ATLANTA – Aug.7, 2013 – Puget Sound Institute of Pathology (PSIP) has partnered with McKesson Business Performance Services (BPS) to reduce billing expenses and gain access to comprehensive business support services. PSIP is a 15-physician group affiliated with seven hospitals and the oldest independent pathology laboratory in the Puget Sound region. BPS will provide a full range of revenue cycle management capabilities: documentation education, coding, claims submission, denial management, accounts receivable management, regulatory compliance assistance, customer service and custom business intelligence and analytical tools.
McKesson will also deliver marketing support, including a detailed market analysis designed to identify growth opportunities for the practice in Seattle and the surrounding region. As part of its business support services, McKesson will assist the group in strategic planning and the identification of optimal, long-range business strategies.
Stu Adelman, chief executive officer, said PSIP made the decision to shift from in-house billing to McKesson in order to reduce overhead and strengthen compliance.
“It has become increasingly difficult to execute in-house billing effectively as costs continue to rise and compliance becomes more complex,” Adelman explained. “Given the falling reimbursements we’ve seen industry-wide, as well as the coming ICD-10 coding transition, we felt it made sense to transition now to an external billing vendor that could help meet the growing challenges we face.”
Adelman added that McKesson’s business service capabilities, including extensive marketing support, also were important considerations. “The combination of reduced billing cost, better compliance, improved collections and a variety of business support services was impossible to match,” said Adelman. “We’re excited about working with McKesson to strengthen our practice.”
Pat Leonard, president, BPS, said established pathology practices like Puget Sound are increasingly turning to practice management partners for help in the current market. “For even the most experienced and sophisticated laboratories, the challenges surrounding both billing and compliance are significant,” Leonard said. “We’re looking forward to drawing from our experience to assist PSIP in solidifying their financial foundation and building a framework for future growth.”
Leonard added that BPS and its focus on pathology represent an important component in McKesson’s Better Health 2020 strategy. The comprehensive initiative is designed to provide physician groups with the capabilities needed to reduce costs, improve financial performance and successfully manage complex payment models.
