Superior clinical performance needs to be supported by optimal financial performance. When new leadership at Children’s Hospital Los Angeles Medical Group (CHLAMG) realized the revenue cycle was compromising its clinical mission, a commitment was made to confront the problems head on.
CHLAMG consists of 564 physicians offering specialized pediatric care to children from around the world. Despite its size and long-standing reputation for clinical excellence, CHLAMG struggled with consistently poor revenue cycle performance. In turn, physician compensation, staff satisfaction, and retention, among other organizational aspects, were negatively affected. “Our revenue cycle was completely broken and had been for a number of years,” stated Larry Harrison, Chief Executive Officer (CEO) of CHLAMG. “There was no single cause for this poor performance but rather a host of issues related to technology, inefficient processes, lack of transparency, and an absence of accountability.”