Increasing Collections by 33%: How a Healthcare Provider Used KPO to Reduce Aging AR

Client: Regional Healthcare System 

The client is a multi-facility regional healthcare system that needs specialized support in Revenue Cycle Management (RCM), specifically Accounts Receivable (AR) Follow-up. 

The Challenge: The Drag of Aging Accounts Receivable 

The client was experiencing significant financial pressure because critical medical claims were routinely falling into the financially damaging 90+ day aging bucket, straining cash flow and requiring high-effort, low-return internal staff time. 

The core problems were: 

• Financial Bottleneck: A substantial amount of revenue was tied up in delayed claims, crippling cash flow and increasing Days Sales Outstanding (DSO). 

  
  

• Internal Bandwidth Crisis: The small, in-house billing team was overwhelmed. They were forced to prioritize high-volume, easy fixes over the complex, high-effort claims stuck in the older buckets, lacking the dedicated time and specialized expertise required for effective appeal, documentation, and recovery of old debt. 

  
  

• Lack of Prioritization: Without a systematic approach, staff often chased smaller, less valuable claims, leaving the largest, oldest revenue leaks unaddressed. 

  
  

The system urgently needed a focused solution to aggressively target and recover claims before they became functionally uncollectible. 

The Solution: Dedicated, High-Value AR Recovery 

NewVision partnered with the healthcare system to deploy a specialized KPO team focused exclusively on resolving the most complex and aging claims. This was a targeted AR recovery effort designed to maximize return on effort. 

The solution involved three key steps: 

1. Technology Integration and Prioritization 

The KPO team integrated seamlessly with the client's existing Electronic Health Record (EHR) and RCM software. Using advanced analytics, they immediately prioritized the entire 90+ day claim pool based on value, payer, and likelihood of recovery. This ensured the team focused only on high-value claims with the best chance of successful collection. 

2. Expert Follow-Up and Appeal 

A dedicated team of AR analysts, specialized in navigating complex payer portals, denial codes, and appeal processes, began aggressively pursuing the targeted claims. Unlike the client’s internal generalists, the KPO analysts had the time and expertise to execute multi-step follow-up procedures, including re-submitting claims, handling complex underpayments, and preparing detailed appeal documents. 

3. Continuous Feedback Loop 

The KPO team established a constant feedback mechanism with the client’s internal billing managers. This collaboration identified root causes (e.g., recurring documentation errors or specific payer issues), allowing the internal team to implement preventative changes to stop future claims from aging. 

Results & Impact: Cash Flow Acceleration and Process Improvement 

Within nine months of the engagement, the dedicated KPO AR recovery effort yielded substantial financial and operational improvements: 

• 33% Increase in Collections:

  The focused effort resulted in a 33% increase in collections from the 90+ day aging bucket, directly injecting hundreds of thousands of dollars in previously trapped revenue into the client’s cash flow. 

• 18% Reduction in DSO:

  The successful recovery of old claims significantly reduced the overall Days Sales Outstanding (DSO), reflecting a much healthier, more efficient revenue cycle. 

• Internal Staff Re-Focus:

  Internal billing staff were freed from the tedious task of chasing old debt. Their time was successfully re-invested into current claims and crucial front-end process improvements, leading to a 20% reduction in initial denial rates. 

  
  

• Sustained Quality:

  The continuous feedback loop ensured that the processes causing the aging AR were corrected at the source, transforming AR follow-up from a reactive headache into a proactive, high-return function. 

  
  

The partnership successfully accelerated the client's cash flow and provided a sustainable model for managing complex, aging claims, supporting the financial health of the entire healthcare system. 

Ready to stop revenue leaks and accelerate your healthcare cash flow? 

Contact Us at 📩 engage@newvisionmgmt.com or

Call us at 📞 +1 210-858-6660