Payment delay from Medicare and commercial insurance was having a significant impact on New Objectives’ financial performance. While revenue cycle management and billing companies implemented needed enhancements in claim submission, remittance times in third-party payment cycles were still causing downstream financial issues.
Using its proprietary technology platform, Iatric Technologies analyzed New Objectives’ historic third- party payer claim and payment data to determine how cash flow acceleration could provide financial benefits to their business. While an analysis of this depth is typically a lengthy, involved, and expensive undertaking, iTec delivered its results in one week, with no additional involvement from the provider beyond the delivery of claim and payment data, at no charge to the healthcare provider.
The analysis not only modeled the financial benefits that iTec’s cash flow acceleration program could deliver, it also illustrated opportunities for New Objectives to further enhance their billing and remittance operations.
“The initial financial analysis…clearly showed the impact the iTec cash flow acceleration program would have on our cash, it has also led to changes that have made our billing and claims processing procedures more efficient.”
John Santiago, Chief Operating Officer, New Objectives
John Santiago, Chief Operating Officer of New Objectives observed, “The initial financial analysis was invaluable. The more than 20 pages of information clearly showed the impact the iTec cash flow acceleration program would have on our cash, it has also led to changes that have made our billing and claims processing procedures more efficient.”
Upon seeing the substantial financial benefits that the program would deliver, New Objectives elected to commence daily advances. iTec facilitated an initial advance based on current outstanding Medicare and commercial insurance claims. iTec then initiated subsequent advances based on daily third-party payer claims submitted through New Objectives’ clearinghouse.
Mr. Santiago continued, “At first I was concerned about the amount of work we would have to do to participate in the iTec program, but then I learned that we didn’t have to change our existing procedures in any way. The advances and repayments are handled regularly without any involvement on our part.”
Transforming Cash Flow into Financial Flexibility
New Objectives now has access to the financial resources that allow for the negotiation of payment discounts from vendors, greater certainty in meeting future payroll and the financial flexibility to begin expansion into new markets. iTec and its supporting capital sources also offered emergency financial resources as the east coast of Florida braced for 2017’s Hurricane Irma.
Seeing the positive results in their own business, New Objectives recognizes the benefits that this solution can deliver for the south Florida healthcare community.
Mr. Santiago explained “We very pleased that we decided to participate in the iTec program, and several other providers that followed our progress with the iTec Cash Acceleration program are now interested in learning what the program can do for them.” Mr. Santiago further stated, “Not only is iTec’s platform preforming as promised, the responsiveness and helpfulness of the iTec team is outstanding.”
Putting Business Operations on Solid Financial Ground
- From third-party payments previously averaging 48 days to a significant portion of cash advanced within 2 days of claim submission.
- Daily cash advances at a competitive cost without impacting existing banking or financial relationships.
- Dynamic and accurate determination of reimbursement receivables true value in real-time.
- Improved insight into the financial performance of individual third-party payers, insurance plans and procedure codes.
- The ability to benchmark performance and changes in revenue cycle management processes.