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Accounts receivable: 28 days improvement in DSO with higher resolution rate


Client Background and Context

  • One of the nation’s largest hospital group, with more than 150 acute care centers, behavioral health facilities & ambulatory centers having 3 central business offices (CBOs). Client was – 
    • Looking for extended business partner to manage their AR > 30 Days, Denial Management and Secondary Billing
    • Looking to streamline front office and business office functions, and implement workflow tools and best practices to improve collections rate


  • Implemented proprietary tool iAR to build resolution strategy and dedicated team for  backlogged denials (TFL/AFL – tollgates were implemented)
  • CARC and RARC Analysis for frequently denied claims and implemented Coding Helpdesk
  • Deployed 250 in-house FTEs including subject matter experts

Impact delivered – Performance

  • 28 days improvement in overall DSO from 58 to 30 days
  • 5 days TAT achieved for all denials (14 -> 5 days)
  • 12% Reduction in front office and billing office denials (19% -> 7%)

Impact delivered – Financial

  • 15% Uptick in collections within 6 months of Go Live ($72 M -> $81 M)

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