Resurrection Health Care Transforming Document Processing with Intelligent Data Capture

Transcription

1 Resurrection Health Care Transforming Document Processing with Intelligent Data Capture

2 Today s Guest Speaker Robert Banwart Director of Accounts Payable Resurrec'on Health Care Company Experience: Sun Healthcare Group Sandia Na7onal Laboratories Shakespeare Oil Company Walgreens KraB Foods Educa'on: BS Accoun7ng and MBA

3 Resurrec'on Health Care Profile Resurrec7on Health Care is a family of Catholic, not- for profit, healthcare services. Profile: Founded 1981 Merged on November 1, 2011 with Provena Health (a similar size hospital system), crea7ng the largest Catholic health care system in Illinois. FY2011 Net Revenue: $1.42B FY2011 Net Income: $90M Days Cash on Hand: 212 Employees: 11,579 Hospitals: 6 Licensed Beds 1,973 Facili'es: eicu Senior Care Facili7es: 8 Re7rement Communi7es: 4 Home Health Company Behavioral Health Network Employed Physician Network Hospice Company Medical Residency Programs University (Nursing/Health Informa7cs Degrees)

4 A Mandate for Change Healthcare Reform aims to drive down cost Consolida7on of hospital systems Increased rate of employed physicians Increases in efficiency Upgrades to IT infrastructure Adop7on of new technologies Relief of administra7ve burdens on opera7onal management and staff

5 Accounts Payable before Automa'on (Jan 2011) Staffing 18 2 / 3 Hourly FTEs 1 Exempt Staff 2 Supervisors 1 Director Transac7on Volume 980 transac7ons per day including: Invoices, Check Requests, Employee Expense Reimbursements Pa7ent Refunds, Garnishments Vendor Master File - 18,500 Automa7on McKesson Pathways Material Management MicrosoB SQL Server Enterprise Edi7on 13% EDI (PO) 87% paper: (45% PO and 42% non- PO) 22 2 / 3 FTEs 53 invoices/fte/day 87% Paper No other automa7on, specifically no imaging/data capture, B- to- B payment card, PCard, ACH, or e- invoicing

6 Evalua'on Process RFP process ini7ated Solu7on alterna7ves E- invoicing ruled out; not 100% solu7on Outsourcing ruled out; total life7me cost significantly higher McKesson (EMC Cap7va) Ricoh (Kofax/OnBase) Brainware Vendor onsite visits Evalua7on criteria Consistent across all vendors/solu7ons Detailed and comprehensive matrix of factors

7 Evalua'on Process Cross func7onal evalua7on team of management and staff Vendor Bakeoff Custom, live demonstra7on by each vendor 100 representa7ve sample images Access to PO database and vendor master file Brainware Results 94% data extrac7on and 24% STP on unseen documents Results hampered by imaging quality on certain documents, internal forms, and duplicate vendors in VMF These documents correctly kicked out for manual inspec7on Only Brainware was able to demonstrate the capability of processing transac7ons in a touchless fashion.

8 Accounts Payable with Automa'on (Dec 2011) Staffing 10 hourly FTEs* 1 exempt staff 2 Supervisors 1 Director Transac7on Volume 850 transac7ons per day including: Invoices, Check Requests, Employee Expense Reimbursements Pa7ent Refunds, Garnishments Vendor Master File - Cleanup 8,500 ac7ve 10,000 inac7ve Automa7on Brainware Dis7ller on SQL Server EE McKesson Pathways Material Management 90% electronic today; on the way to 99% ê 30% é 60% ê 77% 22 2/3 FTEs 14 FTEs 53 invoices/fte/day 85 invoices/fte/day 87% Paper 10% Paper * Note: 2 2/3 staff reduc7on due to sale of two hospitals, 6 staff reduc7on due to automa7on

9 Brainware Dis'ller Implementa'on & Performance Processing performance to date: PO- invoices 95% field- level data extrac7on Up to 45% straight- through- processing (STP) Implemented non- PO end of October Combined PO/Non- PO: 86% field- level data extrac7on Up to 25% straight- through- processing (STP) Addi7onal performance tuning in early December with expecta7on of the following: PO- invoices at 90% or greater STP More than 50% STP overall

