Executive Summary
A large multisite gastroenterology practice experienced rapid operational growth that placed increasing pressure on its revenue cycle infrastructure. While production remained strong, aging receivables expanded, denial volume increased and month-to-month performance variability limited financial visibility.
Leadership recognized that the organization required a more disciplined, scalable revenue cycle framework to match its operational complexity.
Advantum Health was engaged to strengthen governance, stabilize performance and restore financial predictability. Within 12 months, the practice reduced AR days from 54 to 30, lowered AR aged over 120 days from 33% to 18% and achieved zero denial rates for consecutive months.
The Challenge
As the practice expanded across multiple sites, revenue cycle complexity increased. Clinical production remained strong, but financial infrastructure did not scale proportionally. Denial activity and aging variability reduced financial visibility and constrained cash performance.
At the time of engagement, AR days measured 54, denial rates ranged from 11% to 15%, and 30% to 33% of total receivables aged beyond 120 days. Total AR balances approached $9 million.
Leadership required a disciplined, performance-driven revenue cycle framework capable of restoring financial control without disrupting clinical operations.
Solution
Advantum implemented a structured revenue cycle stabilization plan designed to restore financial control and eliminate performance variability. Clear ownership was established across every stage of the revenue cycle.
Core initiatives included:
- Standardized workflows across front- and back-end functions
- Implemented root-cause denial prevention prior to submission
- Prioritized high-value and aged AR through stratification
- Established daily KPI reporting aligned to financial outcomes
- Defined payer follow-up timelines with clear accountability
Results
Within 12 months, the practice achieved:
- AR days reduced from 54 to 30
- Claim denials rate reached zero
- Total AR reduced by $6 million
- AR over 120 days reduced from 33% to 18%
“We have enjoyed a tremendous return on our investment with Advantum. We fully expect the same results in the coming year due to improved performance in AR collections, prior authorizations, reduced denials, and lower operating cost due to increased automation and lower staffing costs.” – Chief Executive Officer, Independent Gastroenterology Practice
Conclusion
Sustained revenue cycle performance requires disciplined execution and measurable accountability. Advantum Health conducts structured operational reviews to identify where financial performance can be improved. Contact us to find out how we can help your practice gain similar results.
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