By Brad Passell, VP, Strategic Accounts & Client Value
In a recent webinar, we dived into the world of recovery audits in healthcare finance, with industry experts Judy Kogut-O’Connell, Rene Gurdian Jr, and Candice M. Pytlik sharing their valuable insights. As a participant and moderator, I was thrilled to be part of this exploration into the challenges, risks, and expected benefits of integrating recovery audits into healthcare finances.
The discussion began by addressing the challenges in healthcare, encapsulated by the four “Cs”: Change, Compliance, Complexity, and Capacity. These challenges create financial instability, leading to what we termed “dark data” – a difficult-to-access and interpret realm. The recovery audit emerged as a strategic tool, shedding light on this dark data, providing decision-making insights, strategic guidance, and avenues for cost-saving.
We explored the implementation and anticipated outcomes associated with recovery audits. Judy, Rene, and Candice, each offering a unique perspective, provided valuable insights into challenges such as financial discrepancies, pricing errors, and contract mismatches. The overarching goal was to recover funds, strengthen controls and processes, and gain profound insights into financial intricacies. The panelists stressed the importance of addressing issues like duplicate payments and meticulous management of vendor master data, particularly during mergers and acquisitions.
The experts highlighted the fundamental role of recovery auditors in examining financial records to detect and correct errors and overpayments. Challenges during implementation, such as time and resource concerns, were discussed. However, the panelists emphasized that with a deep understanding of the audit’s purpose and potential benefits, these challenges can be overcome.
The true highlights of our discussion were the insights and success stories shared by the panelists. Metrics and Key Performance Indicators (KPIs) took center stage for measuring the benefits and impact of recovery audits. For example, Candice emphasized the ongoing nature of the audit, highlighting the percentage of recovery against total spend.
As we concluded, our focus shifted to the future of recovery audits. Integrating technology at the beginning of projects for early detection of discrepancies in invoices emerged as a key focus. The panelists envisioned a future with a spotlight on the line-level details and contract matching for further enhancements.
In the dynamic world of healthcare finance, the insights from Judy, Rene, and Candice, coupled with the transformative capabilities of SpendMend, have paved the way for understanding the power of recovery audits. These audits not only recover funds but also serve as beacons of illumination, guiding organizations toward improved processes and future financial resilience. Here’s to the continuous journey of unlocking insights and innovations in the ever-evolving landscape of healthcare finance!