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Exceptional Coders | Innovative Technology

Health System Files for Bankruptcy Citing Revenue Cycle Vendor Issues

Posted by David Fong on May 14, 2019 4:15:28 PM

Washington-based health systemAstria Health, a Washington-based health system, filed for Chapter 11 bankruptcy protection earlier this month, as reported in Becker's Hospital Review. In its press release, the health system said it is facing a significant shortfall in cash flow due to issues with the company it contracted with to manage its billing in August 2018. Astria said the unidentified company failed to process a significant number of accounts receivable, leading to a backlog of unpaid claims, according to the Yakima Herald-Republic.

 

Before filing for bankruptcy protection, Astria Health had said its electronic health record system and the operations of its revenue cycle had contributed to financial and operational challenges for the organization.

 

Astria plans to use the bankruptcy process to restructure its finances, enter into a plan of reorganization with its creditors and replace its billing company, and aim to emerge from bankruptcy by the end of 2019.

 

The pre-bill work from accurate coding supported by the clinical documentation provides for a vital start in timely medical claims processing. By coding within a 48 hour turnaround time, minimizing coding denials, and having a robust billing process, providers can bill insurance and patients appropriately and quickly for faster reimbursements and out of pocket payments. By working with reputable companies like Aviacode, you can rely on coding efficiency and quality that meets and exceeds industry averages to deliver the necessary expertise to expedite cash flow.