Preview

Sutter Health Care Case Analysis

Powerful Essays
Open Document
Open Document
2359 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Sutter Health Care Case Analysis
Sutter Health Cheryl Poole ACC 281 Accounting Concepts for Health Care Professionals
Instructor: Nyalambi Mulwanda
December 17, 2012

In 2006 Sutter Health began the process of trying to find a process that would increase its upfront collections from self-pay patients. Sutter Health started with its patient account representatives, collection, and other areas of the central business unit to transfer many of the back end process to registration. Was the approach that Sutter Health took helpful? This paper will show the reasons, methods taken, and the results that Sutter Health took to improve their bottom line and make them one of the most effective in the country. In 2006, Sutter Health, one of Northern California 's largest providers, committed to giving its patient financial services staff on both the front and back end the necessary tools to improve patient collections. The financial report gave insight to how Sutter’s plans to implement a new way of collection for the front end to run effectively. To make the norm, the staff began working towards transferring back end functions to the front end (Souza, M. & McCarty, B. 2007). This paper will illustrate the steps taken, and the results of the training and new collection processes that were successfully in making the Sutter Health Approach one of the most effective. Sutter Health is a not-for-profit network. Sutter Health along with the communities they serve decided to join together to help ensure that they would be here for the next generation of physicians and hospitals in Northern California. Serving Sacramento area for more than half a century, Sutter Medical Center, Sacramento first began operation in 1923. The original facility, known today as Sutter General Hospital, was a private, nonsectarian hospital incorporated by a small group of physicians. The first satellite hospital in California, Sutter Memorial Hospital, opened in 1937. In an effort to increase



References: http://www.mckesson.com/en_us/McKesson.com/For%2BHealthcare%2BProviders/Hospitals/Hospital%2BInformation%2BSystems/Hospital%2BInformation%2BSystems.html http://www.sutterhealth.org/about/index.html http://www.healthcarefinancenews.com/news/keys-successful-point-service-collections-program http://www.beckershospitalreview.com/hospital-management-administration/five-tips-on-point-of-service-collections.html  Edmonds, T., Olds, P., McNair, F., & Tsay, B. (2010).  Survey of Accounting (2nd ed.).  New York: McGraw-Hill Irwin. ISBN: 9780073379555 Souza, M. & McCarty, B. (2007).  From bottom to top: How one provider retooled its collections [electronic version]. Healthcare Financial Management. 61(9). 67-73.  Retrieved from ProQuest.

You May Also Find These Documents Helpful

  • Better Essays

    References: Edmonds, T., Olds, McNair, & Tsay (2010). Survey of Accounting. (2nd ed.). USA: McGraw-…

    • 925 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Sutter Health is a non-profit community-based healthcare system. It is based in Sacramento, Northern California. The healthcare system serves patients and families where the healthcare providers join resources and share expertise to develop and advance the quality of healthcare. The non-profit network initiated an interface with the intention of developing revenue collection of the healthcare facilities that would be collected from self-pay patient (Souza & McCarty, 2007). The traditional payment processing system had disadvantages that delayed the process of effective revenue collection of the healthcare facilities. The limitations of the processing system were as a result of the lack of accessibility to precise information in the accounts. The Patient Financial Services staffs were not in a position to get real-time information that would aid in accessing the financial and operational indicators of the healthcare facility (Souza & McCarty, 2007). There was also ineffective and inefficient performance measures in the healthcare facilities. The centers of service provision were patchy. There were also issues with the upfront collections. In order to address these…

    • 2418 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    Sutter Health Case Study

    • 349 Words
    • 2 Pages

    I am writing in response to an announcement recently posted on the Sutter Health employment opportunities web site. As you can see in my resume, I currently hold an Associate Degree in Nursing and graduated last May 2013 from Kauai Community College, School of Nursing. I passed all exams including my final exam with flying colors and also had hands on clinical training before I started out my career in nursing. I have also had a specialized training to become a cardiac nurse which includes basic life support and cardiac life support training.…

    • 349 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The role of finance in Health Care Systems, Inc. as a not-for-profit hospital is to support the provision of high quality care on a financial level. “In other words, firms may use not-for-profit status to commit themselves to provide quality by constraining their own incentives to reduce (unobserved and noncontractible) quality in favor of profits.” (Chang & Jacobson, 2010). The financial information for not-for-profit hospitals is primarily used by the donors, members, creditors and/or anybody that provides the resources for the hospital. These are considered external users who all have common interests in the organization. These common interests assess the following:…

    • 1265 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Patton Fuller

    • 878 Words
    • 4 Pages

    Finance, understanding how it affects the smallest business to the largest organization, is the origin to financial success in businesses. According to Gitman (2006), finance is the art and science of managing money. Virtually every individual business and large organization, Be the organization for profit or non-profit, depends on the rates at which these entities earn, or raise money, and the rate at which they spend or invest these earned monies. Understanding these financial processes will enable the financial manager, or even the non-financial managers to more effectively interact with financial personnel, processes, and procedures.…

