Houston-based Nobilis Health entered into an in-network contract at Plano (Texas) Surgical Hospital with a large national payer.
"We anticipate the implementation of this contract to significantly improve Nobilis' systemwide contract revenue mix, with the Texas market alone expected to increase its in-network revenue exposure to approximately 55 percent of annual facility revenues," said CEO Harry Fleming. The contract brings the company a step further to becoming a comprehensive health system focused on in-network facilities.
The payer agreement is effective Oct. 15.
During the company's second quarter conference call, Mr. Fleming addressed Nobilis' long term goals of driving improved profitability, stating: "We have to continue growing Nobilis' in-network revenues; continue expanding Nobilis' continuum of care; and to diversify the strength in Nobilis' revenue platform."
He also said the company will pursue merger and acquisition opportunities if they meet certain criteria, including expansion of in-network revenues. The company hired Melinda Taylor as senior vice president of revenue cycle management earlier this year to work toward that end.
"Intensive scrutiny of existing billing processes alongside selective re-education of revenue cycle management personnel on best practices has already led to a 7-day reduction of our DSO period," she said. "With the implementation of this in-network contract at Plano Surgical Hospital, we expect to see additional significant improvement in the DSO figure by the end of the year."