CASE STUDIES

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Full Service Outsourcing Project:

Home infusion company closed billing office due to staffing issues, aged AR, and payer problems. Outsourced entire billing/collection functions to MARS.

• Billing assignment = $1.6M in monthly revenue + $6M in outstanding AR – 30% Medicaid & heavily managed care (shared risk)
• YTD Collections = 116% of revenue

Outcome: Reduced DSO to 58 days (from 110 days) - reduced AR > 360 to 11% (from 21%)

Collection Projects:

Home Infusion company converted to a new operating system after being sold. AR neglected for 180 days.

• AR assigned = $4.7M / 75% > 180 days old – Federal & Managed Care Payers
• Total collections = $4.3M / 91% of assigned AR

Outcome: Reduced DSO - AR reserved @ 50% / $1.9M credit to bad debt recovery

Hospital based home infusion program was overstaffed with high DSO and large percent of AR > 360 days old. Heavily managed care with contract administration issues.

• AR Assigned = $8.2M (quarterly placements) – Managed Care & Medi-Cal payers
• Total Collections = $6.3M / 76% of assigned AR

Outcome: Client reduced staffing requirements and DSO

Bad Debt Recovery Projects:

Enteral AR all over > 360 days written off to bad debt

• AR Assigned = $1.5M – commercial payers (Midwest region)
• Collected = $700K /47%

Outcome: $700K credit to bad debt recovery

Home Infusion AR 100% > 360 days written off to bad debt.

• AR Assigned = $1.4M - commercial payers (Northwest Region)
• Collected = $900K / 64%

Outcome: $900K credit to bad debt recovery

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