MIT Holding saw its business grow above expectations in the first quarter, reporting triple-digit increases in revenues, service income and gross profit, and a drastically reduced net loss. The source for such incredible year-over-year growth? The company’s acceptance and adaptation to the Affordable Care Act (ACA).
While many companies have pushed back against the ACA, MIT Holding embraces the new healthcare law. Anything new means a change to the old ways of doing business. Fight the changes and you have a host of new problems to deal with on a daily basis. Change what you were doing, however, and those problems just seem to disappear.
Meaningful Use Rules under the ACA requires doctor and hospitals to document a patient’s recovery after discharge. This mandate creates significant obstacles for hospitals, such as how to track a patient’s recovery while they are at home and how to ensure they are taking the proper medications, therapies, and keeping multiple appointments. These challenges are sending hospitals nationwide scrambling to find a solution for these MUR requirements.
How serious is this to doctors and hospitals? Very. For example, let’s say a hospital bills Medicare/Medicaid for procedure “XYZ” and the allocated payment for that service is $10,000. The hospital must now follow up on the patient AFTER discharge.
Should the patient not recover or the hospital not properly document according to the rules, the hospital is penalized for the next year in that Medicaid/Medicare will pay all of those same procedures billed for the next year at a lower payout. So if the penalty is 10%, the hospital would only receive $9,000 for procedure “XYZ” for the NEXT 12 MONTHS.
Recognizing the steep implications hospitals may face under the new requirements under the ACA, MIT has developed a solution. MIT offers doctors and hospitals the ability to refer their patients to the company’s one-source recovery service. This first-of-its-kind concierge service starts as soon as the patient is discharged from the hospital, at which time they are met with an MIT representative. With the patient’s permission, MIT then assumes the responsibility of the recovery period.
MIT’s services are comprehensive to the at-home recovery phase, handling everything from in-home medical equipment, infusion services, medications, follow up appointments, therapy sessions, wound dressings, transportation, insurance inquires and professional insurance claim billing. The company’s goal is for the patient to feel as if the hospital went home with them. There will be no lapse in care. All the patient needs to do is follow the MIT professional health caregiver’s instructions and recover. On a daily basis, MIT will document the recovery of the patient, interacting with them one-on-one to help them heal properly, efficiently and quickly.
The digital paperwork the company maintains in order to monitor the patients recovery contains the information the hospital and doctors need to comply with the new rules. For a small and reasonable fee that information is now an email away.
With this solution, MIT has answered the question many hospitals are asking: “How do you track a patient once they have left the medical facility?”
When a pneumonia patient is discharged from the hospital and signed onto MIT’s system, the company expects that on average there will be from $12,000 to $15,000 in billable events. The company is prepared to capture those events and collect a fee for the digital paperwork documenting the recovery. A simple integration of the hospital software with MIT’s software should deliver that information in a format ready for filing with Medicare/ Medicaid.
The efficiency and growing popularity of MIT’s one-source solution is in the numbers.
In a recent 10Q filing, MIT reported first-quarter revenues of $489,854, more than double prior-year first-quarter revenues of $279,872. The company attributes this growth of 133.3% to an increase in customer referrals and subcontractor services. The first-quarter net loss of $9,654 represents a drastic cut from a loss of $105,726 a year ago. This resulted in a gross profit for the first quarter of $277,922, or 56.7%, as compared to gross profit for the same quarter in 2014 of $127,790, or 60.9%. Furthermore, new billing procedures improved the company’s accounts receivable by nearly 200%.
Moving forward, MIT will continue to embrace the ACA and the opportunities it provides for the company’s at-home recovery solutions and services.
“We deal in solutions not problems at MIT Holding and see no reason to fight the system,” says William Nalley, head of MIT’s investor relations. “When the problem occurs for the doctors and hospitals MIT Holding deliver the solutions. The benefit for MIT Holding is the captured billing events for that patient’s medical recovery.”
For more information, visit www.mitholdinginc.com
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