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SPEC·02 · Hospital & Health System

UB-04, DRG, observation, transfer. The full hospital stack.

Inpatient, outpatient, ED, observation, and facility billing under one program lead. Senior partners on this bench have run hospital billing departments inside 4-hospital systems. not consulted to them. We talk to your CFO in their language.

Bench depth
15+ years
per senior
Hospital-side operating experience.
Every senior partner on this bench has been a CRO, VP-RCM, or director inside a hospital or system.
Where hospital revenue dies

Six functions that decide your net collection rate.

Hospital billing has its own physics. The vendors who treat it like physician billing “at scale” lose money on transfer DRGs, two-midnight conversions, and observation. Here’s what we run differently.

01

UB-04 / 837I institutional billing

Inpatient, outpatient, ED, OBS, ambulatory surgery. Revenue-code-driven editing, condition-code discipline, occurrence/value-code capture. the institutional details payer scrubbers actually look at.

UB-04 / 837IRevenue-code editsCondition codes
  • Edit library: 14,000+ payer-specific institutional edits, maintained by a dedicated UB desk.
  • Coverage: Medicare, MA, Medicaid, MCO, BCBS, commercial. institutional and crossover handling.
  • Tooling: integrated to Epic, Cerner, Meditech, Paragon, and 8 other hospital platforms.
02

MS-DRG & APR-DRG optimization

Coding accuracy on the lines that move CMI: sepsis, AKI, malnutrition, respiratory failure, encephalopathy. CDI rounds embedded with the inpatient bench, not in a separate silo.

MS-DRG & APR-DRGCMI movementEmbedded CDI
  • CMI lift: documentation-attributable case-mix index movement, reported monthly.
  • CDI cadence: daily concurrent rounds on med-surg, ICU, and step-down. Not retrospective queries.
  • Provider feedback: physician-level coaching cards, signed off in writing each month.
03

Two-midnight rule & observation discipline

Status determination is where hospital revenue gets quietly destroyed. We work the UR / case-management workflow with your physician advisor. and we keep the documentation defensible.

Two-midnight ruleOBS-to-IP conversionUR / PA workflow
  • Status workflow: integrated with case management. Documentation supports the level billed, every time.
  • Conversion tracking: OBS-to-IP and IP-to-OBS movements logged with reason and audit trail.
  • Audit defense: every two-midnight call has an MD attestation and supporting clinical narrative.
04

Transfer DRG & post-acute capture

Transfer DRGs are the highest-volume audit lane and the most overlooked revenue lane. We track every qualifying transfer and reconcile post-acute placements, so you bill the right amount and survive the audit.

Transfer-DRG capturePost-acute reconciliationAudit-ready
  • Tracking: every transfer-eligible DRG flagged at discharge with destination type confirmed.
  • Reconciliation: post-acute admission verified against billed days. no over-bill, no under-bill.
  • Audit defense: documentation pre-staged for RAC and MAC transfer-DRG audits.
05

ED facility & pro-fee split

ED billing is two cycles, not one. Facility leveling, pro-fee leveling, and the documentation that supports both. We staff dedicated ED coders. not floor coders pulled in.

Facility levelPro-fee levelED-specific bench
  • Facility leveling: institution-specific level criteria, reviewed quarterly with ED leadership.
  • Pro-fee leveling: physician E/M tied to documentation, with provider-level coaching loops.
  • Critical-care time: handled correctly. the second-most-mis-coded line in hospital billing.
06

RAC & payer audit defense

Hospitals get audited. We staff appeal lifecycle through ALJ, with senior coding + clinical review on every dollar over the high-dollar threshold. We track timeline like our license depends on it.

Through ALJHigh-dollar reviewTimeline discipline
  • Lanes: RAC, MAC, UPIC, ZPIC, MA RADV, commercial post-pay, MS-DRG validation.
  • Appeal pack: clinical narrative + coding rationale + chart abstraction, senior partner sign-off.
  • Overturn target: 60%+ on high-dollar appeals. Trending shared with compliance officer monthly.
What we’ve seen on this bench

Six places hospital revenue typically leaks.

Below is what we see on the average hospital diagnostic. Not headline anecdotes. the structural leaks that show up across most engagements.

LEAK 01
Status mis-billing

Two-midnight calls without supporting documentation. OBS billed where IP was warranted, or vice versa. RAC magnet.

