Case Study
Achieving a 98% Collection Rate
See how an ABA practice increased its collection rate from 78% to 98%, boosted cash flow by 22%, and reduced billing errors with Theralytics.
01
Client Overview
The client specializes in Applied Behavior Analysis therapy and behavioral health services for individuals with developmental disabilities. Their team of Board-Certified Behavior Analysts and mental health professionals are committed to high-quality care, aiming to improve clients' quality of life through evidence-based practices and personalized support.
To support their operations, the client integrated Theralytics ABA practice management software to automate major operational portions of their practice, including scheduling, data collection, billing and reporting workflows, within a single unified system.
Results
Results Achieved
Measurable improvements delivered through a more consistent revenue cycle.
- 22%
- Business Cash Flow Boost
- 16%
- Decrease in Billing Errors
- 95%
- ABA Industry Average
- 98%
- Final Collection Rate
- 3%
- Above Industry Average
- over $50,000
- Annual Savings
02
Goal
The primary goal was to enhance the client's revenue cycle by increasing their collection rate from an initial 78% to a higher, more sustainable level. This improvement aimed to ensure financial stability, reduce billing errors, and align the client's performance with or above industry standards.
03
Challenges
Previous challenges
- Significant difficulty in securing timely payments from a specific payor, leading to prolonged claims processing and frequent denials.
- Inefficient and outdated billing and follow-up procedures that failed to address payment issues effectively.
- Increased labor costs due to higher staff hours dedicated to resolving payment discrepancies and managing claims, which still resulted in suboptimal outcomes.
- Strain on the organization’s budget and diversion of resources from strategic, growth-oriented activities due to reliance on labor-intensive processes.
- Inadequate use of ABA reporting features in their billing system, leading to poor tracking and analysis of revenue cycle data.
- Missed revenue opportunities due to the lack of comprehensive data management and timely intervention.
04
Solutions
Solutions for tackling the root cause
Enhanced Follow-Up Protocols
Introduced automated and structured follow-up protocols for claims, reducing delays and improving payment timelines.
Data-Driven Approach
Leveraged reporting features within the billing system to track revenue cycle metrics, enabling the identification and correction of missed revenue opportunities.
Owner Training and Efficiency
Trained owner on the new processes and reporting tools to reduce manual errors and enhance efficiency.
Dedicated Payor Management
Implemented a targeted strategy to manage and resolve specific payor-related issues, including customized follow-up routines and escalations.
Monitoring and Continuous Improvement
Established a system for ongoing monitoring and iterative improvements to maintain efficiency and adapt to any new challenges that arose.
05
Results
Savings of over $50,000 annually by choosing to go with Theralytics.
Significant Increase in Collection Rate
The collection rate improved from 78% to 98%. Above Industry Average Performance - The new collection rate exceeded the ABA industry average of 95% by 3%, showcasing exceptional performance.
Enhanced Cash Flow
The improvements led to a 22% boost in business cash flow, strengthening financial stability and operational flexibility.
Reduction in Billing Errors
A 16% decrease in billing errors was achieved due to more consistent and efficient processes.
Labor Cost Savings
Reduced reliance on manual labor for claim management, allowing staff to focus on strategic tasks and improving overall productivity.
Improved Financial Predictability
Enhanced tracking and reporting practices provided better visibility into the revenue cycle, facilitating informed decision-making and financial forecasting.
Sustainable Process Improvements
The client established robust billing practices and a proactive follow-up system, contributing to long-term sustainability and continued operational efficiency.
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