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Healthcare Scoring System Allows Hospitals To Increase Charity Care
Date:12/16/2009

ATLANTA, Dec. 16 /PRNewswire/ -- Medlytix, a national healthcare consulting firm, reported success this week in reaching a key half-billion dollar milestone - the total amount of money that its hospital clients have provided in financial assistance to more than a half-million patients nationwide by doing a better job of properly classifying charity care - in less than two years.

"We're proud that each of these hospitals enhanced their bottom lines and still were able to significantly increase their level of charity care contributions," said Medlytix CEO Arvind Krishnaswami. "This is a win-win for the hospitals and the communities that they serve."

Medlytix employs predictive sciences and a custom-scoring solution that identifies a hospital's most likely "presumptive charity-care" patients. Presumptive charity care is the process of proactively classifying patients as charity-eligible on the basis of limited financial information.

Under new federal IRS rules, hospitals are required to separate their delinquent patient accounts into two categories: charity care or bad debt. Thus, hospitals run the risk of writing off thousands of dollars from misclassified patients who may have been able to pay their medical bills if given enough time and assistance. A hospital may still pursue payment from a bad-debt account but forgoes any payment from a patient designated as charity care.

In the past, hospitals have based charity-care decisions more on intuition because of little to no financial information provided by their patients. Prompted by new regulations and increasing economic pressures, more of these hospitals are exploring independent financial scoring systems, similar to those historically used by banks and the auto industry.

While many of these systems involve generic scoring solutions developed from national population datasets, Medlytix utilizes a customized model that is much more comprehensive a
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SOURCE Medlytix
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