Piedmont Medical Laboratory gained the ability to confidently calculate net revenue and maximize collections
Piedmont Medical Laboratory (PML) was founded in 1991, but by the mid-2000s its growth was being hampered by a manual billing/AR system and lack of electronic connectivity to its clients. PML tackled the connectivity issue, but the billing challenges still needed to be fully addressed. "The legacy billing/AR system was all manual operation and tracking in terms of bad debt, days outstanding etc. with few third party payer interfaces, so we had definite concerns about maximized collections, remittances and adequate reporting," said former PML CEO Joe Skrisson. "We could not get reports that dealt with medical necessity concerns, rejections and other critical areas that would ensure compliance and increase cash flow," said Skrisson. "That prompted us to look for a more automated solution."
After reviewing several options, PML selected XIFIN. The combination of outsourced functionality and in-house control appealed to the selection team. "XIFIN's Web-based solution provided instantaneous updates, decision support, comprehensive reporting and other important automation functionality," said Skrisson.
Following the implementation of the XIFIN solution, PML experienced a 10 percent increase in cash recovery and a significant drop in AR days outstanding. The results and the ongoing reporting functionality allowed PML to look forward from a position of stability and growth. "The reports broke things out very conveniently by client and payor, which allows you to analyze what marketing/sales told you the account was going to generate verses what it actually produced," said Skrisson. "This gave us the ability to look at our client portfolio and identify those clients that needed improvements."
Based in Virginia longtime XIFIN client Piedmont is a full-service clinical lab. In mid-2009, PML was acquired by Sonic Healthcare, Ltd. (ASX:SHL). Piedmont's strong financial performance and credible balance sheet achieved through the use of the XIFIN system was instrumental in the buyer's confidence in its purchase of the $11 million annual revenue laboratory. Parent company Sonic Healthcare changed the company's name to Sunrise Medical Laboratories in 2013.
"XIFIN's Web-based solution provided instantaneous updates, decision support, comprehensive reporting and other important automation functionality."