Healthcare Financial Resources (HFRI), a specialist in healthcare accounts receivable (AR) recovery and resolution management, has acquired California-based STAT Revenue, a leading provider of zero balance (closed) claims review and recovery services for hospitals and health systems.
The acquisition rounds out HFRI’s AR management capabilities by adding the final stage of claims recovery to the company’s portfolio of other back-end services. STAT Revenue’s team provides highly specialised, forensic-like reviews of zero balance claims to identify underpayments and recover lost revenue from government and commercial payers.
“We feel very fortunate to be aligning with an organisation of STAT Revenue’s caliber,” says Jerry Connelly, President and Chief Executive Officer of HFRI. “Their team of highly experienced and skilled individuals are experts in the complex and often difficult tasks associated with zero balance claims reviews. We look forward to working with this exceptional group and are excited about the added value this acquisition will bring to our clients.”
Connelly said that by comparing written-off claims to payer-specific contractual terms and policies, STAT Revenue typically can recover 1 per cent of net placements. “That may not seem like a lot, but the amount of revenue can be significant when you’re talking about write-offs that often reach hundreds of millions of dollars for large hospitals and health systems,” he says.
Kevin Lee, founder and Chief Executive Officer of STAT Revenue, says he is enthusiastic about helping HFRI extend its service offerings and is looking forward to the technological capabilities HFRI will be able to bring to bear in the zero balance review arena.
“We see major opportunities for synergy and convergence in partnering with HFRI, given there is no overlap between our two companies’ services,” Lee says. “I’m pleased our existing clients will now be able to benefit from the combined strengths of the two companies.”
As part of its zero balance review services, STAT Revenue also provides consulting and education to help clients uncover the root causes of recurring problems that can lead to denials and write-offs. Lee says the frequency with which payers change claims processes creates an ongoing risk for underpayments.
“STAT Revenue’s staff is our number one asset and the reason we’re successful,” he adds. “The primary concern I had in looking for a partner was that our team would be appreciated and retained, and I’m pleased to say that will be the case with HFRI.”
HFRI utilises proprietary intelligent automation and staff specialisation to efficiently process all claims, regardless of size or age, for hospitals nationwide. In addition to the company’s AR recovery and resolution capabilities, HFRI also provides denial management assistance by conducting root cause analysis and recommending process improvements to help decrease aged and denied claims going forward. PARA Healthcare Analytics, a division of HFRI, additionally offers market-based pricing tools, analytics, and consulting services that accelerate collections and improve margins for healthcare organisations. HFRI is backed by Housatonic Partners, a San Francisco and Boston-based private equity firm.