MD Collect

Is Your A/R and Collections Performance Above Average?

2012-02-29T11:53:00.000-08:00

The best-performing medical practices keep their accounts receivable in check and do a better job on patient collections at time of service.

Below is an enlightening exert from Healthcare Finance News as they reported on MGMA's annual performance survey. MGMA conducts an annual survey of medical practices and report its findings in "MGMA Performance and Practices of Successful Medical Groups: 2011 Report Based on 2010 Data." Accounts Receivable and Collections was one of four categories that were identified as key areas of focus that attributed to the success of "better-performers."

...the report noted these practices reported less bad debt due to fee-for-service activity per full-time employee, reporting bad debt ranging from $6,000 to $14,000 less than other practices. Also, while better performers reported less than 10 percent of their accounts receivables were more than 120 days past due, other groups reported rates between 19 percent and 35 percent.

The report also showed the better performers collected between 90 percent and 100 percent of patient co-payments at the time of service.

Read the entire article here.

How much of your receivable is 120 days past due? What can you do to accelerate the flow of cash at your practice?

A Patient Collections Self-Examination

2012-02-29T11:52:00.004-08:00

Without a doubt, we all know there are things we could do better. Having just botched Valentine's Day for my beloved wife, being a bit more prepared and deliberate about celebrating the romantic holiday is now at the top of my list. I'll spare everyone my plans for redemption but if I uncover a gem for those of us in relationships, I'll pass it on.

While this self-deprecating introduction could put a damper on sharing something productive and positive for medical practice leaders, I'll forge ahead. Obviously, the topic of patient collections is interesting to me because it's our business - so it's natural for me to switch gears and look at a this aspect of practice profitability with a critical eye. If you feel your collections are right where they should be, please share your secrets in the comments section below. If your performance in the realm of collecting patient balances is less than stellar, or if you simply are a self-improvement fiend, then please read on.

Below is a list of 40, yes 40, questions to ask of your practice and what you do facilitate cash flow. Of course, a heavy focus on claims administration and denials can have an enormous return. And there are certainly a myriad of regulations and deadlines confronting providers today, but have you given a hard look at the sometimes simple things your practice can consider when profitability is under review?

This self-examination is re-posted from the MGMA In Practice Blog:

Streamlining your medical practice's patient collections goes beyond simply collecting from patients at the time of service. In fact, there are many ways to improve patient collections, from performing a monthly charge-capture audit to having your front desk adequately staffed. Are you as a practice administrator doing all you can to maximize revenue? Answer these questions, compiled with help from the MGMA Health Care Consulting Group, to find out.

1. Whenscheduling the patient's appointment, is staff mentioning the fees/copaysrequired during the visit?

2. Doyou offer flexible payments plans for patients who cannot pay in full?

3. Doyou accept credit and debit cards?

4. Doyou use kiosks in your practice?

5. Aresigns about copays clearly displayed at the front desk?

6. Areemployees consistently asking for copays?

7. Doyou provide appointments for your patients when they want them? Deliver avaluable service, and it's easy to ask for payment.

8. Doyou use your automated appointment reminder system to also remind patients ofpast-due balances and/or expected copays at the time of their appointments?

9. Doesyour checkout employee look up as soon as the patient arrives at the checkoutstation to greet them promptly and start the checkout process?

10. Do you havea counter top with a pen and calendar readily available so that thepatient can easily write a check or set their things down while reaching fortheir wallet?

11. Does yourcashier/checkout person say "thank you" when the patient makes apayment?

12. Do you havecash on hand to provide change to patients who pay using a large bill ($50 or$100)?

13. Doautomated receipts print from your system to link the patient's payment totheir account, assuring the patient that posting mistakes are eliminated?

14. Are youchecking for patient insurance eligibility and benefits at least two daysbefore a scheduled visit?

15. Does yourpractice have a clear written policy regarding patient financialresponsibility (collecting copayments and prior balances)? If yes, is itfollowed?

