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Running head: SUTTER HEALTH 1 Sutter Health: A Case Study Elizabeth Moran ACC 281 Accounting Concepts for Health Care Professionals Dr . Griffin April 14 , 2019
SUTTER HEALTH 2 Sutter Health: A Case Study In this paper we will be discussing the changes that California’s Sutter Health Care Facility implemented to help increase the amount of payments collected . Sutter Health was a non-profit organization that was struggling to collect payments and had an increase in costs . The health care system experienced an increase of self-pay accounts due to the lack of health insurance . The organization was in a position where they were unsure how they would continue to pay their staff and continue to keep their doors open to the public . Finding a solution that can help to successfully increase payments from patients can help to reduce the amount of unpaid accounts . Educating patients every given chance about their responsibilities and what the financial policies are can help to increase the amount of money that is collected from self-pay patients . This situation prompted Sutter Health to reevaluate the way that their collections were being handled . Sutter Health was determined to reevaluate its collections and revenue cycle to increase payments collected from patients and now they are one of the largest operating health care providers in Northern California . Throughout this paper we will explore what Sutter Health did right , what could have been done differently , and how they were able to go from struggling to successful in a short amount of time . In 2006 Sutter Health was determined to change its strategy to increase the amount of dollars collected for patient accounts and decrease the days of outstanding account receivables (A/R) debt . The increase of outstanding A/R debt and decrease of cash collected from patients was due to health plans having higher deductibles and higher copays as well as
SUTTER HEALTH 3 an increase of self-pay patients . According to Souza and McCarty (2007) , “Nearly 47 million Americans are uninsured , but it’s an erroneous assumption that none of these people can afford to pay for their health care . More than 80 percent of uninsured people come from working families , and many may have the resources to pay for some or all their health care-- if only someone would ask them to” (pg . 67) . Finding out that many people would pay if they were only asked prompted many changes to be made and staff to be retrained . Once Sutter Health committed to improving the amount of patient collections , they investigated the best way to implement changes . Sutter Health found that Patient financial services (PFS) and registration staff needed training and relevant information to correctly complete the job .

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