We don’t sell a data platform for financial success, but instead provide Strategic Advisory for the charge master anchored by the use of state-of-the-art financial software.
Our PinPoint algorithm discerns the statistical relationship among service line charges, volumes, individual service line profitability, payer contract reimbursements, and other key factors that determine financial success for hospitals.
PinPoint’s predictive pricing analytics will deliver the following immediate benefits for your hospital:
- A more rational charge master by reducing contractual allowances strategically (bringing charges closer to costs)
- More transparent and defensible pricing that helps grow brand acceptance
- Greater net revenue where brand and service line profitability are strong
- Actionable intelligence that uncovers ‘hidden’ nuggets of opportunity in select service lines
- The ability to position the hospital financially for greater sustainable growth during the transition from FFS to value
We’ll work with you to create an optimum top-line, net revenue budget and then deliver ongoing incisive financial reporting that monitors performance.
Our predictive pricing analytics will enable you to tweak service line charges as-needed during a fiscal year to avoid an adverse financial impact. We can do this within the existing Board-approved rate of adjustment, too.
Relationship-building is a key ingredient of our Strategic Advisory, but it is the ability to use statistics to discern the relationships among multiple variables that produces our algorithm’s powerful predictive pricing analytics and its many financial benefits.
Let’s talk broad strokes about your hospital’s financial needs, wants, and goals, including how you want to position your hospital for even greater success in your market. We use a detailed questionnaire that serves as a starting point for this.
Our job is to make sense of your data, enabling you to model different possible service line charge adjustments that in turn will enable you to hit all financial targets and satisfy the hospital’s strategic financial objectives.
You already know which service lines are strong in brand recognition and profitability; and you know which service lines offer potential growth, yet calibrating optimum charges for all service lines for a new fiscal year can be a daunting task.
We’ll apply our PinPoint algorithm to your revenue usage reports to create a detailed analysis of charge and payer data. This will reflect:
- How to set charges for service lines where brand is the strongest
- How to increase volumes and profitability in service lines that are now your most profitable
- How to set charges for service lines where brand is emerging as strong in your market
- How to set charges for service lines that now generate a loss for the hospital
- How to reduce contractual allowances strategically where possible and as-needed
- How to position your hospital in its market more favorably to meet financial needs and objectives
- How to set charges for services where you have recently recruited key physicians
- How to set charges in any service line where Best Practices have been changed
Much of the push now is on the expense side of the budget with a specific focus on reducing the expense of labor and supplies, and this was before Amazon announced its entry into the hospital supply arena.
Most CFO’s have begun to look at the inherent risk in value-based payer agreements, yet the reality remains unchanged. Most revenue still flows from FFS reimbursement and the charge master will remain relevant as long as your hospital has some fee-based services.
As a result, how you choose to set charges still matters.
Our Strategic Advisory empowers CFO’s to make key strategic changes with confidence. Plus, our process is straightforward, timely, and as easy as 1, 2, 3.
What are your hospital’s financial needs, wants, and strategic objectives?