Page 171 - DCOM505_WORKING_CAPITAL_MANAGEMENT

Working Capital Management

Notes 3. Credit control: Once the credit policy is formulated and credit extended to different
customers, it is necessary to control the receivables. Control can be exercised in two
directions
(a) Collection procedures
(b) Monitoring receivables.

Case Study The O2I Difference

utsource2india (O2I) is wholly owned by Flatworld Solutions Pvt. Ltd. which is
located and headquartered in Bangalore, India. The parent company first started
Oserving the global market in 1999. At the beginning it offered just custom software
development. But soon the company began offering a wide range of specialized business
process outsourcing solutions designed to meet rapidly increasing market demands. Today,
Flatworld Solutions is an independent company that has over 600 people in multiple
delivery centers spread across India, South East Asia and South America.

O2I was initially approached by an urgent care practice in Maryland to take care of Account
Receivables Management. The client was also facing a problem on the billing side like:
1. The billing was not completed within 24 hours

2. Steep Decrease in collections
3. Poor quality of work done by in-house billers
The Client wanted to hand over the billing side to O2I in 2 months if he got satisfied with
the company’s ability on the AR Management. O2I did a good job and the owner of the
clinic handed over the billing part as promised.
For successful ARM, O2I had to use a new software namely AdvancedMD for carrying out
the operations. The personnel got cross-trained over phone on the practice management
software.
The Project involved O2I
1. To provide Full Service Billing.
2. To handle average of 700 claims every month
To which the company took the following measures to improve collections and
productivity:
1. A dedicated Account Manager and Team were deputed to handle the clients account
2. The team consisted of full time employees for medical billing, medical coding and
an AR expert
3. Evolved a medical billing process and an AR process to make sure that billing took
place within 24 hours
4. Follow-up on denied claims
5. Address issues with insurance company and get them resolved
6. Maintain knowledge base of issues and solutions

Contd...

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