Promise Healthcare Group Case Study

Client Showcase
Article Background

Accounts Receivable Cleanup Exceeds Expectations

Snapshot

TruBridge and Promise Healthcare Group set out to collect $25 million in accounts receivable in a challenging operational environment. TruBridge streamlined the process by consolidating patient data into a single system, leading to significant cost savings. The introduction of their Accounts Receivable Recovery Service, combining advanced technology with expert teams, proved to be a game-changer.

“TruBridge’s experience in the area of AR recovery, along with their professional but aggressive project plan, enabled them to exceed the goal and therefore exceed our expectations. We knew with the right partner we could generate higher recoveries on AR than a sale of it to a collections firm. TruBridge did that – and then some.”

Chris Goff

Managing Director of Corporate Finance and Restructuring

Challenge

Promise Healthcare Group LLC (“Promise”), an owner and operator of a variety of healthcare organizations, filed for bankruptcy protection in November 2018. As part of the bankruptcy restructuring, Promise engaged FTI Consulting (“FTI”), a global business advisory firm. During the restructuring, 18 locations were divested to several different buyers and, as a result, revenue cycle operations were closed and the billing staff was eliminated.

In many restructuring situations, accounts receivable (“AR”) can be very difficult to collect and therefore is oftentimes written off or sold
off to a collection agency for pennies on the dollar. However, FTI recognized that with the correct partner millions of dollars in accounts receivable could be collected.

Solution

The operational situation was very complicated. Detailed patient account information was located in multiple accounting systems, supporting paper records were scattered throughout multiple locations, and there were no legacy revenue cycle employees remaining.

Operational challenges notwithstanding, TruBridge and FTI agreed on an aggressive accounts receivable collection goal of $25 million.
To be most efficient in achieving the aggressive collections goal, TruBridge first needed all patient accounting data located in one
system, versus the existing three legacy systems.

Although data conversions are difficult, TruBridge quickly converted all patient data to a sister company patient accounting system. The benefits were mutual in that TruBridge had one efficient system serving as a source of truth for all information, while Promise experienced cost savings by eliminating three legacy systems and related maintenance fees.

With one system, TruBridge moved quickly to implement a propriety Accounts Receivable Recovery Service. The service is a combination
HFMA Peer Reviewed® RCM software technology and a dedicated team of RCM experts that applied best practices to all billing and
collection procedures.