PMRG was engaged by the practice to solve a chronic and escalating cash-flow problem. The amount of draw the physicians were able to take from the practice was and had been diminishing. During the initial assessment phase of the project, we calculated the value of clinical services being provided and determined that approximately $300,000 annually, or 25% of the expected annual income, was being lost. Our analysis found the practice was losing:

1. $80,000 a year due to inaccurate CPT coding

2. $200,000 in flawed business process

a. Claims rejected and not followed up
b. Services provided that were not billed
c. Uncollected co-payments
d. Patient statements not handled in a timely fashion


3. $20,000 a year in fees below payor allowables

Physicians chose to retain PMRG to upgrade the computer system and take over the billing. PMRG worked with the staff and physicians to implement recommendations gleaned from the initial analysis. By the eighth month of PMRG managing the billings and receivables, practice income had increased an average of over 25% - adding an additional $25,000 to $30,000 a month in collections.