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Adventist Health Achieves Financial Improvements and Advances Long-Term Revenue Cycle Strategy

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Huron partnered with Adventist Health (Roseville, CA) to deploy a comprehensive, sustainable approach to achieving revenue cycle improvements that were critical to advancing their long-term strategic vision. The effort was supported by employee training which drove lasting culture change and accountability. Financial results of $100 million in annually recurring benefit exceeded the project goal by more than 20 percent.

Challenge

As part of a broader effort to achieve its strategic vision, address future healthcare challenges and prepare for growth, Adventist Health sought to standardize, modernize and consolidate revenue cycle operations across the enterprise.

Approach

Results

$100.5M in annual recurring income statement benefit

$18M one-time balance sheet cash benefit

6-dayreduction in system-wide A/R days prior to system conversion

Huron worked with Adventist to implement significant revenue cycle improvements that increased net revenue, minimized avoidable write-offs, enhanced system capabilities and instilled a culture change that promotes accountability. The project delivered significant financial benefits and established a foundation to build upon as Adventist steps strategically into the future.

Optimizing the revenue cycle. Working with over 500 leaders and staff across multiple sites, Huron designed and implemented its multi-faceted Revenue Cycle solutions. Powerful workflow and reporting tools, along with significant training, drove widespread and sustainable culture change and significant net patient revenue improvements. The project also helped Adventist establish a long-term operating model that is adaptable to future challenges.

Increasing revenue. Huron’s Revenue Cycle solutions yielded over $100 million in annually recurring income statement benefit, surpassing the project’s goals by more than 20 percent. Key activities included: normalizing account, transaction and denial data across multiple sites and using Huron’s tools to drive transparency and accountability; implementing a comprehensive A/R strategy that realigned staff to address high-risk accounts, while establishing tactics to address remaining account inventories; and implementing protocols to identify and resolve high-risk accounts.

Enhancing system capabilities. The implementation of a revenue cycle governance structure increased systemness and accountability across the Adventist enterprise. Huron’s approach to governance balances local and corporate influence, ensuring decision-making processes are consistent and inclusive of key stakeholders. In addition to driving sustainable improvement, these steps created a platform that strengthened decision-making processes around information technology.

Standardizing processes. Standardization of workflows and processes increased transparency and accountability across the Adventist system. The implementation of a consistent A/R management approach reduced system-wide A/R days by six. Further automation and standardization of write-offs, denials management, pre-service insurance verification and reporting generated additional financial benefits and prepared Adventist for an impending HIS conversion.

Ensuring sustainable improvement. Huron deployed resources across 13 sites in four states, working side-by-side with staff and management to ensure processes, tools and training were implemented consistently across the enterprise. The Huron team worked with leaders at each site to drive performance initiatives that were specific to the local environment. These activities delivered a strong base of knowledge and training — driving sustainable results long after the end of the Huron engagement.

Adventist Health is a faith-based, not-for-profit, integrated healthcare delivery system with $3.8 billion in annual net patient revenue. Adventist operates 20 hospital and more than 150 outpatient facilities serving more than 80 communities on the West Coast and in Hawaii.

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© 2022 Huron Consulting Group Inc. and affiliates. Huron is a global consultancy and not a CPA firm, and does not provide attest services, audits, or other engagements in accordance with standards established by the AICPA or auditing standards promulgated by the Public Company Accounting Oversight Board (“PCAOB”). Huron is not a law firm; it does not offer, and is not authorized to provide, legal advice or counseling in any jurisdiction.