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Board authorizes Innova to collect self-pay accounts at rate not to exceed 12%
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Summary
The Western County Health Services Board authorized CEO Kathy Harshbarger to contract with Innova to pursue outstanding self-pay accounts, approving a contingency-style fee not to exceed 12 percent after discussion about incentives and staffing.
The Western County Health Services Board on an unrecorded roll-call vote authorized CEO Kathy Harshbarger to engage Innova for self-pay patient collections at a contingency rate not to exceed 12 percent.
Board members said the hospital has roughly $268,000 in self-pay receivables that are not being worked consistently by existing staff. Carrie Doss made the motion to authorize the contract and the motion was seconded; the board then voted in favor. "Carrie Doss made the motion to authorize Kathy to engage Inova for self pay collections at a rate not to exceed 12%," a board member recorded for the minutes.
Board members discussed two payment structures offered by Innova: an hourly arrangement and a percentage-of-collections arrangement. Several members said a percentage-based fee creates an incentive for the vendor to collect more. One board member said, "If it if you're asking me, I prefer a percentage of collections because it's an incentive to work harder." Another noted that staff currently ‘‘do it whenever they have time,’’ leaving many accounts unworked.
The board did not record a per-member vote tally in the transcript; minutes reflect the motion passed. The motion authorized the CEO to negotiate and execute the collection engagement within the 12 percent cap and to report back with the final rate obtained and any additional terms.
Board members requested that Kathy report the final negotiated fee and that the engagement include regular updates so the board can track improvements in cash collections. The motion included no amendment to existing billing or charity-care policies; board members said those processes (applications for charity care) would continue to be handled by staff or by referrals to internal staff who assist patients with applications.
Hospital staff said nursing-home cash collections have shown improvement independently and that the Innova engagement is intended to address outstanding self-pay accounts across the organization. The board recorded no further formal conditions or contingencies in the meeting transcript.
Next steps: the CEO will finalize the contract with Innova within the 12 percent limit and report the negotiated rate and initial results to the board; the minutes record the motion as passed.
