MED3OOO, Inc: Patrick Hampson, Founder, Chairman and CEO

by HCE Exchange on August 19, 2010

In order for physicians to focus on the art and science of delivering healthcare, more and more frequently they are looking to outsiders to develop and manage the business side of healthcare. Recent decades have seen a plethora of software developers, information technology advances, and various types of consultants step in to fill this need. MED3OOO has gone a step further.

More than just a vendor looking to sell licenses to use a particular piece of software, MED3OOO partners with physician groups and hospitals with the goal of improving performance and adding value to the delivery of healthcare.

“We have become known as the premier strategic operating partner for physician groups and hospitals. What that means is that we don’t just sell them a product or service,” says Patrick Hampson, founder, Chairman and CEO of MED3OOO, Inc. “When we become a partner, we are actually embedded in the operations of the physician practices.”

Long-Term Partners, Not Short-Term Vendors

Hampson has worked in the healthcare industry since the mid-1980s. His early experiences showed him that part of the problem with the healthcare consulting industry was that the consultants weren’t really specialists in healthcare management at all, but rather specialists in services—such as insurance or finance—that they were hoping physicians would invest in. Hampson founded MED3OOO in 1995 and it has since become one of the largest private healthcare management and technology companies in the US, with 1,700 employees and 14 operating centers across the country.

As an application service provider, MED3OOO adds value to the data being collected or the technology systems in place. They tailor the dissemination and distribution of information to the needs of the physicians or groups being served and the company works to improve quality of business and clinical operations , as well as outcomes for the patient. As an indicator of their commitment to improving the bottom line of the businesses they work with, MED3OOO can work on a flat fee, but would rather work on a percentage of group revenues, when providing fully managed services or Revenue Cycle Management. If a practice is implemented in such a way that it does not make the client money, MED3OOO does not make money either.

What Partnering Entails

Hampson describes MED3OOO as rather system-agnostic. The company knows that one size doesn’t fit all, so it looks at each physician group individually to help them best decide which solutions can improve current business processes. A medical group may like the MED3OOO advanced systems or already have a preference for a particular system. In each case, MED3OOO goes in and determines what is needed to make that system work best for that particular practice and specialty They might manage the entire physician group, or they might contract only for IT services, accounting, revenue cycle management or managed care contracting.

A physician doesn’t necessarily have to throw out old technology and invest in new. MED3OOO operators are especially valuable because they have the expertise and knowledge base to advance the capabilities and potential of the systems a client already has in place. If a group is looking for a new system – a new electronic health record, for instance – MED3OOO has proprietary and non proprietary system models that can be put in place.   But if a group simply needs to add value to their existing technology, MED3OOO operators can help them by improving  their processes and taking advantage of MED3OOO’s best of class reporting application practices.

Hampson says about 75% of MED3OOO business is currently based on partnerships using national brands such as Allscripts, Misys,Sage and GE. About 25% is based on proprietary technology. “Whether we use someone else’s technology or our own technology, our goal is to make that technology more than just an expense. We provide a value-added service that is focused on cost and quality improvements,” says Hampson.

Success Stories

MED3OOO partnered with the city of Newark in Ohio last year as its emergency medical services billing company. Prior to the partnership, the city had handled all of its billing and claims in-house and was losing revenue due to claims not being billed to insurance companies. Using advanced technology to streamline the billing and collections process, claim turnaround time was reduced and costs minimized. In one year of partnering with MED3OOO, the city had collected $1,680,000 for emergency medical services and was able to hire seven additional firefighters, as well as provide funds for much-needed capital improvements.

Saint. Francis Medical Center in Cape Girardeau, MO, recently partnered with MED3OOO to implement practice management systems including Revenue Cycle and Data Management. Among the benefits the staff was able to immediately recognize was the ability to run reports that were previously generated manually. MED3OOO teams continue to work with staff to develop additional programs that will help physicians deliver healthcare at lower cost and higher quality.

MED3OOO has shown that it can improve patient outcomes, as well. A 2004 initiative with Provena Service Corporation, a 35-physician group practice in the Midwest, was able to improve diabetes management in hundreds of patients. Through use of technology to identify and monitor diabetic patients, the percentage whose diabetes could be classified as controlled rose from around 60% to 80% in nine months.

After a two-year review of potential partners, in June of 2008, MED3OOO began taking steps to explore technology and data management services outside of the US. A Japanese Global 140 company, Mitsui, is partnering with MED3OOO to look at opportunities in Asia with plans to eventually move to other parts of the globe.

Meeting Future Challenges

MED3OOO must help its partners overcome the big issue of providing care in an environment of reduced reimbursements, rising operating costs and expectations of quality improvement. As well, there will be an ongoing need to deal with outdated and underperforming information systems. The challenge is to remain focused on the long-term commitment to improving healthcare systems and practices rather than the short-term goal of cutting costs, a stumbling block for many companies in the medical technology business. “When you simply install a piece of equipment and walk away, there is no investment in the health and well-being of the business. We don’t focus on the cheapest cost, but on the way we can partner to make the business of healthcare viable for the long-run,” says Hampson.

He also emphasizes that keeping MED3OOO a private company is important to its success. The company can focus on reinvesting all profits and margins back into its technologies and services for a longer term vision of the company rather than worry about short-term quarterly profits and pennies per share.

“We are a sustainable company that reinvests, not only in its own operations, but also in its own technologies and services. We believe that physicians and hospitals are the key deliverers of healthcare and that the sustainable strategy for our company is to invest in ourselves in order to continue to differentiate the ways we can improve the cost and quality of healthcare for our partners,” says Hampson.

“Soon we will use our own data management systems to predict our own employee healthcare needs. We want to be proactive in helping our employees live better, healthier lives,” and Hampson’s guiding philosophy is that by testing and improving their systems through their own employee health management, they will be  able to use this additional real world knowledge gain to better provide for their partners.

“There have been many companies in the physician management or revenue cycle management industry that have either been acquired or gone by the wayside,” Hampson says. “With 15,000 users on our technology platforms and significant presence in the US, we have a business model of long-term and recurring relationships. It has proven to be very sustainable.”

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