Optum, based in Minneapolis, holds majority interest in the newly created company, Optum360. Dignity Health is a minority owner and entered into a 10-year contract with Optum360 for revenue cycle management services at a cost of $250 million per year, the health system said in annual financial filings. The company will focus on the full set of services, including registration, pre-authorization with insurance companies, and clinical documentation/coding to ensure that the medical record is complete and in compliance. This also would include working with insurance companies and patients on payment and reimbursement.
Michael Blaszyk, the chief financial officer and chief corporate officer for Dignity Health, said the health system saw an opportunity to diversify into revenue cycle management, but to do so would require technology that Dignity Health lacked.
Optum brings that technology to the joint venture, said Bill Miller, CEO of OptumInsight, the consulting and analytics arm of Optum, formerly known as Ingenix, and Optum will gain scale for its revenue cycle management services by working with Dignity Health.