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Medical University of South Carolina Selects McKesson’s Revenue Management System to Strengthen Financial Infrastructure

Once thought to be recession proof, hospitals are feeling the effects of today’s strained national economy. Reduced admissions, reimbursement shortfalls and a surge in uninsured patients are among the many ripple effects that threaten their financial security. These issues are magnified in academic settings, where patient care revenues not only fund operating costs and capital needs, but also support primary care networks, medical schools and research centers.

To remain competitive during these uncertain economic times, the Medical University of South Carolina (MUSC) is forging ahead with plans to replace its legacy revenue management systems with McKesson’s comprehensive, end-to-end solution, Horizon Enterprise Revenue Management™. By tightly integrating with MUSC’s existing clinical system, the solution will help the academic medical center improve its financial performance while providing better decision support throughout the care process.

“As we sought to improve our revenue cycle process, it was imperative that we invest in a system that not only streamlines those processes, but also elevates the already high-quality care that we provide to patients,” said Frank Clark, Ph.D., vice president for information technology and chief information officer at MUSC. “Having successfully partnered with McKesson in the past to implement an array of healthcare solutions, including our advanced clinicals, we’ve eagerly followed the development of Horizon Enterprise Revenue Management. Once fully deployed, we’re confident that we’ll be better equipped to address our most pressing revenue management challenges.”

Given their broad responsibilities in education, research and patient care, academic medical centers face significant financial pressures. One way to improve financial performance is to develop additional revenue sources, such as patentable research projects and continuing medical education programs. Another, more practical way is to reduce existing costs by eliminating inefficiencies in their financial information systems. From preventing claim denials to accelerating cash collections to tracking payor performance, Horizon Enterprise Revenue Management delivers sustainable improvements that help healthcare providers achieve peak financial performance throughout the continuum of care.

For example, administrative tasks previously performed after discharge, such as insurance verification and collection of co-payments, can be carried out during patient registration using Horizon Enterprise Revenue Management. This proactive approach enables healthcare providers to better manage cash flow by significantly reducing the time it takes to file a clean claim. In addition to shortening the payment cycle, this should also streamline patient interaction with the health system while dramatically improving workflow efficiency and productivity.

“By helping us streamline our revenue collection process, McKesson’s technology helps to ensure that we can deliver medical care that is both more efficient and more effective in meeting the needs of our patients,” added Clark. “McKesson’s in-depth knowledge of our strategic objectives, along with its leadership in revenue management solutions, will help us achieve our financial management goals while carefully navigating the rough waters of today’s economy.”

MUSC will begin implementing Horizon Enterprise Revenue Management later this year, thus furthering its vision of an integrated clinical and revenue cycle system across its multiple settings of care. As a result, the health system expects to achieve significant reductions in bad debt and the number of days in accounts receivable. In addition, MUSC predicts the solution will greatly improve staff productivity and overall customer service.

“Amid increasing capital and operational costs, healthcare providers like MUSC are under great financial pressure now more than ever,” said Duncan James, group president, Health Systems Solutions, McKesson Provider Technologies. “McKesson offers solutions that enable providers to achieve greater efficiencies in their revenue cycle processes. With those solutions we can help these institutions position themselves financially to preserve the quality of care patients deserve and overcome the current economic conditions to emerge more financially sound.”

About MUSC

Founded in 1824 in Charleston, The Medical University of South Carolina is the oldest medical school in the South. Today, MUSC continues the tradition of excellence in education, research, and patient care. MUSC educates and trains more than 3,000 students and residents, and has nearly 11,000 employees, including 1,500 faculty members. As the largest non-federal employer in Charleston, the university and its affiliates have collective annual budgets in excess of $1.6 billion. MUSC operates a 750-bed medical center, which includes a nationally recognized Children's Hospital and a leading Institute of Psychiatry. For more information on academic information or clinical services, visit www.musc.edu or www.muschealth.com.

About McKesson

McKesson Corporation, currently ranked 18th on the FORTUNE 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. McKesson is the longest-operating company in healthcare today, marking its 175th anniversary last year. Over the course of its history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, visit http://www.mckesson.com.

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