Case Studies

CareSouth Rescues Agency from Bankruptcy

CareSouth's business services helped to avert bankruptcy for a southeastern non-for-profit home health agency. As a result of CareSouth's efforts, patient care continued uninterrupted throughout the agency's period of financial difficulty. The agency went from a loss of $779,000 in fiscal year 2000 to a profit of $618,000 in fiscal year 2001, an improvement of $1,397,000. The agency has returned to financial stability and continues to operate profitably.

Prior to the conversion of the agency to the CareSouth information system, Days to Final Claim averaged 48.6. Within four months, CareSouth reduced those days by 57% to an average of 20.7. The agency has sustained the improvement and by the first quarter of fiscal year 2003, decreased the number of Days to Final Claim to 14.7 days - an overall improvement of 70%. 

CareSouth reduced the agency's number of days revenue outstanding in accounts receivable, generating much needed cash to avert bankruptcy and to support growth. The agency's revenue days outstanding in accounts receivable have dropped from 90 days prior to CareSouth, down to 33 days at the end of September 2002. CareSouth has continued to manage accounts receivable at levels significantly less than the industry average.

<< Back to Case Studies