16. What areyour lag times? Identify the times between date of service and

a. Dateof charge entry

b. Dateof claim submission

17. Do you collectand monitor data regarding reasons for denials and use the results to trainyour employees?

18. Do youperform a monthly charge-capture audit to ensure that all types of charges andplace-of-service information is accurate?

19. Does yourpractice base its fee schedule on a quantifiable process or is it determined inan indiscriminate manner?

20. Are youusing all the services offered by your clearinghouse?

21. Does yourbusiness office share the reasons for electronic charge rejections so staff canbe trained, or does the business office employee correct the errors himselfbecause it's easier and faster?

22. Do youmonitor both categories of write-offs: contractual and non-contractual?

23. How oftenis a credit balance report run?

24. Does yourpractice comply with state and federal laws regarding credit balances?

25. Do youprioritize your outstanding accounts receivable by balance due (high to low),account type, payer type, date claim submitted, date of service and age ofaccount?

26. Have youdeveloped and do you follow a policy concerning patients that cannot payco-pays on the day of service? Will you tell them they need to reschedule?

27. Do you usea tiered approach to patient collections and match the collection effort notwith the patient balance but with the expected payment?

28. Do you usea monthly bonus system for employees who collect patient payments in theoffice?

29. Have youimplemented online billing and payment tools?

30. Have yourecently assessed your current billing statement effectiveness?

31. Does yourpractice assign accounts receivable by alphabet or by payer type?

32. Is yourbilling staff cross-trained so that when one person is out the entire processcan continue seamlessly?

33. Do youestablish performance targets for the staff and trend them over time?

34. Is patientcollections performance benchmarked to practice results and to MGMA surveydata?

35. Is yourpractice maximizing features and capabilities of your practice managementsoftware?

36. Does yourpractice have a super-user on site for the practice management software, or doyou have to rely on tech support for every question needing an answer?

37. Has thefront desk staff been trained in the proper way to ask for payment?

38. Is thereadequate privacy at the front desk area so that staff may speak with patientsregarding outstanding balances without everybody in the reception area hearing?

39. Forpatients with outstanding balances greater than the acceptable age (60-90days), do you ask the patient to sign an agreement for settling the previousbalance and require either a deposit on the current visit or payment in full?

40. Do you askpatients to sign a promissory note?

Sources 1-6 from MGMA resources 7-14 provided by Rosemarie Nelson, MS, MGMA principal consultant14-25 provided by Cindy Dunn, RN, FACMPE, MGMA senior consultant26-30 provided by John Emerson, MGMA consultant31-38 provided by Ken Hertz, CMPE, MGMA principal consultant38-40 provided by Trip Kinmon, FACMPE, MGMA consultant

Elizabeth Woodcock's 3-tiered approach to patient collections

2012-02-29T11:39:00.000-08:00

Elizabeth Woodcock's 3-tiered Approach to Patient Collections

Frequently, our customers ask us for resources and strategies on better patient collections. Elizabeth Woodcock is a well-know source, widely published, and a regular contributor to various blogs and associations. We've found her 3-tiered strategy to be concise and executable - important factors for today's resource-challenged medical practices.

This is a re-post from MGMA's In Practice Blog.

by Elizabeth Woodcock

The most frequently asked question that Elizabeth Woodcock, MBA, FACMPE, CPC , gets from medical practice administrators is, "How can I get more money in the door?" It's the same question we recently asked the professional speaker, trainer and author specializing in medical practice management.
The environment you're dealing with in your practices isn't easy. The recession caused an increase in uninsured patients. Uninsured patients caused an increase in bad debt for practices. And insured patients are actually assuming higher financial responsibility , based on their employers' plans. Faced with all these pressures, how do you amp up your patient collections efforts?

Woodcock shared her 3-tiered strategy with us in an MGMA podcast , and we've transcribed part of it here:

1. Define what you can collect.

This step sets up all the collection efforts to follow. Take a look at your contracts and participation agreements with insurance companies and see what you're allowed to do. For example, can you collect co-payments or unmet deductibles?

