Patient Account Rank Order (PARO) Risk-Assessment Scoring

PARO™ scoring offers a way to meet Community Benefit needs and provides these benefits to those parts of your community that are underserved.  The scoring will identify:

• Patients who qualify for Presumptive Charity

• Patients who are most likely to pay within 120-days post discharge

• Identifies fraudulent SSN’s

• “Right Party Contact” updates/verification

  • Address
  • Phone numbers
  • Corrected SSN’s (from registration errors)

PARO Charity Score is a non-Fair Credit Reporting Act (FCRA) solution. It does not access personal credit data so there is no negative impact on a patient’s credit (most true charity care patients do not have a credit history). It is a true predictive model based upon past socioeconomic behaviors.

Includes:

• Household Income & Size

• Asset Ownership

• Ratio to estimated FPL

PARO assesses all eligible patients regardless of whether the patient asked for assistance or a staff member requested the information. All eligible accounts receive the same level of consideration.

PARO Charity Score is a socioeconomic score that predicts the likelihood of financial assistance qualification via database access to 9,000 sources with 2 billion records for:

• Consumer transaction files

• Court records

• Asset ownership files

• Criminal convictions

• Utility files

• Government files (bankruptcy, SSN, deceased)

• IRS aggregate data

• US Census data

PARO is a true predictive model built on charity approvals and not derived from credit bureau data or a collection score manipulated for charity care. This model helps hospitals meet their Community Benefit objectives by providing a consistent method to assess their self-pay patients.

PARO does not require the patient to engage in the application process. This addresses the fundamental problem with most charity application policies, which require the patient to comprehend an application process and ask for the benefit.

PARO is validated and calibrated for a facility’s historical approvals and regional economic conditions. The PARO results are customized for each Client application to yield the same expected result as its traditional charity care application and policy.

PARO is closely aligned to the principals compiled in IRS Form 990, Schedule H and the definition of presumptive charity, and has been audited by Catholic Health Audit and Deloitte as well as others. PARO transaction expense for patients qualified for presumptive charity can be claimed as a Community Benefit expense on Form 990, Schedule 990.

Facility can go back 1 year into facility bad-debt and reclassify to Charity Care.

PARO Time-to-Payment Score is a segmentation score that allows for the identification of patients that will likely make a payment on their self-pay account within 120 days of discharge.