New Generation Of Financial Information Systems Makes Crunching Numbers Faster And Easier
Below is a MRR and PLR article in category Finance -> subcategory Other.
New Era of Financial Information Systems: Enhancing Efficiency and Speed
In recent years, financial information systems (FIS) have undergone a significant transformation, evolving from basic support systems to comprehensive integrated solutions. These advanced systems now manage everything from payroll to accounts receivable and revenue cycle management. This evolution hinges on the integration of disparate databases into a unified data source, allowing for multi-level data mining.
Recognizing the Importance of Data Mining
The critical role of data mining became clear to executives at James Edmund Scripps Wellness in San Diego. Initially managing six separate databases, they transitioned to the Dawn Approach Fiscal Handler by Eclipsys Corp., leading to remarkable improvements.
James Edmund Scripps operates five acute care facilities with nearly 1,400 beds, two medical groups with 14 outpatient clinics, a home health agency, and a health plan. Their annual revenue averages $1.35 billion, a marked improvement from significant operating losses in 2000 and 2001, when losses totaled approximately $26 million and $22 million, respectively. A key strategy for recovery included revamping charging and reimbursement methods.
Vice President David Cohn explained, “We shifted from capitated risk to fee-for-service risk.” Additionally, the organization updated their FIS, installing an enterprise-wide system across their facilities.
Achieving Efficiency and Improvement
Significant gains came not only from new software but also from process improvements, like recovering underpayments from third-party payers. “We analyze underpayment trends and develop strategies with our payer partners,” Cohn noted. In 2003, they collected 9% more in underpayments compared to 2002, totaling over $15.4 million. Tax charge-capture audits of over 100,000 accounts resulted in more than $10 million in additional charges.
Monthly cash collections in 2004 exceeded the previous year by $10.4 million, while net income between 2001 and 2003 increased by $44 million, thanks to enhancements in charge capture, coding, and tax revenue recovery. Operating profitability also rose by $40 million during this period.
In an effort to reverse losses from 2000 and 2001, Scripps established a system-wide cycle steering committee and multidisciplinary teams to ensure alignment and coordination. Weekly meetings covered topics like coverage and discharge obstacles. They also restructured claims processing, forming a dedicated team at Kaiser’s regional center, resulting in a $6 million reduction in claims backlog.
Outsourcing unpaid commercial claims allowed staff to focus on high-value claims. “We concentrated on appeals by collaborating with payers and refining contracts,” said Cohn.
System Upgrades and Future Plans
Upgrading to the Dawn Approach Director version 11.3 significantly enhanced data access and analysis. A major contributing factor was meeting EDI transaction set requirements mandated by HIPAA.
With Medicare representing 35% to 40% of their business, streamlining this process was crucial. Due to HIPAA deadlines, a web-based version of Eclipsys software was initially bypassed in favor of a UNIX platform-compatible character version. However, plans for upgrading to version 11.4 are already underway.
These advancements in financial information systems are revolutionizing data processing, achieving greater efficiency, and setting new industry standards.
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