LEAK 02
Transfer-DRG miss

Eligible transfers not flagged at discharge. Per-diem reduction missed in the billing. or worse, billed full and clawed back.

LEAK 03
CDI in a silo

CDI specialists run on retrospective queries instead of concurrent rounds. CMI sits below documentation potential.

LEAK 04
ED leveling drift

Facility leveling and pro-fee leveling out of sync. Critical-care time mis-coded. Documentation gaps unaddressed.

LEAK 05
Underpayment blindness

Payer paying below contract, undetected. No variance tracking against contracted allowable. Money left on the table monthly.

LEAK 06
DNFB drift

Discharged-not-final-billed days creep without leadership visibility. Revenue stuck in pre-bill, not in AR. invisible to the dashboard.

Engagement format

Five phases. Same partner, start to finish.

A predictable rhythm. Same senior hospital partner from baseline to steady state. Your CFO gets the same person at every QBR.

DAY 1-15
Baseline & CMI read

90 days of remits, AR, CMI trend, denials, and DNFB read. Baseline KPIs locked in writing.

DAY 16-45
Bench & CDI stand-up

Inpatient, OP, and ED benches assigned. CDI specialists embedded. Edit library loaded.

DAY 46-75
Cutover & first close

First month of billing under our team. DNFB, CMI, denial trends reviewed weekly with revenue cycle leadership.

DAY 76-90
First CFO scorecard

4-page CFO scorecard with line-by-line variance explanation. Senior partner attends.

QUARTERLY
External audit + QBR

Third-party coding audit (100+ charts). Senior partner walks scorecard with CFO and physician leadership.

What we put in writing

Six SLAs. Hospital-specific.

Generic RCM SLAs don’t map to hospital revenue. These do.

METRICTARGETWHY IT MATTERS
Clean-claim rate (837I)95%+Institutional clean-claim rate, by payer. Tracked daily, reported monthly.
DNFB days< 4 daysDischarged-not-final-billed cycle time. Revenue stuck pre-bill is revenue invisible to AR aging.
CMI lift+2-5%Documentation-attributable case-mix index movement. Specialty-adjusted, not volume-driven.
Initial denial rate< 5%By payer and root cause. Top-5 causes flagged in monthly QBR with prevention plan.
Days in AR (dollar-weighted)38-45Hospital-typical range. Calculated weekly, audited quarterly to bank deposits.
Audit overturn60%+RAC / commercial post-pay overturn rate, dollar-weighted. Senior partner reviews high-dollar lanes.
THE STRUCTURAL CHOICE

Senior partners who’ve run hospital billing. not consulted to it.

Every senior partner on the hospital bench has run a hospital or system billing department as the operator. They’ve closed the month, sat with the CFO when the AR aged badly, and explained to a board why DNFB drifted. The reports look different when the writer has been on your side of the table.

WHAT THAT MEANS IN PRACTICE

Operating depth, not org-chart depth.

  • Same partner at every QBR. 12-month memory of your account, not a fresh face per quarter.
  • CFO conversation. net revenue, contractual reserves, accruals, board-level KPIs.
  • Physician conversation. CDI coaching, documentation specifics, MD-level CMI trends.
  • Compliance conversation. RAC posture, audit pipeline, DRG-validation defense.
  • Embedded CDI. concurrent rounds with med-surg and ICU, not retrospective queries.
Hospital scorecard

Four CFO-grade monthly outcomes.

CMI lift
Documentation-attributable
Specialty-adjusted
DNFB days
Pre-bill discipline
Revenue out of the dark
Denial rate
By payer + root cause
Top-5 prevention plan
Net collection rate
Vs. contracted allowable
Audited annually

Get a free DRG & DNFB read.

Send us your last 90 days of inpatient remits + DNFB report. We’ll send back a 4-page diagnostic on CMI, DNFB drift, transfer-DRG exposure, and audit risk. No obligation.

Book a 30-min audit

Pick a slot. No SDR triage.

Talk to a senior ASP-RCM partner about your hospital RCM. 30 minutes. Bring your denial reports, your DRG mismatch rate, or your appeal backlog. We will walk through where the systemic leaks are.

FOR HOSPITAL CFO + REVENUE CYCLE DIRECTORS

30 minutes with a senior partner.

Free. Same calendar a senior partner and directors live in. The next available slots are below.