Parallon Case Summary

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In the past Parallon has had limited opportunities for en masse analysis. Requirements for analysis include unit number, patient number, client information, payor and payment information, and general logic. Improving Parallon’s accounts receivable process required a standardized analysis process. Accounts eligible for analysis do not have Medicare as a primary insurance, and secondary was present. All accounts must be in accounts receivable or collections agency status. Organizing accounts into three specific categories assisted in developing decisions based on account criteria. Account separation methods included accounts without a primary or secondary payment processing, accounts above threshold, and accounts with a denial code. Conflicting processes result in the inability to review denial accounts through this standardized process. Placing thresholds on financial classes limits the amount of errors possible due to contract agreements and rates. Payment percentages determine if accounts meet payment threshold requirements for analysis.
Account payment percentages range from 0% to over 100%, depending upon the payor. Payment percentages determine effective collection processes and contract efficiencies. All accounts with a payment percentage of 0% were considered to be below threshold if the …show more content…

Thresholds were originally set at account balances of a 3:1 ratio for larger versus smaller clients. Facilities with larger revenue were considered below threshold if the patient’s total account balance was 3 times that of the facilities generating smaller revenues. As a result of this process ratios have remained consistent at 3:1 but overall balance thresholds were reduced. This meant that original balance thresholds were $3000 and $1000, but were reduced to $1500 and $500 due to more efficient uncollectable accounts receivable

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