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Principles and methods

The Excalibur Method

Three sevens. The Pillar Approach diagnoses the organization. The 7 Methods are the revenue cycle operating model. The 7 Principles are the discipline behind the DDPM in our name. Enough here to show the thinking; the full playbook comes with the engagement.

In one sentence: The Excalibur Method is the Three 7s: the Pillar Approach (five core pillars with Project Management as the ceiling and Governance as the foundation), the 7 Methods (the revenue cycle operating model) and the 7 Principles of Data Driven Performance Management, operationalized daily by AskMerlin.
The Pillar Approach

Five pillars stand the structure up.

Project Management is the ceiling. Governance is the foundation. The Readiness Assessment scores each one from 1 to 10 and tells you which to address first.

The CeilingProject ManagementKeeps the agenda moving. Without it, every initiative loses steam.
Structure

Revenue cycle functions must report to revenue cycle leaders.

People

Skill misalignment surfaces as rework and turnover cost.

Process

Undocumented processes do not survive turnover.

Technology

Technology must serve process, not the other way around.

Measurement

Leading and lagging indicators, every day, at the payer level.

The FoundationGovernanceA small number of disciplined, interdisciplinary forums: Mock Month End, the Revenue Cycle Steering Committee and a Denial Prevention and Recovery Forum among them.

For a lean, short-staffed hospital team, the most common fracture is Structure or Process: front-end functions reporting outside revenue cycle, or workqueues with no cross-functional map. That is usually where we start.

The 7 Methods

The revenue cycle operating model.

One size does not fit all. An engagement can begin at any single method, or all seven.

01B41C: Before the First Cup of Coffee

The discipline of measuring, and managing to, key leading and lagging indicators on a daily, weekly and monthly cadence.

02Front-End Financial Securement

Most denials are decided before the patient discharges. This is the top net revenue killer in the industry, and the method that addresses it at the source.

03Cross-Functional DNFB Management

Discharged, not final billed is a shared segment of the receivable, managed by several stakeholders, not just HIM and Coding.

04Dispositional Receivables Management

Segmenting and stratifying the receivable to tell leadership the story. An end to working accounts one by one.

05Predictive Account-Level Forecasting

Predict the outcome of every balance, then use the data to stratify the receivable and patient engagement. The right account, at the right time, with the right strategy.

06Payment Discrepancy Resolution

One hub that manages any payment at variance to expected reimbursement: denial, credit or underpayment.

07Triangulation A/R Valuation

An account-level valuation that gives Finance multiple perspectives on the net collectible value of its largest asset.

The 7 Principles

The discipline behind the DDPM.

Data Driven Performance Management is not a dashboard. It is seven habits, run daily, that turn a receivable from a static balance into a narrative you can act on.

01Single Version of the Truth

Ends the paralysis of four leaders holding four different reports on the same problem, none of which tie to each other or to an objective source.

02On Demand

A decision made on last week's data is made too late to change this week's outcome.

03Get to the Bottom of It

Aggregate metrics say a problem exists. Granular metrics say where it is.

04Dispositional

Turns the receivable from a static balance into a narrative you can act on.

05Exception Driven

Managing by defect.

06None Driven

Managing by what did not happen.

07Direct Cash Management First

Reduce or eliminate meetings that are not directly connected to cash performance.

Plain language

Revenue cycle terms, defined for Finance

Contractual allowance
The difference between gross charges and the amount a payer contract says the provider will be paid. Allowance volatility is the enemy of a predictable close.
Realization rate
Net revenue collected as a percentage of gross charges. Excalibur's Eastern Washington client partner moved from 27 to 32 percent.
DNFB
Discharged, not final billed: accounts where care is complete but the claim has not dropped. A shared segment of the receivable, not an HIM problem alone.
Dispositional management
Working the receivable by the disposition of each account (what will happen to it) rather than one account at a time or by aging bucket.
Net collectible value
What the receivable is actually worth after contractuals, bad debt and uncompensated care; the number auditors and boards care about.
Leading and lagging indicators
Leading indicators (registration quality, authorization rates, DNFB days) predict cash; lagging indicators (cash, net days, A/R over 90) confirm it.
Payment discrepancy
Any payment at variance to the expected reimbursement: a denial, an underpayment or a credit balance. One hub resolves all three.
Month-end close
The process of finalizing the revenue cycle's contribution to the financial statements. Excalibur delivers a Revenue Cycle Income Statement in two business days or less.
Answers

Questions about the method

What are the Three 7s?

The Three 7s are Excalibur's intellectual property: the Pillar Approach (an organizational diagnostic of five core pillars, with Project Management as the ceiling and Governance as the foundation), the 7 Methods (the revenue cycle operating model) and the 7 Principles of Data Driven Performance Management (the philosophy the AskMerlin platform operationalizes daily).

Can we start with one method?

Yes. One size does not fit all. An engagement can begin at any single method, or all seven, and the Readiness Assessment tells you which pillar to address first.

What is B41C?

B41C stands for Before the First Cup of Coffee. It is the discipline of measuring, and managing to, key leading and lagging indicators on a daily, weekly and monthly cadence, so revenue cycle leaders see the story of the month before it becomes the month-end surprise.

What is Triangulation A/R Valuation?

Triangulation A/R Valuation is an account-level valuation that gives Finance multiple perspectives on the net collectible value of its receivable, using more than one method so reserves are defensible to auditors, boards and lenders.

Next step

See where your organization sits on the maturity curve.

The Readiness Assessment scores you against the Pillars and the Principles: Absent, Emerging, Practiced or Hardwired. Then it tells you which pillar first, what hardwiring requires, how long it takes and what it costs.