Annual Report 2012

SHARP RISE IN
REVENUES UNDERLINES
POSITIVE FINANCIAL
PERFORMANCE

SEHA’S FINANCIAL PERFORMANCE IN 2012 MAINTAINED ITS WELL-ESTABLISHED UPWARD TREND, SUBSTANTIALLY EXCEEDING TARGETS ACROSS MANY KEY INDICATORS.

NET PATIENT REVENUE, THE CRUCIAL DETERMINANT, INCREASED BY 18.4% AFTER PROVISION FOR DOUBTFUL ACCOUNTS. THE GROWTH IN COLLECTED REVENUE WAS EVEN MORE IMPRESSIVE, INCREASING BY 34.4% AND INDICATIVE OF THE GROWING PATIENT VOLUMES, REDUCED CLAIMS DENIALS, AND MORE EFFICIENT COLLECTION.

THIS IS EVIDENT IN THE SHARP RISE IN AVERAGE REVENUE PER PATIENT, UP BY 35.3% FOR INPATIENTS AND 37.3% FOR OUTPATIENTS, OUTSTRIPPING THE RESPECTIVE GROWTH OF 1.9% AND 4.2% IN INPATIENT ADMISSIONS AND OUTPATIENT VISITS.



A SIMILAR TREND CONTINUES IN APD (ADJUSTED PATIENT DAY) REVENUE – UP 28.5% (AFTER PROVISION FOR DOUBTFUL ACCOUNTS) AND SLIGHTLY AHEAD OF BUDGET BY 0.6%. HOWEVER, OPERATING COST PER APD INCREASED BY 21.5% AND WAS 5.8% UNFAVORABLE TO BUDGET, DUE TO HIGHER SALARIES, SUPPLY COSTS, AND WAGES AND BENEFITS.

SEHA is committed to an ongoing policy of aggressive management of financial performance to achieve effectiveness and efficiency. Billing and reimbursement capabilities are constantly reviewed and improved to maximize revenues, including execution of SEHA’s future billing system roadmap and seeking additional contractual relationships with health insurers to give customers more choice.

During 2012, the Finance Division was instrumental in concluding a management services agreement (MSA) with Dell to manage SEHA’s Central Business Office and all related revenue cycle management (RCM) services.

Setup and migration of the RCM compliance program has since been completed and a separate BE/budget will be effective from January, 2013.

Further operational enhancements included going live with Cerner Electronic eligibility and benefits management modules at all SEHA facilities. Initial assessment/design work for the SEHA Automated Budgeting Solution (Oracle/Hyperion) was completed at pilot locations and initial key user training at all SEHA BEs began in Q3.

The revised SEHA Oracle Chart of Accounts now matches service line and productivity reporting, and the new Cerner patient accounting system is scheduled to go live at SEHA facilities, having completed a pilot project at Mafraq.

Heads of agreement have been signed with HA-AD, Daman, and the Department of Finance as an agreed framework for achieving sustainable healthcare reimbursement mechanisms.

Although 2012 yielded many positive results, financial challenges continue in terms of productivity, outcomes management, and customer service delivery. In keeping with SEHA’s long-term strategy, successfully meeting those challenges is a constant priority.

DURING 2012, THE FINANCE DIVISION WAS INSTRUMENTAL IN CONCLUDING A MANAGEMENT SERVICES AGREEMENT (MSA) WITH DELL TO MANAGE SEHA’S CENTRAL BUSINESS OFFICE AND ALL RELATED REVENUE CYCLE MANAGEMENT (RCM) SERVICES.

THE REVISED SEHA ORACLE CHART OF ACCOUNTS NOW MATCHES SERVICE LINE AND PRODUCTIVITY REPORTING, AND THE NEW CERNER PATIENT ACCOUNTING SYSTEM IS SCHEDULED TO GO LIVE AT SEHA FACILITIES, HAVING COMPLETED A PILOT PROJECT AT MAFRAQ.