USC University Hospital and USC Norris Cancer Hospital Choose MedAssets for Technology-Enabled Revenue Cycle Outsource Services; Separate Agreement to Drive Supply Cost Savings

Great Value Expected from both Integrated Revenue Technology and Services and Supply Chain Management

ATLANTA--(BUSINESS WIRE)-- MedAssets (NASDAQ: MDAS) today announced that USC University Hospital and USC Norris Cancer Hospital (the “Hospitals”), both private teaching hospitals owned by the University of Southern California in Los Angeles (USC), have chosen MedAssets as their exclusive provider of technology-enabled business office outsource services. Beginning with patient access and continuing through to patient financial services, the MedAssets team will assess the entire revenue cycle and deploy the company’s industry-leading, Web-based technology where opportunities exist to increase revenue capture, reduce denials, decrease bad debt and improve operating margin and cash flow. USC currently generates approximately $550 million in annual net patient revenue.

Separate Agreement to Implement Supply Chain and Clinical Cost Management Services

Under terms of a separate, multi-year agreement, the Hospitals will utilize a combination of MedAssets strategic sourcing, supply chain services, clinical cost management capabilities, and the MedAssets proprietary ecommerce platform. In combination of these services, backed by advanced, proprietary databases, are designed to drive cost reductions and operating efficiencies without compromise to high-quality patient care.

“We chose to expand our relationship with MedAssets because of their subject-matter expertise in consulting, services and technology, across the entire supply chain and revenue cycle,” said Jonathan Spees, Chief Financial Officer of USC University Hospital and USC Norris Cancer Hospital. “As a teaching health system, USC University Hospital and USC Norris Cancer Hospital aspires to serve as a best practice customer for MedAssets to demonstrate the value to be gained from forging select, strategic business relationships and to keep pace with the changing landscape of healthcare expense and billing.”

Expansion of MedAssets Technology to Showcase Value of Full Portfolio

For two years, USC has used a variety of revenue cycle software solutions from MedAssets, including contract management, patient liability estimation and chargemaster, as well as regulatory-driven coding knowledge solutions. Under the new multi-year agreement, USC will engage MedAssets to implement additional technology to support greater accuracy and automation of patient access, financial clearance, charge integrity and claims management functions. The MedAssets revenue cycle consultants will redesign and implement best practices specific to USC’s patient access functions, and work onsite with staff to integrate those processes while leveraging new MedAssets technologies. On behalf of USC, MedAssets will operate all business office functions and certain critical pre-service financial clearance functions. In addition, MedAssets will leverage internal expert teams to manage denials and reduce underpaid accounts on behalf of USC to improve cash collections and maximize the liquidation of all receivables.

“MedAssets brings a holistic and high performing approach to the health system revenue cycle. From technology to outsourced services to process improvement, our solutions are applicable in health system environments across the nation to drive performance improvement, maximize net revenue and accelerate cash flow,” noted Greg Strobel, President of Revenue Cycle Management, MedAssets. “This expanded opportunity and partnership with USC will showcase the value of our end-to-end revenue cycle solutions portfolio. We are well-positioned to leverage a multidisciplinary team of experts to help USC deliver a more efficient financial clearance and business office process that patients expect today, and to capture every dollar due USC for clinical services rendered.”

Shaping the Revenue Cycle and the Patient Experience to Fully Capture Revenue for Services Rendered

Specific points of process improvements include leveraging the MedAssets Access Integrity suite of solutions to minimize patient information and data collection errors, and activate real-time insurance verification and patient payment calculations. MedAssets industry-leading Claims Management and Contract Manager revenue capture tools will support improved total reimbursements. Both solutions can accommodate working with disparate health information systems to provide a holistic view of financial performance.

Analysis of Supplies to Further Cost Reduction Opportunities

With the selection of MedAssetscomprehensive contract portfolio, USC gains access to negotiated rates with more than 1,100 leading manufacturers and distributors of high quality medical products and supplies. The health system also stands to benefit from MedAssets physician preference item (PPI) consulting services and spend management analytics to further enhance cost reduction opportunities. Supplies and drugs represent 25 percent of a typical hospital’s operating budget, and about 40 percent of the supply budget is spent on PPI.

Last, USC will utilize MedAssets eCommerce Exchange, a proprietary ecommerce platform designed to automate healthcare provider purchasing operations. With an online user transaction portal and a competitive, subscription price point, the service electronically connects users to suppliers to enable quick and simple exchange a variety of supply chain-related documents: purchase orders (POs), PO acknowledgments, advanced shipment notices, invoices and product/price catalogs. The MedAssets eCommerce Exchange currently supports transactions between more than 410 healthcare facilities and 170 national and regional suppliers.

About The University of Southern California

The University of Southern California owns two private teaching hospitals, USC University Hospital and USC Norris Cancer Hospital, both located in Los Angeles.

USC University Hospital (to be renamed, Keck Hospital of USC, this fall) is a 411-bed acute care hospital staffed by more than 500 USC doctors who are also faculty at the renowned Keck School of Medicine of USC. Opened in 1991, the hospital schedules more than one million patient appointments annually. Advanced services include neurointerventional radiology, minimally invasive cardiothoracic surgery, robotic surgery and interventional cardiology. Surgical specialties include organ transplantation and neurosurgery, as well as cardiothoracic, bariatric, esophageal, orthopaedic, and plastic and reconstructive surgeries. U.S. News and World Report named USC University Hospital among the best hospitals in the nation in the U.S. News & World Report magazine’s 21st annual rankings of “America’s Best Hospitals.”

USC Norris Cancer Hospitalis one of only a few facilities in Southern California built exclusively for cancer research and patient care. USC Norris Cancer Hospital is a 60-bed inpatient facility providing acute and critical care. The hospital features a designated bone marrow transplantation unit and a surgical unit with specially trained staff who strive to meet the unique needs of cancer patients and their loved ones. USC Norris Cancer Hospital is affiliated with the USC Norris Comprehensive Cancer Center –– one of the original nine comprehensive cancer centers designated by the National Cancer Institute. More information is available at www.uscnorriscancerhospital.org.

About MedAssets

MedAssets (NASDAQ: MDAS) partners with healthcare providers to improve their financial strength by implementing revenue cycle, spend and clinical resource management solutions that help capture revenue, control cost, improve margins and cash flow, increase regulatory compliance, and optimize operational efficiency. More than 180 health systems, 4,000 hospitals and 90,000 non-acute healthcare providers rely on MedAssets. The company currently manages $45 billion in supply spend and touches more than $316 billion in total patient revenue annually through its revenue cycle solutions. For more information, call 1.888.883.6332, e-mail [email protected] or visit http://www.medassets.com.

MDAS/B

MedAssets
Media Contact:Robin Wrinn, 678-624-7420
[email protected]
or
Investor Contact:Robert Borchert, 678-248-8194
[email protected]

Source: MedAssets