Coral Gables-based Baptist Health South Florida announced it has signed an operating agreement with Chicago-based Navigant to create a new joint venture entity to provide revenue cycle management (RCM) services to healthcare provider organizations.
The joint venture will initially manage the revenue cycle operations of Baptist Health South Florida, but plans to expand in the future.
Baptist Health South Florida includes 10 hospitals, 50 outpatient and urgent-care facilities, a medical group and 40 physician practices. The not-for-profit has nearly 20,000 employees and more than 3,000 affiliated physicians.
The health system reported total revenue of $2.48 billion in 2017, up 4 percent from $2.38 billion in 2016. However, it had an operating loss of $31.3 million year-over-year. According to Baptist Health South Florida’s 2017 annual financial report, some of the financial pressure stems from late or unpaid bills. Baptist's provision for doubtful accounts increased to $410.1 million in 2017, up 34.3 percent from 2016.
The new company will combine Baptist Health South Florida’s staff and Navigant’s RCM expertise, innovative processes and technology tools. The new entity is expected to be operational in summer 2018.
“With the challenges and changes happening across healthcare, Baptist Health South Florida is focused on remaining financially strong and continuously exploring innovative partnerships,” Ralph Lawson, executive vice president and chief financial officer of Baptist Health South Florida, said in a statement.
“We are committed to improving the patient experience and developing more consumer-friendly systems,” Brian E. Keeley, president and CEO of Baptist Health South Florida, said in a prepared statement. “We selected Navigant, and its subsidiary Navigant Cymetrix, to partner with us because they bring deep industry knowledge, scale, and expertise in process and technology, such as machine learning and artificial intelligence, which will enable us to achieve efficiencies and create a more seamless experience for our patients. Baptist Health has remained fiscally sound, mission-driven, and an innovative leader as we continue to transform the way we deliver care. We believe this new organization will also provide opportunities for team members to grow in their careers and will bring new jobs to our local community.”
Julie Howard, chairman and CEO of Navigant, said, “As healthcare providers transition to a value-based payment system, there is a critical need for innovative solutions. Our move to create a new commercial entity with Baptist Health South Florida is a perfect example of our deep commitment to partnering with our clients, and to identifying unique pathways to add value. By relying on the services provided by this new venture, health systems will have the ability to direct their focus where it is needed most, on their patients and the health of their communities.”