Becker's Hospital Review

63 63 REVENUE CYCLE MANAGEMENT Difficult Collections Force Struggling Calif. Hospital to Revise Revenue Projections By Brooke Murphy S ebastopol, Calif.- based Sonoma West Medical Center has reduced its projected revenue forecasts as the hospital struggles to collect payment from patients and suffers large operational losses, reports the Press Democrat. The hospital is expected to report an operating loss of more than $600,000 for April. That's compared to an operating loss of $47,000 in March and $400,000 in February. Hospital executives are also taking a more conservative approach to payer reimbursement and patient collections. Specifically, the hospital has reduced the amount it expects to collect from patients from one-third of gross charges to 29 percent of patient charges. In its first six months as a licensed hospital, Sonoma West has amassed operating losses of $1.43 million. To get hospital financials back on track, Sonoma West will launch initiatives aimed at increasing gross revenue and improving patient collection efforts, hospital CEO Ray Hino told Press Democrat. n HHS Taps 6 Health Systems for Bill Advisory Panel By Brooke Murphy H HS has selected a number of leading health systems to serve on its advisory panel for the agency's "A Bill You Can Understand" challenge. HHS' challenge is part of a national effort to simplify the patient financial experience by re-conceiving hospital bill design. As part of the advisory panel, administrative leaders from chosen health systems will evaluate, test and implement winning design solutions from the contest. The following systems will serve on the panel: Providence Health & Services in Renton, Wash.; Cambia Health Solutions in Portland, Ore.; Geisinger Health System in Danville, Pa.; INTEGRIS Health in Oklahoma City, Okla.; The MetroHealth System in Cleveland; and University of Utah Health Care in Salt Lake City. "Sometimes solutions are as simple as a clean, universally formatted bill that clearly outlines what insurance covers and what the patient owes," said Rod Hochman, MD, president and CEO of Providence. "But sometimes solutions are more complex and require cross-industry collaboration. [HHS'] challenge is a great way to engage many experts to find solutions." n Oregon Hospitals Pledge to Give Patients Price Estimates in 3 Days By Brooke Murphy O regon hospitals took a step toward improved price transparency in May when hospitals promised to provide patients with cost estimates within three days of scheduling a medical procedure, reports The Oregonian. The initiative aims to give uninsured patients and those who are out-of-network a better idea of what the procedure will cost and prepare them for financial obligations. Each hospital in Oregon has agreed to provide estimates in three days. Oregon is among the first states in the country to adopt a state-wide cost estimates policy, Richard Gundling, senior vice president of the Healthcare Financial Management Association, told The Oregonian. The Oregon Association of Hospitals and Health Systems has launched a cost-estimates section on the Oregon Hospital Guide website to help patients find contact information for hospital billing departments. n Mosaic Life Care approves $16.9M in Debt Forgiveness By Kelly Gooch S t. Joseph, Mo.-based Mosaic Life Care has approved $16.9 million in debt forgiveness for 5,070 patients. The announcement was made May 24 by U.S. Sen. Chuck Grassley (R-Iowa), who released the results of his inquiry into Mosaic's bill collection practices. The senator was critical of Mosaic's billing tactics last year after seeing news reports that documented aggressive debt collection via lawsuits against Mosaic patients. "Tax-exempt hospitals cannot be in business to profit off of poor people who may not know what form to file," Sen. Grassley said in a speech on the Senate floor in announcing the results, according to a news release. "That is not what Congress intended to happen when we created the tax exemption. Now, thousands of people have a new lease on life, thanks to Mosaic's meeting its tax-exempt responsibilities." Sen. Grassley also said Mosaic hired additional personnel to assist low-income persons with filing for financial assistance, will no longer charge interest on accounts until final judgment and has extended its four-statement billing cycle to six. n

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