Family MedicineAustin, TX

Heritage Family Medicine: 32% Revenue Increase in 90 Days

How a busy family practice transformed their revenue cycle by addressing denial patterns and streamlining their billing processes.

Practice Overview

Practice Type: Multi-provider family medicine
Providers: 4 physicians, 2 nurse practitioners
Patient Volume: 12,000+ active patients
Monthly Claims: 2,800+ claims processed

The Challenge

Heritage Family Medicine was struggling with mounting claim denials and slow payments. Their internal billing team of 3 staff members was overwhelmed, leading to:

  • High denial rates: 12.4% of claims were being denied, well above industry average
  • Slow collections: Average 47 days in AR was impacting cash flow
  • Missed revenue: Wellness visits and chronic care management were under-billed
  • Staff burnout: Billing team spent most time on denials rather than prevention

Baseline Performance

74.6%
First-Pass Acceptance Rate
12.4%
Denial Rate
47 days
Days in AR
86.2%
Net Collections %

Our Solution

Week 1-2: Comprehensive Audit

We analyzed 6 months of billing data and identified the top denial reasons: missing prior authorizations (31%), incorrect wellness visit coding (24%), and inadequate chronic care management documentation (18%).

Week 3-4: Process Implementation

We implemented real-time eligibility verification, created wellness visit coding templates, and established CCM enrollment workflows. Provider education sessions ensured proper documentation.

Week 5-8: Active Management

Our team took over all claim submission and denial management while implementing systematic follow-up processes for aging accounts receivable.

Week 9-12: Optimization

We refined processes based on initial results, expanded CCM billing to eligible patients, and implemented automated denial pattern reporting to prevent future issues.

Results After 90 Days

95.8%
First-Pass Acceptance Rate
3.2%
Denial Rate
24 days
Days in AR
94.8%
Net Collections %

Key Achievements:

  • $78,000 additional monthly revenue from improved collections
  • $18,500 new monthly revenue from CCM billing implementation
  • 74% reduction in claim denials
  • 49% improvement in cash flow (AR days reduced by 23 days)
  • Practice staff redirected from billing to patient care activities
"The transformation has been remarkable. We're seeing consistent cash flow for the first time in years, and our staff can finally focus on patients instead of insurance problems. The CCM revenue alone paid for the billing service within the first month."
— Dr. Sarah Martinez, Heritage Family Medicine

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