Reducing AR

Through Analyzed Trends and Identified Issues

Children’s Hospital AR Problem

A large children’s hospital, repeatedly ranked as one of “America's Best Children's Hospitals,” had a rapidly increasing AR problem. Despite having a positive cash flow and a rapidly growing business line, the hospital could no longer afford to let their AR rise.

Disparate Systems with No Corrective Action

Front end nuances, manual follow up processes, and a shortage of employees available to handle the workload presented tasks that were becoming extremely time-consuming and hard to complete. The client simply didn’t have the bandwidth to keep up with the day-to-day operations and allocate the resources necessary to identify the problems, let alone solve them. The decision was made to bring Vee Healthtek in to correct backlog issues, identify operational inefficiencies and put the processes in place to correct the issues and set the stage for future success.

Finding the Systemic Issue

Childrens Hospital - Graph

Vee Healthtek did a thorough review of current processes within the hospital and identified operational nuances that were hindering employees from meeting their production requirements. Procedural best practices were implemented within the hospital and additional resources were allocated. Within three months, outstanding AR decreased by over 50% and reversed the gradual trend of AR dropping to the 90+ aged buckets.

Identifying, correcting and realizing the reduction in A/R took more than working through the usual timely filing and appeals limits. Throughout this process, Vee Healthtek was able to uncover and help the client fix:

  • Contractual adjustments that were not posted across multiple payers
  • Fee schedules in place were corrected for the major commercial payers
  • A system was implemented that ensured appropriate NDC codes for Medicaid
  • Identified and applied proper non-covered codes for Medicaid that were left open in the system


With the root cause identified and best practices implemented, the client saw immediate benefits that had a direct financial impact on their bottom line. Together as a team, a comprehensive revenue cycle process was created that encompassed and established accountability for the team which can consistently adapt to and overcome daily challenges. Not only did this situation create an immediate impact financially, it opened the door for additional work that already has created the foundation for future success.

Michael Carnahan

Meet the Author

Michael Carnahan - Senior Director of Client Services

Michael Carnahan serves as Vee Healthtek’s Senior Director of Client Services. In this role, his focus is on cultivating alignment with new business development efforts, managing strategic accounts, and establishing communication channels with client leadership. Michael comes from Cerner RCM and has over 12 years’ experience in revenue cycle management and EHR integration with financial modules.