Carilion Clinic to transfer revenue operations to third-party management company

Roanoke-based Carilion Clinic is set to outsource some of its administrative work to an Ohio-based company called Ensemble Health Partners. The decision will affect about 780 employees, but no layoffs are expected, health system officials said Wednesday.

Instead, workers will be offered employment with Ensemble Health Partners at the same rate of pay or higher, said Don Halliwill, Carilion’s chief financial officer. Comparable roles and benefits will also be offered through Ensemble.

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The transition is expected to be complete by September.

“This is not a cost-reduction decision. This is an enhancement decision that will benefit … our patients, our employees, and in longer terms our organization,” Halliwill said.

Carilion Clinic is a private nonprofit health system that employs more than 13,000 people across its 240 practice sites. It provides services to about 1 million residents in western Virginia.

Ensemble Health Partners will take over management of Carilion’s revenue cycle operations, a part of hospital administration that includes identifying, managing and collecting patient service revenue. It encompasses departments such as scheduling, registration, billing and customer service.

The partnership with Ensemble will give employees access to technological advancements, resources and training, according to a press release from Carilion. By joining a company dedicated exclusively to revenue cycle operations, employees will have access to greater professional support as well, the release said.

“Revenue cycle has evolved and gotten more and more complex. This will help us keep pace with industry changes,” said Carilion spokesperson Hannah Curtis.

Patients will not experience any changes, but the transition is expected to improve efficiency in registering patients as well as in billing and collections.

Hospital leadership worked with Ensemble for more than a year before deciding to make the transition, Carilion CEO Nancy Agee said in the press release.

“We’ll continue working with the same fine employees who have helped us get our revenue cycle operations where they are today while we benefit from Ensemble’s extensive experience in helping health systems optimize their processes and their advanced technologies,” she said.

Ensemble already is established in Virginia; since 2020, it has worked with Virginia Commonwealth University Health System.

The partnership with Carilion is the fourth deal Ensemble has made in 2024. The company is also working with Tower Health in Pennsylvania, Beebe Healthcare in Delaware and Tallahassee Memorial Healthcare in Florida, according to Ensemble’s website.

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