Also, keep in mind whom you'll be collecting from. Woodcock says there are three types of patients:

The happy patients who have their credit card ready and waiting
Those who need a little nudging, or maybe a compliment or two
Those who have no intention whatsoever of paying you

Expect your collection agency to step in and assist with the second group of patients - the nudgers.

2. Decide on the process to collect it.
This step combines pre-visit, time-of-service and post-visit communications. One of Woodcock's favorite time-of-service collection tips is the collection script. Instead of asking the patient if she would like to pay today, which can prompt someone to say no, ask her how she would like to pay. Changing one simple word can make a world of difference in the staff-patient interaction.

Woodcock also recommends offering a payment plan for a patient who simply cannot pay right now. "It's a great alternative to getting nothing," she says. But put parameters in place: don't extend the plan past six months and have a minimum monthly payment of $25 dollars. Ask the patient about their time frame; in general it will be a tighter time frame than you would have developed yourself.

Another step to remember is patient check-out. "Check-out is an opportunity to be a safety net for your collections process at the time of service," says Woodcock. It also offers an opportunity to recapture copayments you may not have collected at check-in. Plus, you can see if any account balances are due and possibly calculate any unmet deductibles or coinsurance based on the services rendered in the office that day.

See these 40 questions to ask yourself about patient collections to ensure you're doing all you can.

3. Implement the resources, tools and training to execute it.
Should you hire more people? Have a financial counselor? Could a kiosk or predictive dialer employed in the business office help? How you implement your plan depends on what's best for your practice and staff.

Woodcock describes how one practice decided to use the patients' explanation of benefits (EOB) to help them collect unmet deductibles and account balances. The front office initiated the payment conversation, and when a patient would make an excuse about paying, the staff handed them the printed EOB and explained how the insurance company already took care of a portion of their bill. Staff invited the patient to call the insurance company if they had any questions, then asked again for payment.

"It is a wonderful best practice and a great success because it really allows the practice to be put in an advocacy position instead of the bad guy," says Woodcock. "Truly, a medical practice administrator and all of the front office and business office team members really are advocates for the patient. And unfortunately, they've been put into the 'bad guy' position. This was a way to turn that around and be successful in collecting as well."

For more patient collection tips from Woodcock, check out her book, The Physician Billing Process: 12 Potholes to Avoid in the Road to Getting Paid, 2nd Edition , or meet her in person at the following upcoming MGMA specialty conferences:

VAR Summit Day 1

2011-10-13T08:27:00.000-07:00

VAR Summit Day 1 - Fantastic time connecting with our McKesson partners and the expansive membership of the VAR channel. The latest evolution of MD-Collect for Medisoft is being met with high accolades by developers and users alike. The functionality of the automated patient collection solution is matched by the profound collection results achieved by the end users, physician practices. Several recent implementation sites are seeing colection rates above 25%. These sites include independent family practices, McKesson Practice Care sites, and specialty groups. It's turning out to be an exciting fall season.

A busy first day in Orland

McKesson Practice Care

2011-10-11T13:30:00.001-07:00

McKesson Practice Care -- We were thrilled to join our friends and partners as they launched two ground breaking new solutions for independent practices. MD-Collect joined McKesson in Orlando for the launch of Practice Care and Practice Choice at AAFP. MD-Collect is the patient collection solution for Practice Care, "a set of solutions thoughtfully engineered to support small-practice physicians who would rather tend to patients than administrative tasks." Practice Choice is the latest EHR and patient management solution offered as a web-based software as a service (SaS) model...Learn more at www.mckessonpracticecare.com

It's Alive!

2011-09-09T05:54:00.000-07:00

Our thanks to Mel Brooks and Gene Wilder for their inspiration.

Incubation

2011-06-19T05:53:00.001-07:00

Not much longer...

