on our VendorMetrics™ database to help you form lasting vendor partnerships.
We help budget for present and future vendor spend and performance by factoring seasonal trend forecasting and periodic adjustments.
Our program is built on the principles of analytics, consolidated vendor management and shared knowledge:
We leverage meaningful analytics and statistics to drive vendor accountability and improved outcomes. Our VendorMetrics™ engine stores historical performance data, pricing, and qualitative attributes from over 1,200 revenue cycle vendors serving more than 2,000 hospitals.
The purpose is two-fold – determine which vendors perform best in different markets and understand the practices which yield best outcomes.
If you have your eye on a vendor who we haven’t profiled, we will happily benchmark their services against relevant market factors.
Vendor Management Office
Our Vendor Management Office is a shared service center that acts as a single point of performance management and accountability over our hospitals’ revenue cycle vendors.
Our team is comprised of our general counsel and legal expertise, sourcing advisors, analysts, auditors, and other vendor management professionals.
The VMO will be your representative as we meet regularly with vendors to establish and review performance goals and address areas of concern.
When you partner with Healthfuse you will have access to the knowledge we aggregate. Every new hospital and vendor we add to our network adds new insights and lessons learned in revenue cycle sourcing, pricing and performance benchmarks.
Top-Performing Vendors Benefit from our Healthcare Portfolio
The Healthfuse program works because it is mutually beneficial to hospitals and the vendors who commit to providing the best service at the most competitive prices. Vendors who consistently meet or exceed performance goals will earn objective recommendations from us.
Vendors who perform best within specific segments will gain exposure to hospitals to which they are best matched.