Success Stories

The Henry Ford Health System

Health system fortifies 340B compliance systems to safeguard reimbursements.

The challenge

Optimize patient assistance program (PAP) recovery activities for medications and devices for uninsured or underinsured patients.

Our solution
Implement the Pharmacy Healthcare Solutions (PHS) RecoveRx™ PAP solution, using a dedicated PHS representative to identify, create, submit and track applications for claims and appeals. 
 
The outcome
Improved cost recovery to support TMC's safety net mission.
  • Recovered more than $2 million in FY 2019
  • Exceeded year-one recovery projections by 195%
  • Recovered $78,718 retroactively in first year for care TMC provided the year before

Truman Medical Centers

Truman Medical Centers (TMC), a safety net for Jackson County and Kansas City, Missouri, is comprised of two acute care academic hospitals, the largest, most comprehensive behavioral health program in the area, a long-term are facility, and multiple primary care and specialty practices.
TMC provides care from birth through the senior years and is the primary teaching hospital for the University of Missouri-Kansas City Schools of Medicine, Pharmacy, Nursing and Dentistry. Fiscal responsibility is a must for survival and the ability to provide care; therefore, TMC strives to avoid unnecessary costs.

More than 20 percent of patients cared for by TMC are uninsured1, double Missouri’s rate of 9 percent uninsured.2 In FY 2018 alone, TMC delivered $108 million in charity care for the uninsured and underinsured in its community.3

 

The challenge: Supporting uninsured and underinsured patients in the Kansas City area

According to the American Hospital Association, hospitals in the United States have provided more than $620 billion in uncompensated care to patients since 2000.4 That includes figures for inability to pay, plus the cost of uncompensated drugs and medical devices.

“We’re sensitive to uncompensated care costs because we serve a relatively large population of uninsured and underinsured patients,” said Scott Zweerink, PharmD, Director of Outpatient Pharmacy Services and 340B Program Compliance. “The high cost of some medications and devices can lead patients to go without. And of course, uncompensated costs impact our bottom line and safety net mission.”

Our solution: AmerisourceBergen RecoveRx Patient Assistance Program (PAP) solution

AmerisourceBergen PHS professionals recognized TMC’s recovery challenge. PHS provided a complete recovery solution that could be implemented quickly and required no TMC investment in capital or personnel.

PHS specialists worked with TMC pharmacy leadership to implement the RecoveRx™ solution. To speed the process, all applications are administered electronically. An automated workflow tracks claims and flags denials for the patient assistance representative to appeal.

“The PHS representative handles every step in the recovery process, in real time, for nearly every manufacturer’s PAP,” explained Zweerink. “That frees us to assign an FTE to other tasks.”

 

The PHS consultants helped us to revise and streamline our 340B systems and processes. As a result, our regulatory profile is much stronger and we’ve achieved financial savings by identifying and enrolling eligible patients at a higher rate.

Ed Szandzik, Vice President for In-Patient Pharmacy, Henry Ford Health System

The outcome: Combining excellent safety net care with significant cost recovery 

The RecoveRx solution ramped up quickly and within 10 months helped TMC dramatically increase its recovery of uncompensated costs. The program recovered more than $2 million in FY 2019, building on year one total recovery of nearly $1.6 million – delivering a strong result for TMC leadership. In year one, the PHS representative also filed successful retroactive claims for $78,717 linked to care TMC provided the year before. 


Dedicated PHS experts run and oversee the recovery program

“Our patient assistance representative consistently receives high marks from TMC personnel, and we credit her with helping us to exceed our pro forma recovery projections,” said Hennenfent.

Hennefent also praises PHS’s PAP solution for eliminating staffing concerns, such as worrying about in-house program managers leaving or having to trim staff. The dedicated PHS representative provides reliable, ongoing program performance.