10 Brainware receives invoice (scan, , fax) PO Invoice Process with Brainware Dis7ller determines if PO# is on invoice No Invoice is classified as NO PO & follows NO PO process Dis7ller verifies PO # is valid Straight Through Processing All data matched? No From invoice receipt to pos7ng in ERP with no manual interven7on PO # is valid & Workflow matches invoice data to the PO Invoice stops in Dis7ller for Verifier to reconcile invoice image and Dis7ller data All data matched/ reconciled? Brainware sends to ERP (McKesson PMM) for match/pay

11 Brainware receives invoice (scan, , fax) Dis7ller determines if PO# is on invoice Eliminates: Filing, re- filing, matching, re- filing PO Invoice Process with Brainware Invoice routes to AP WF Analysts for correc7ve ac7on No All data matched? Invoice is classified as NO PO & follows NO PO process PO # is valid & Workflow matches invoice data to the PO Dis7ller verifies PO # is valid All data matched? No Invoice stops in Dis7ller for Verifier to reconcile invoice image and Dis7ller data Eliminates: 94% of manual data entry Improves: Audit trail and creates consistent discrepancy resolu'on No AP routes invoice to Purchasing agent for assistance; e.g.: - Missing line - Uniden7fiable line - Uniden7fiable PO Purchasing performs required ac7on All data matched/ reconciled? Brainware sends to ERP (McKesson PMM) for match/pay No Improves: Ability to expand supplier base with discount terms Purchasing FORWARDS invoice back to AP staff AP reviews and performs required ac7ons All data matched? No

12 Brainware receives invoice (scan, , fax) No- PO Invoice Process with Brainware Dis7ller determines if invoice is Non- PO AP Verifiers match image to input data & confirm rou7ng if necessary Eliminates: Manual invoice inquiry forms via inter- office mail A Eliminates: Reten'on of paperwork by facili'es Approver receives no7ce they have invoice to approve/code Eliminates: Return mail and data entry, and related 'me delays Approver rejects to AP for data correc7on, or archives transac7on Approver approves/codes invoice (forwarding to reviewers or higher level approvers is op7onal) Valid GL code iden7fied on invoice Asen7on to values are matched Deliver to values are matched Provides: Enhanced account coding A AP WF Analysts determine correc7ve ac7on Invoice is corrected and/or Approved Creates: Visibility into outstanding invoices for accruals No AP determines appropriate approver Brainware sends transac7on through RHC valida7on interface to ERP (PMM) for payment

13 Lessons Learned Project Management Project Management Old adage you don t know what you don t know holds true Give yourself 7me large projects take longer than you think Make sure you ve aligned with execu7ve sponsors Focus on achieving early wins Resurrec7on Health Care PO transac7ons Keep working toward the Vision Iterate and communicate to keep people on track Manage expecta7ons Internal IS support will be on cri7cal path More than any other resource Insist on involvement from all cri7cal stakeholders

14 Lessons Learned AP Automa'on AP Automa7on Eliminate any prior assump7ons about how your process should work Start fresh and op7mize for automa7on Let the experts provide guidance Automa7on does not fix latent process issues But it does expose them! Check excep7ons carefully when flagged Vendor database integrity is crucial Staff roles will necessarily change - Shepherd the change within your organiza7on From: data entry and paper handling To: analysis and excep7on handling Brainware s sales claims regarding extrac7on accuracy and processing effec7veness were accurate

15 Enterprise Search Brainware Globalbrain

16 Brainware Globalbrain Brainware Globalbrain Enterprise search applica7on Highly scalable Enables simple search of structured and unstructured data such as e- mail, asachments, OCR d images, PDF, MS Office documents, and over 400 other formats Enables Resurrec7on to retrieve previously scanned documents, including check copies, old invoices and more Enables 7mely review of all physician payments Document Archiving From: 7- year physical offsite storage To: Electronic archive (6- month physical storage)

17 Compliance Stark Act

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