Consulting Case Study 3: Large Publicly Traded PPMC

PPMC purchased and installed a new practice management computer system for over $25,000,000. The physicians in one of their large clinics were complaining that the business office was not doing an acceptable job of collecting the practice's revenue. The PPMC management found they could not respond to the physicians with objective quantitative data. They requested that PMRG work with the PPMC's programmers to develop adequate management reports and calculate a collection target against which to measure the business office's performance.

PMRG staff discovered that the computer system was installed in a way that prevented the obtaining of reports tracking payments from all sources against the original charge. Consequently, accurate payor-mix data could not be obtained. This practice that generated over $60,000,000 in annual charges could not determine who their "customers" were.

After working with the programmers, PMRG was able to generate a report that tied all payments to the original charges so that accurate payor-mix and gross collection ratio data could be obtained, the business office could be evaluated and the results could be communicated to the physicians.

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