Billing delays at Powder River Surgery Center cost health system up to $200k in Medicaid payments

Computer issues at Gillette, Wy.-based Powder River Surgery Center delayed some Medicaid bills more than a year, costing Gillette-based Campbell County Health between $150,000 and $200,000 in missed Medicaid payments, the Gillette News Record reports.

Here's what you should know:

1. The health system acquired the surgery center in 2016. The center has been plagued with unanticipated computer issues, which delayed some Medicaid bills for more than a year, resulting in their denial.

2. Additionally, some Medicaid and Medicare patients didn't receive their bills until six or seven months after receiving medical treatment.

3. The delays were only present for Medicaid or Medicare patients.

4. Powder River Surgery Center was a standalone ASC until it was acquired by Campbell County Health in 2016. Because of the acquisition, the ASC needed to submit regulatory paperwork to be recognized as a hospital-based surgery center. The entire process took about six months.

5. After the change, the surgery center's billing software was unable to send out bills with the new hospital-based surgery center designation. The health system had to upgrade the center's billing software, which took 11 months to complete. The surgery center billed manually during that time.

6. The software has been in place for nine months, and the surgery center is close to closing the gap in its billing cycle.

7. Despite the delays, the surgery center has increased systemwide revenue since it was acquired. Since the acquisition, the surgery center has made $6.97 million over their year and a half partnership

8. CCH anticipates it'll make up the entirety of its investment in the surgery center back by 2021.

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