Summary of Work:
Warbird deployed an interim CFO to assist our client with its operational and performance improvements at McLeod Health Clarendon. The engagement began with a complete assessment in which Warbird’s CFO reviewed existing performance improvement initiatives, met and interviewed key employees and conducted our own assessment to identify additional operational and performance improvement opportunities.
Background:
Our Client has an under-performing rural hospital and reached out to Warbird to assist them with a senior financial CFO that could support a turn-around effort with the team. The company is a community-based healthcare system, based in Florence, SC. The Company provides the full range of healthcare services and extends from the Midlands to the Coast along the border of North and South Carolina – serving more than one million people. The McLeod Health network is comprised of 7 hospitals with locations in Florence, Darlington, Dillon, Manning, Cheraw, Loris, and Little River. McLeod has also expanded into the Carolina Forest area of Myrtle Beach for patients looking for primary care and family physicians.
Areas of Focus:
Warbird’s engagement began with an assessment from which a list of action items was reviewed with management. This list was derived from the following components of a performance improvement plan: 1) Growth Strategy, 2) Operations Improvement Strategy, and 3) Facilities Strategy. Strategies were agreed to and performance improvement teams were created to focus on the following revenue and cost initiatives:
Revenue Initiatives included, but were not limited to:
– Clinical Documentation Improvement
– CPC Revenue Cycle Redesign
– System Revenue Cycle Improvements
– Chargemaster Review & Managed Care Contracting
– Pharmacy Chargemaster
Cost Initiatives included, but were not limited to:
– Labor Productivity
– CPC Cost Improvements
– Supply Chain, Drug Management and Benefit Redesign
– Outpatient Services
– Reduce Cost to Collect
Conclusion:
Operational and performance improvement initiatives implemented by McLeod Health Clarendon with Warbird’s help during the engagement will allow Clarendon to meet its proposed budget for the year.
Examples of engagement successes include:
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- Successful implementation of labor productivity system
- Reduced denials and improved billing processes, including reducing unbilled accounts
- Financial analysis conducted to identify and close unprofitable programs leading to financial improvement
- Errors were identified in emergency room coding which resulted in an increase in NPR