Weather compliance storms and protect your revenue stream !
Medical practices are doing what they traditionally scoffed at ; crunching numbers ! Medical care providers are working towards optimal practice efficiency. And of course protect their revenue stream from the challenges and changes, of an ever-shifting landscape. While every medical practice does what it can to increase its bottom-line, there are very few who reach their goals.
A missed charge a day can drive profits away !
According to a survey conducted recently, spanning over 200 medical practices, there is at least one error or missed charge, for every 10 charts, audited. It doesn’t take much time to realize that it is going to be a huge revenue drainer in the long run.
Balance to hash totals, is one easy way, to spot errors. After payment posting add the CPT codes of each charge ticket. Use a revenue management system that calculates hash totals on the daily balancing report of your system.
Examine key performance indicators regularly…
Truckloads of data can only confuse. To get a handle on your revenue cycle analyse your KPIs regularly. Narrowing down on what areas need to be focused will give better direction and perspective.
Evaluate your…
- Aging AR
- Collection rate
- Comparison of RVUs
- Patient collections
- Technology costs vs. how they automate your workflow and increase process efficiency
Skimming through monthly collection reports is not going to work anymore! Staying proactive, closely analysing financial performance and exploring newer revenue models will help medical practice weather out the storms of uncertainty and bureaucratic interference.
Patient care and patient payment are not mutually exclusive terms !
A lot of dollars are wasted on uncollected co-pays. Most physicians shy away from twist arm tactics as it can result in patients switching providers. But, there is a middle-ground. Make it your medical practice’s policy to collect co-pays at the time of service and inform front-desk staff to maintain a co-pay collection report. It is good practice to call patients and inform them about payment responsibilities prior to a visit, so they are not in sticker shock when they walk into your medical practice.
Do you include aging buckets at the bottom of patient statements ?
Do away with them ! A more strongly worded “due within xxxx” is much effective. No amount is too small to be collected. A seemingly harmless $10 left uncollected from a patient can leave a huge dent in your net collections as every ten dollar left on the table leads to thousands of uncollected dollars per year!
Unpaid co-pays can drive up your DRO !
Days in accounts receivable outstanding (DRO) can increase drastically if co-pay collections are poor. According to a survey by MGMA it takes a family practice, a shocking 31 days to get paid for services rendered. At 41 days, orthopaedic practices fare a lot worse !
Know where you stand !
Most medical billers offer just hazy overview of collections ratio. Demand more… Sometimes a high collection ratio could just mean you are offering services at a lower cost or putting in more hours at office. The standard procedure is to divide collections by charges. Medical practices can get a clearer financial picture by calculating relative value units (RVU).
Comparing collections against benchmarks of your specialty will help you get the real facts instead of vague financial stats and inaccurate projections.
Don’t be a back-seat driver !
Being complacent can prove to be the biggest threat to your medical practice’s financial stability. In an environment where that leaves little or no room for error, it is important to be prepared. Flexible reimbursement models are the order of the day. Rigid reimbursement models and policies can lead to a stagnant revenue stream that refuses to move upwards.
Now is the time for…
- Financial reporting tools that can understand the mechanics of reimbursement and provide newer revenue avenues
- Better payer contracts and looking beyond the fee for service model
- Staff who are more trained, informed and participative in the financial workflow of a medical practice
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