    • 878 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Hcr/210 Week 6 Checkpoint

    • 266 Words
    • 2 Pages

    There are a few differences and similarities among small, medium, and large facilities concerning the organization of patient records and in how they handle loose reports. I have noticed that most facilities prefer that their loose records are permanently anchored in their charts, which makes sense to me because it prevents the loose reports from being misplaced and lost. However, the different sizes of facilities tend to organize patient files differently according to each particular facility’s policies. The most popular methods of organization that I have seen include chronologically, form numbers, report type, and category.…

    • 266 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    Sutter Case Analysis

    • 2710 Words
    • 11 Pages

    One of the key problems that Sutter Health was experiencing was that each facility acted as an independent “island” of information. Due to the numerous operating and accounting systems it was impossible to obtain data and reports in the same format from every location. There were no common practices within the organization. (Hummel,…

    • 2710 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    The HCS 405 week 1 financial terms worksheet throws light on some of the most basic concepts of the healthcare business. Understanding health care financial terms is a prerequisite for both academic and professional success. The health care business helps the nation by providing the building blocks that the citizens need to live a successful and healthy life. The worksheet is intended to ensure that the students understand some of the basic terms used in the business world of the health care industry. The purpose of HCS 405 individual and team assignments is to make the students aware about the numerous strategies employed in the financial and other departments of a health care sector.…

    • 1032 Words
    • 4 Pages
    Powerful Essays
  • Better Essays

    Sutter Health Approach

    • 2276 Words
    • 10 Pages

    Souza, and McCarty. (2007). From the Bottom to the Top: How One Provider Retooled Its Collections. Healthcare Financial Management, 61(9), 66-73.…

    • 2276 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    Hca 270 Ratio Analysis

    • 2503 Words
    • 11 Pages

    This course is designed as an introduction to the terminology, processes, functions, and financial reports commonly encountered in health care operations. This course introduces the concepts of basic managerial financial functions, such as budgeting, reimbursement methods, and the responsibilities of health care financial management.…

    • 2503 Words
    • 11 Pages
    Satisfactory Essays
  • Good Essays

    An effective medical office financial policy is one that both staff members and practice patients can easily follow and understand. Patients need to understand their obligations and staff members need to know what is expected of the patients. All possible situations should be addressed by a good financial policy. This includes financial arrangements and payment plans, payments for services not covered by the insurance company, and a variety of other circumstances. The basic elements of an effective policy should inform patients how particular situations will be handled. Collection of a patient’s copayment, deductibles and any past-due balances should be addressed; as should payment for services that are not covered by a patient’s insurance company. An effective policy should address how a practice handles prepayment for services they will provide and also any possibility for payment arrangements of unpaid balances on a patient’s account. If a practice offers charity care or discounts to patients with low incomes/financial need it should be stated in the financial policy. Finally, a practice’s financial policy should state their accepted forms of payment such as cash, checks, money orders, and credit or debit cards.…

    • 400 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The basic elements of an effective medical office financial policy are that it must be easily to follow for both staff members as well as patients. These policies should be explained to staff and patients so that each understands what is expected of them. These policies should include explanations for the patient as to how the practice is going to handle the following things. The collection of copayments, deductibles, and past-due balances, financial arrangements for unpaid balances, charity care or use of a sliding scale for patients with low incomes, payments for services not covered by insurance, prepayment for services, day-of-service discounts or discounts to patients with financial need, acceptance of cash, checks, money orders, and credit or debit cards, special circumstances for automobile accidents and nonassigned insurance. When these things are supported by clear and precise office procedures a financial policy can not only improve the payments that are received it can lead to less unpaid bills. When these policies and procedures are not followed by the staff of a medical practice it can lead to patients not having a clear picture of what is expected of them and also them not paying their bills when they are due. In order for a medical practice to have a financial policy that is effective it needs to be understood by all of the parties involved.…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Proper, precise, and ethically sound financial management and reporting is required of all healthcare organizations. According to Wisconsin Government (1994), “agencies are required to have an effective financial management system as a condition of receiving federal funds. Federal and state rules and regulations establish several criteria that the financial systems of agencies receiving funds must meet” (Basic Elements of an Effective Financial Management System, para. 1).…

    • 962 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Health Care

    • 769 Words
    • 4 Pages

    Cited: Cleverley, W. O., Song, P. H., & Cleverley, J. O. (2011). Essentials of Health Care Finance Seventh Edition. Sudbury: Jones & Bartlett Publishing.…

    • 769 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Medical office procedures support financial policies by using a practice management program (PMP). The PMP uses keyed in information to update a “day sheet” that summarizes all transactions made in a 24 hour period. These day sheets are used by medical staff to create a patient statement which is a printed breakdown of how much a patient owes on their account. The breakdown may consist of deductibles, coinsurance, and fees. When a statement is entered into the PMP, clarity along with accurate information helps the patient to understand their bill and pay on time. The PMP office procedure supports the policy with staff members that are either professional or administrative (McGraw-Hill, 2008).…

    • 445 Words
    • 2 Pages
    Satisfactory Essays