Reducing AR Backlogs to Drive Financial Stability
Reducing AR Backlogs to Drive Financial Stability
$718,000
increase in cash collections
$1.9M
reduction in total AR
Overview
PurposeCare of Indiana is a healthcare organization that provides community-based home care and home health services. Primarily serving seniors and individuals who are eligible for both Medicaid and Medicare, PurposeCare is in 78% of counties in Indiana. By emphasizing holistic, coordinated care that allows individuals to remain in their homes, PurposeCare aims to improve quality of life by preventing hospitalizations and promoting independence.Addressing the AR Backlog
In 2024, PurposeCare experienced an increase in claim denials and cash flow disruptions triggered by billing challenges and processing errors related to a new state-mandated Medicaid program. This program automatically enrolled residents of Indiana aged 60+ receiving Medicaid, introducing complex billing requirements. Claims billing and processing procedures created material challenges in attaining payment, specifically for overhead charges. The result: a backlog of unresolved claims.
PurposeCare recognized Netsmart as an ally with a deep knowledge of home care and revenue cycle management. They enlisted the help of Netsmart to uncover the root causes of their AR challenges and implemented targeted services to reduce AR and accelerate cash collections.
Turning AR Challenges into Cash Flow
With dedicated support through the Netsmart RCM service team, PurposeCare gained the confidence that roughly 16,000 claims were in the hands of experts with deep home care knowledge. The flexibility of RCM services allowed PurposeCare to zero in on aged claims tied to the new Medicaid program, while keeping pace with current billing demands.
By working directly with Netsmart RCM experts to fix problems as they surfaced, the team reduced PurposeCare’s burden of chasing claims and shifted the focus to collecting. The results spoke volumes: cash collections increased by $718,000* and total AR was reduced by $1.9 million.**
On short notice, we reached out to the Netsmart team to see if they could help us resolve aged balances so that our internal teams could focus on right-sizing revenue cycle operations during Q1 of 2025 – and they lived up to the challenge. Due to their support, hard work and collaboration, we cleaned up aged accounts and got to a place where our team could focus on new-day cash collections.
Ryan J Cavanaugh, VP of Revenue Cycle, PurposeCare
*Comparing payments in March 2025 with payments in June 2025
**Comparing starting AR in March 2025 with aged AR through June 2025
