Washington health system on path out of bankruptcy after changing billing companies

Astria Health, a three-hospital health system based in Sunnyside, Wash., is closer to its goal of getting out of bankruptcy after switching billing companies, CEO John Gallagher told the Yakima Sunrise Rotary Club, the Yakima Herald-Republic reported.

Astria filed for Chapter 11 bankruptcy protection on May 6, citing issues with its billing company.

Since then, the system has made progress with its plans for emerging from bankruptcy by the end of this year, according to Mr. Gallagher. This includes replacing its revenue cycle vendor.

In a speech to the Rotary Club, Mr. Gallagher said Astria faced a significant shortfall in cash flow because the billing company it contracted with in August 2018 couldn't collect $75 million in claims over nine months, the Herald-Republic reported. He attributed the problem to a mechanical issue.

Astria now has a new revenue cycle vendor, Gaffey Healthcare, which worked with the former vendor this summer and took over the health system's whole revenue cycle operation this August, according to the newspaper.

With the new billing company's system, Mr. Gallagher said the health system can collect claims faster and improve cash flow. According to the Herald-Republic, the system also has started paying off creditors.

Read the newspaper's full report here.  


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