Success story: Memorial Hospital and Manor

Revenue cycle outsourcing (RCO)

Situation and challenges

In 2016, management at Memorial Hospital and Manor faced a difficult reality: revenue cycle challenges were keeping them from fully meeting their commitments to their patients, staff, and community. Issues included:

  • Total revenue cycle performance lagged industry standards.
  • Cost structure was suboptimal, and cost reductions were necessary.
  • Local talent and resources were limited.
  • Improvements were needed in compliance, patient satisfaction, and revenue protection.

Actions and solutions

Management selected Xtend Healthcare to help stabilize the hospital’s revenue cycle. In June 2016, we began work in specific areas, providing accounts receivable management, resolution assistance, and billing support for a limited number of financial classes with discharge dates greater than 30 days. By November, we expanded our scope to support additional revenue cycle elements.

By late 2018, it was clear our partnership was working and that a deeper relationship could bring even more success. In December, we implemented a full revenue cycle outsourcing (RCO) agreement, transitioning all health information management (HIM), coding, and business office responsibilities to us.

"Given the outstanding back office results that Xtend Healthcare initially achieved for us, it was an easy decision to expand our partnership. Now that they are applying their staff, expertise, and technology throughout our revenue cycle, we are enjoying a healthy, steady cash flow that’s helping us meet our commitments to our patients, staff, and community."

– Chief Executive Officer, Memorial Hospital and Manor


By late summer of 2019 — just eight months into the RCO engagement — the benefits of the expanded partnership were clear:

  • Increased net revenue by 3%
  • Accelerated cash collections, reducing A/R days
  • Reduced discharged not final billed (DNFB) and discharged not final coded (DNFC) balances
  • Eliminated billing backlogs
  • Overhauled billing work queues and streamlined patient experiences
  • Expanded access to our deep team of dedicated revenue cycle experts