Financial and Operational Challenges at Health First Urgent Care
This case study highlights the challenges faced by Health First Urgent Care in managing their revenue cycle, particularly around claim processing, accounts receivable (A/R), and operational inefficiencies.
Challenges Identified
High Aging A/R:
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Over 42% of accounts receivable exceeded 120 days, risking major revenue loss.
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As of August 2022, outstanding A/R was $1.62 million, with critical overdue balances.
Claim Processing Delays & Denials:
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Delays in posting ERA payments (dating back to August 2022).
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Frequent claim denials caused by:
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Eligibility issues
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Missing medical records
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Timely filing limits
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Bundled services
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Non-coverage due to medical necessity
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Financial Metrics
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Average monthly billing charges (last 6 months): $1.21 million
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Average monthly collections: $905,000
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Gap between billing & collections highlights inefficiencies in the revenue cycle.