Owensboro Health and Optum today announced a comprehensive partnership wherein the Minnesota-based company will manage and modernize key functions including revenue cycle and information technology. As part of the partnership, 575 OH workers at OH will become employees of Optum. OH will still make all final decisions regarding policies, governance and more — and has already committed to continuing their financial assistance program.
Through the partnership, Owensboro Health revenue cycle management operations and information technology services will become part of Optum. The nearly 575 team members in those departments, including leadership, will become part of Optum beginning in April 2023. According to OH officials, those team members will have access to more state-of-the-art tools, technologies, processes, skills development training opportunities and new opportunities for advancement.
Brian Hamby, director of marketing at OH, said those employees will now be on the Optum payroll and benefit plan. However, the local economy won’t be affected because the payroll tax is based on where an employee works, not where the employer is based.
Hamby also said no one will have to relocate.
“They are absolutely staying here,” he said. “They will continue to work in the same buildings or remotely, whatever they’re doing now, they will continue to do just like they’ve always done. They’re just doing so as an employee of Optum instead of Owensboro Health.
According to a release, “Optum will manage a select set of operational functions and investments, allowing Owensboro Health to focus on its core competencies – patient care and service – and support future growth and innovation in the region.”
Specifically, Owensboro Health and Optum will, per the release:
- Simplify revenue cycle workflows so team members can spend more time communicating with patients and less time dealing with repetitive tasks.
- Deliver a transparent, patient-friendly billing experience and resolve issues quickly.
- Power digital health care transformation by enhancing infrastructure across all of Owensboro Health’s care delivery networks.
- Create a virtual Center of Excellence contact center training program to recruit, train and employ a regional workforce of both entry level and experienced talent to support health systems across the nation. The jobs will offer competitive wages and promote career growth in Owensboro and western Kentucky.
- Accelerate job creation and learning opportunities within Owensboro Health by supporting key workforce initiatives to help educate and train high school and college students in specialized health care roles. Optum will provide internships, mentoring programs and post-graduate hiring of qualified candidates.
“We are proud to be the regional leader in providing high-quality primary and specialty care for our friends, family and neighbors in western Kentucky and southern Indiana,” said Russ Ranallo, chief financial officer of Owensboro Health. “As partners with Optum, we’ll build on the innovative work we’ve already done, recruit and retain the loyalty of the best physicians and clinicians, invest in new technologies to enhance patient care, and expand our services to underserved areas. Owensboro Health has deep roots in the local community, and we look forward to continuing our tradition of service and doing what we do best for generations to come.”
Hamby said Ranallo would still be employed by Owensboro Health as CFO, but “any team member, leader or not, who is in those departments will become Optum team members. Some leaders are definitely going to be transitioning to Optum as well.”
Hamby said Owensboro Health will still have the final say in what projects are prioritized.
“Everything will still happen at Owensboro Health’s direction,” he said. “This is a partnership we’re invested in. We still retain the ultimate control of the overall strategy and what projects we’ll be working on. What Optum brings to the table is a governance structure that both Optum and Owensboro Health will kind of navigate together. We’ll prioritize projects together based on the plan we develop. It’s not just outsourcing jobs. It’s a true partnership where we’re working together to prioritize projects that are needed at Owensboro Health.”
Hamby further clarified that when making plans, “OH identifies key needs and priorities, and Optum develops the roadmap. There is a set governance structure with reps from both Optum and OH on the organization chart. Those committees will evaluate the projects versus the plan and make key decisions. OH will always have final signoff on the plan and project decisions.”
Hamby said it may take a while for the patients to notice any differences, but in the long run they will benefit from the partnership.
“There’s going to be an evaluation period and a getting to know each other phase,” he said. “But over the course of a year and then definitely the long term what you should start to see is a smoother experience for billing, for digital scheduling, for various healthcare applications — all those things should really start to work together really seamlessly. Our teams have done a really good job of making some of that work, but we think there will still be an overall better experience for patients as this partnership really grows and blossoms.”
Hamby said OH also still plans to keep the no-interest payment option that patients have been able to utilize for their bills.
“We are committed to maintaining the financial assistance policy that we’ve always had,” he said. “That will continue and we already made a commitment that will stay.”
In essence, OH will still make all final decisions, while Optum brings to the table an added level of expertise that will improve efficiency and the patient/user experience.
“Owensboro Health retains complete control of the policies, the direction, the rules, the governance, all that,” Hamby said. “Optum brings some real expertise on how to blend all these different functions together to work more seamlessly. They definitely have a tremendous amount of technological resources and expertise on how to optimize our platforms we’re using. We see it as a true partnership.”
Dan Schumacher, chief strategy and growth officer of UnitedHealth Group, the parent company of Optum, said in a release:“Optum is honored to be working with Owensboro Health to reinvent traditional health care models and systems, improve efficiency and address complex social and economic factors. Together we can advance superior quality care and enhance the experience of patients, physicians, nurses and other providers.”
