Case Study: PerfectServe


Invested: September 2000

Location: Knoxville, TN

Status: Active

Value Analysis of PerfectServe’s Impact on Hospital Operations

Business Description: PerfectServe provides physician contact and communications management services that improve hospital-to-physician communications. Advancing care coordination across the continuum, PerfectServe’s clinical communication platform makes it easy to connect clinicians – and push relevant clinical information – to the right physician at the right time, in the precise way each physician wishes to be reached. PerfectServe processes more than 30 million transactions annually, connecting more than 20,000 physicians in health systems and medical practices across 154 markets in the United States.

Improving Clinical Communications at Dignity Health’s St. Joseph’s Medical Center

US hospitals waste approximately $12 billion annually due to poor communication among care providers; 54% of the waste can be attributed to an increased length of stay and associated increased cost of care, according to the Center for Health and Information Decision Systems.

St. Joseph’s Medical Center, a non-profit, 359-bed hospital in Stockton, California identified the need to improve clinician communications between its more than 400 physicians on staff. The medical center elected to deploy PerfectServe to simplify and streamline communication processes to better direct and manage patient care.

After only five months of using PerfectServe, St Joseph’s demonstrated significant improvement in clinical processes dependent upon effective and efficient communications. Benefits analysis focused on: Quietness scores (patient satisfaction), patient outcomes, readmission rates, and patient throughput.


Of note:

        – The quietness measure is part of the score used to determine reimbursement under Value Based Purchasing. The 24% improvement in quietness resulted in an estimated $95,000 increase in revenue.

        – Patients discharged alive after a code blue event improved by 29%. Payers use hospital outcomes and performance in their negotiation process with providers, which directly impacts hospital revenue.

        – The 30-day readmission rates for patients over 64 decreased 12%. CMS lowers payment rates for hospitals experiencing higher than average readmission rates. Under-performing hospitals see a reduction of 1% of inpatient payments, which will increase to 3% by 2015.

        – The average length of stay decreased by 1.6%, representing a potential savings of $1,982,000 for the medical center.

        – The Emergency Department experienced 20% decrease in patients who left against medical advice, which correlates to an 11% increase in patients seen and treated.


“River Cities history and expertise in working with early stage companies proved invaluable in the formative years of PerfectServe. While our strategy shifted to better meet market dynamics, the team at River Cities was always there as a source of encouragement and business development. They made strategic introductions to some of our earliest hospital clients, contributing significantly to our growth. The people at River Cities are creative, constructive and straightforward. I am grateful for the opportunity to work with them as my business partners.”
-Terrell Edwards, CEO, PerfectServe, Inc.

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