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This newsletter from Advanced Medical Claim & Collection is a direct link to help physician offices handle the uphill climb towards the business side of medicine. There will be tips on improving revenue recovery from patients, insurances and minimizing denials and the ever changing requirements of our industry. You will be able to seek and take measures for better billing and coding practices. Performance Indicators are key in a physician setting today.
“ The Pulse”
Physician practices are experiencing an up hill climb and continually struggling to stay on top of their accounts receivable. Unfortunately, this has not been an easy task for medical providers to collect revenue belonging to their practice.
Physicians need to look at many variables such as cash flow, continuing denials, coding curves, their own documentation practices and the inability to keep up with the ever changing requirements laid out by the kingpins of the insurance industry. Failing to assess these variables can result in the loss of thousands of dollars per year .
Above all, addressing the many idiosyncrasies in this industry will help physicians take a closer look at what is going on in their practice, which in turn, allows you to implement some risk management procedures to minimize these losses. Being able to provide key performance indicators on a monthly basis will help your practice implement some veryhelpful procedures and cut your losses by very large percentages.
Some of the questions to ask yourself about your practice are:
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Is your total A/R within normal limits?
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Are your payers consistently accounting for about the same percentage of your aging?
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Are your write-offs and contractual adjustment ratio’s stable?
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Is your net cash flow 90% ?
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And most importantly: Is less than 20% of your total A/R aged 120 days or more?
Possible causes of these problems can include inadequate financial policies, and/or collection procedures, inadequate staffing, poor training of your front end staff and/or lack of accountability among your staff.
When performing A/R Analysis, it can uncover many issues, and once they have surfaced, new monthly goals should be set for the areas that need improvement.
Always set your sights a little higher until your A/R performance is stellar.
Exactly how much revenue is your practice losing?
Benchmarking your practice
"A Benchmark is a standard by which something can be measured or judged, or a method of measurement utilizing specific standards in order to compare it with, and improve one’s own product."
It is important to establish benchmarks so that you can set reasonable goals within your business and then, analyze and compare new data against old data.
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Are you seeing enough patients?
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Do you have a good mix of patients?
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Is your practice growing?
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Are your collections on par?
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Do you know your Average Revenue per patient?
These figures will allow you to forecast future income while aiding you in determining the changes your practice needs!
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