Revenue Cycle Management Project

You are the CEO of a local for-profit hospital. Your job is to oversee the implementation of a new Revenue Cycle Management initiative to improve the revenues of the organization over 1, 5 and 10 years. Your objective is to review the below three options for consulting firms and select one option to implement. Explain why your hospital will implement this solution based on the course learnings. Reference the Revenue Cycle Continuum in your memo and how you would manage a smooth implementation of this initiative. The expectation is your response will include how you would manage incremental headcount, system implementations etc.

No new asset to be created on Balance Sheet cost of implementation is to be recognized as an operating cost. Note all other expenses should remain constant YoY calculate the items in pink within the excel workbook. Subscription expense will be a monthly charge each month based on the product selected

Consider the following: Improvement of revenues over 1, 5 and 10 years? Initial investment cost and would it be worth it to implement a more expensive option if revenues were greater over 10 years coupled with error reductions in billings?

Errors Breakdown:

Services Provided on Yearly Basis:

Year	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10
Services Provided	1000	1020	1050	2000	2500	2750	3000	3400	3600	4000
Expected Errors in billing *prior to implementation of an option below	100	110	150	180	220	240	270	330	340	360

Option 1:

Cost of Implementation $100,000.00

Subscription Cost: 1,000/month for 10 years

Net Patient Services Revenue Increase YoY 5%

Year 1

Year 5

Year 10

This option includes incremental headcount in the Billings Department and the implementation of a system that would track and prevent errors upon billing coding. If you implement this option, billing errors would be reduced by 20%.

Option 2

Cost of implementation $50,000

Subscription Cost: 2,000/month for 10 years

Net Patient Services Revenue Increase YoY 3%

Year 1

Year 5

Year 10

This option involves using existing headcount, which will require additional training. The system implementation would track and prevent errors upon billing coding. If you implement this option, billing errors would be reduced by 15%.

Option 3

Cost of implementation $250,000

Subscription Cost: 1,500/month for 10 years

Net Patient Services Revenue increase YoY 7.5%

Year 1

Year 5

Year 10

This option includes incremental headcount of two people and additional system training. The system implementation would track and prevent errors upon billing. If you implement this option, billing errors will be reduced by 25%. In addition, this option will provide the organization with additional system protection using the third-party cloud services.

Memo:

Requirement: Create a memo and discuss in one-page the option you selected, why you selected this option, and how it will impact the overall Revenue Cycle Process at your organization. Reference key learnings from the textbook, lectures, and additional resources provided in your response.

Content and Presentation will be allotted 10 points. You should be creative in the structure of your one-page memo and provide effective and concise reasoning for the option you would like to implement at your organization. Grammar and spelling will be analyzed and represents 5 points of the overall project. The expectation is to rely on key learnings from the course and implement into the memo. You will also be providing the excel workbook with key calculations. The remaining 5 points is discretionary but revolves around the integrity of content. I will be analyzing and comparing student responses. This assignment is individual based and should not be completed with other students