Baystate Home Infusion & Respiratory Services
Since Baystate decided to switch to Mediware Reimbursement Services in 1996, as its billing and collection partner, they have seen measurable results that speak for themselves in increasing their revenue and reducing bad debt.
Since outsourcing their billing and collections to Mediware, Baystate Home Infusion has been able to:
- Effectively identify billable goods and services for maximum reimbursement
- Serve 4,400 new patients since using Mediware
- Reduce DSO to 85+ days
Turning the Ship Around
In 1996, after nearly a decade in business, Baystate Home Infusion & Respiratory Services was struggling to stay afloat. So the hospital-based home infusion and DME supplier made the best fi nancial decision they could, which was to partner with Mediware Reimbursement Services, who helped turn the ship around and made an astonishing difference in a short period of time. With Mediware Reimbursement Services as its billing and collection partner, Baystate Home Infusion reduced bad debt, decreased days sales outstanding (DSO) and steadily increased revenue by identifying billable goods and services that had been overlooked in the past.
Today, Mediware Reimbursement Services is ingrained in Baystate’s business model and continues to produce outstanding financial results, including below-industry-standard DSO and bad debt. Mediware and Baystate have a true partnership, continually working together to find ways to increase revenue and reduce bad debt. Because Mediware services clients across the United States and has a large reimbursement staff solely dedicated to Baystate’s line of business, the home infusion and DME supplier has access to all of the latest information as it relates to reimbursement, so that the net result is a winning solution.
Righting the Ship
In 1995, the vice president of Baystate Health, a not-for-profit health care provider in western Massachusetts, gave Brian Simonds, RRT, BA, director of Baystate Home Infusion & Respiratory Services, a directive: “Turn this ship around!” Simonds knew he had his work cut out for him. Billing was being handled by the hospital’s accounts receivable department, and, although the staff were experts at in-patient billing, they lacked experience in complex home infusion billing. The company’s DSO was at an all-time high of 126 days, and a treasure trove of revenue had gone uncollected.
In September of that year, the company had to write off more than $180 thousand in bad debt. At the time, this amounted to almost one month of net revenue. So Simonds made a decision to outsource billing and collections to a company located in the western U.S. No improvement was realized; instead, bad debt continued to rise. Additionally, Baystate Home Infusion was going through a major software change. It was time for a new plan. Something had to be done to save the ship.
A Change is in the Wind
As it turned out, the new software vendor had opened a Massachusetts-based reimbursement division that comprised talented experts with significant home infusion experience. So Simonds made the decision to change reimbursement vendors, putting his trust in a partner who could help maximize collections and improve overall revenue.
The Mediware Reimbursement Services team was staff ed with well-versed industry experts whose goal was to ensure that every detail of every claim was attended to with precision, which Simonds knew would help his company reduce denials and increase cash flow. The plan was a smashing success! The DSO rapidly declined and, over the next several years, Baystate’s home infusion business grew 10 fold, from $200 thousand in net revenue per month to $2 million in net revenue per month. With the shipwreck avoided, Simonds and his team were able to focus 100 percent of their attention toward patient care and expanding their service offerings as well as extending geographic coverage and building strategic joint ventures.
Since April of 1996 when the partnership first began, Mediware Reimbursement Services has helped Baystate Home Infusion grow its bottom line, which now exceeds $22 million annually. Simonds has never regretted his decision to utilize an outside billing and reimbursement vendor, especially when auditors come looking for errors. With Mediware’s electronic documents and reports, Baystate Home Infusion staff always have instant access to all the information they need to respond to audit demands.
Mediware Reimbursement Services goes above and beyond to ensure accuracy during the billing process, which, in turn, makes each audit purely routine. Today, Baystate Home Infusion uses Mediware Reimbursement Services for its billing and collections for all three facilities that provide in-home respiratory, infusion therapy, sleep therapy, oxygen and durable medical equipment (DME) to more than 4,600 patients across western Massachusetts. The company has received the “Gold Seal of Approval” from the prestigious accrediting body, The Joint Commission. The partnership — built on trust, integrity and passion for the home infusion business — has helped Mediware Reimbursement Services grow its business as well.
About Baystate Home Infusion & Respiratory Services
Baystate is a JCAHO accredited home care provider of respiratory, infusion therapy, sleep therapy, oxygen, and durable medical equipment. Their dedication to uncompromising standards of excellence has yielded a high level of clinical satisfaction as evidenced by physician and patient surveys. Their state-of-the-art medical equipment ensures patients receive the most modern and up-to-date equipment as determined by each patient’s specific needs and/or lifestyle.