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Updated: November 15, 2020

Connecticut Children’s

Connecticut Children’s

 

Honoree category: Corporate Achievement — Innovation


In July, Connecticut Children’s entered into an ambitious new business venture that could be its most significant to date.

The hospital, working with a private-equity backed company called Guidehouse, formed a joint venture company called Children’s Health Consortium that aims to provide revenue cycle management services to a dozen or more U.S. pediatric hospitals over the coming years.

The venture doesn’t involve any upfront capital commitment from Connecticut Children’s. Instead, the hospital will transfer approximately 170 back-office employees to the new company.

Revenue cycle management includes the software and processes used by providers and their vendors to document, bill for and collect on services provided.

While the need for revenue cycle employees can fluctuate from month to month, they are a fixed expense for Connecticut Children’s and many other U.S. standalone pediatric hospitals that the new company hopes to court as equity partners.

The consortium allows Connecticut Children’s revenue cycle employees to pick up the slack during busy periods for other member hospitals, and vice versa.

The shared ownership model is meant to seize on economies of scale, and equity members will only pay the new company for the services they’ve received, rather than shouldering the fixed salary and benefit costs of an entire department alone.

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