Jackson, Wyo.-based St. John’s Health plans to outsource mid-revenue cycle roles to Sage Clinical RCM, Jackson Hole News & Guide reported June 21.
As part of the transition, 19 St. John’s revenue cycle workers are being asked to be rebadged as Sage Clinical employees, according to the report. Employees who accept roles at Sage Clinical will maintain their current pay and continue working on St. John’s accounts. They will continue to work on the hospital’s Jackson campus. All employees will be offered a transition bonus of an undisclosed amount.
St. John’s CFO Mitch Watson told the news outlet that outsourcing the roles eliminates the need for large layoffs. The hospital is projected to face a $14 million operating deficit in fiscal 2026, according to the report.
The transition affects about a quarter of the hospital’s revenue cycle team, which has 97 employees overall, according to the report. The hospital employs about 800 people overall.
Mr. Watson said the hospital believes employees working for Sage Clinical will have access to additional resources and billing expertise. While the hospital expects the move to generate savings over time, he said the primary goal is to strengthen revenue cycle performance and ensure the organization is collecting appropriately.
A St. John’s spokesperson told Becker’s that its plan for remaining a sustainable, independent, CMS five-star-rated hospital in today’s rural healthcare environment “depends on optimizing our revenue cycle and other operations performance.”
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