In the above example, aggregate charges are running at 65% of the average local market level. This phenomenon of under‐pricing may be contributing to ongoing financial difficulty, as demonstrated within the Revenue Leakage column. On the contrary, over‐pricing may limit market share, when some simple adjustments might bring those patients back. Either way, via non‐compliant coding or faulty pricing, money ‐ potentially significant amounts ‐ will be left on the table.

Medical Recovery Services uniquely incorporates individual hospital contract rates and terms to provide net‐revenue level financial modeling of chargemaster changes. These prediction numbers are realistic and accurate.

Making Annual Chargemaster Reviews Affordable
The dichotomy between the benefit of a full annual chargemaster review with the cost‐prohibitive nature of performing that review is not lost. The Medical Recovery Services model offers the opportunity to obtain this high‐value service every year for a fraction of the standard industry cost rather than facilitating the need to reserve massive funding every three years or longer. The hospital could even expect to ultimately pay less over those three years than one major review in that same time period with less regard for a final, oppressive invoice.

Payment flexibility is imperative. Offering 3, 5, or even 10 months of Scheduled Interim Payments will further protect essential cash flow while securing the valuable services every hospital requires.

The economies of scale and relatively low overhead offered by Medical Recovery Services present a significant investment return. This, compounded with the flexibility of Scheduled Interim Payments creates the “perfect storm”: an opportunity to bring the benefit of vital “big‐city” services to Main Street America. Because the local hospital is frequently one of ‐ if not the ‐ largest local employer in small‐to‐medium sized towns, this model allows even the smallest hospital the chance to maintain a presence within communities who truly value and take pride in their local healthcare facilities as well as their local economy.

 

Medical Recovery Services

Founded in 2004, Medical Recovery Services is a Revenue Cycle firm dedicated to the financial viability of small, community and Critical Access hospitals. Solutions include Chargemaster Compliance/Revenue Management, Managed Care Contracting and Operational Support, Business Intelligence, Process Improvement, Business Office Redesign and Claim Audit and Recovery. Medical Recovery Services is based in Blue Springs, Missouri.

 

Chargemaster Reviews Performed Every 3‐5 Years Will Correct Compliance Problems and Identify Areas of Revenue Leakage

Every hospital understands the necessity of chargemaster reviews. However for small hospitals, the temptation to undergo the obligatory chargemaster review only every 3‐5 years is frequently driven by the general cost‐prohibitive nature of this service. Depending upon the organizational size and service line complexity, many consulting firms charge $50,000‐$500,000 to identify and correct expensive compliance problems and revenue leakage points.

 

The Medical Recovery Services Solution

The unique needs of small hospitals can be met through annual chargemaster reviews specifically designed to eliminate cost‐prohibitive project pricing, preserve cash flow through Interim Scheduled Payments and by providing ongoing personalized service as a reference source after project completion.