Call Me

2011-03-03T11:08:00.000-08:00

A Look at What's Happening with the Telephone Consumer Protection Act

Charles Jordan

The use of wireless phones as a communications tool is exploding. Whether

for voice calls, text messages or surfing the Internet, we heavily depend on wireless phones to send and receive information. Many people have dropped the land lines which once served as their primary phone service in favor of wireless phones. The Government Accountability Office recently concluded that nearly 40 percent of households rely primarily on wireless devices.

The Telephone Consumer Protection Act of 1991 (the "TCPA"), a federal law enacted as an amendment to the Communications Act of 1934, primarily regulates telephone solicitations such as telemarketing. In addition, it applies to businesses that use an automatic telephone dialing system to communicate with consumers. Of particular interest in the TCPA is its regulation of how businesses communicate with consumers by calling them on their wireless phones.

3 Self-Pay Collection Strategies to Improve Cash Flow

2011-02-23T06:24:00.000-08:00

From HFMA's Revenue Cycle Strategist

Three key points of focus for those seeking to improve self-pay collections. 3 Self-Pay Collection Strategies to Improve Cash Flow

The stats on payment processing / electronic payment methods are enlightening.

Ping Pong Anyone?

2011-01-10T10:59:00.000-08:00

Ping Pong Anyone?

The Elevator Pitch

2010-11-15T00:41:00.000-08:00

The Elevator Pitch, animated. We're having a great time at the McKesson VAR Summit. If you are here in Atlanta and haven't had a chance to check out the new MD Collect for Medisoft, swing by booth #6 in the Buckhead Ballroom. Play the ping pong ball game and qualify for Tuesday's tournament.

Here's the pitch...

Are you segmenting your A/R?

2010-10-22T10:53:00.000-07:00

There is a good read in the September issue of hfm Magazine, "A Closer Look at Self-Pay Segmentation." As we reviewed and discussed the commentary, we compared notes on the different models used by our healthcare organizations and how those strategies have evolved over the years. From the old faithful "work the highest balances first" to detailed stratification based on propensity to pay, segmentation models have existed for some time. Today, healthcare providers have a wealth of information and innovative technologies so that they can optimize resources and efforts to recover what is owed. Yesterdays, strategy to call the highest balances first becomes today's "cash value prioritization" as described by the authors (learn more).

While highly detailed segmentation models can aid many in the ever challenging world of fine tuning the revenue cycle, every organization is different, with different resources, different philosophies, and serving different communities. As a partner to providers in a sea of variance, we seek to align our efforts with theirs. A CCI customer recently shared their segmentation strategies during a Siemens Customer Outreach webinar. Click here to request an abridged copy of the presentation and watch for a detailed case study from CCI in the coming months.

We're curious about your take on the subject. Are you segmenting? Share your comments below or email us at eNewsletter@cciws.com.

MAP Award Congrats

2010-09-09T19:02:00.000-07:00

Congratulations to the 2010 MAP Award winners recognized at ANI this summer.

Baylor Medical Center at Irving
Irving, Texas
CHRISTUS Schumpert Health System
Shreveport, La.
Hospital of the University of Pennsylvania
Philadelphia, Penn.
Riverside Methodist Hospital
Columbus, Ohio
Danbury Hospital
Danbury, Conn.
Saint Francis Hospital
Tulsa, Oklahoma
The Valley Hospital
Ridgewood, N.J.
Princeton Baptist Medical Center
Birmingham, Ala.
Geisinger Medical Center
Danville, Penn.
Brookwood Medical Center
Birmingham, Ala.

MAP stands for measure, apply, perform. The initiative was developed by HFMA to identify and standardize key performance indicators in the industry. Through resources, tools and events, MAP seeks to promote consistent reporting practices, improve performance, and honor organizations that excel.

ANI Keynote Debrief

2010-09-09T18:58:00.000-07:00

From Recession to Reform
Highlights from ANI - HFMA'S 2010 Healthcare Finance Conference

At HFMA's annual Healthcare Finance Conference in June, President and CEO, Dick Clarke reviewed the economy, the implications of reform, and outlined strategies for healthcare leaders to sustain the performance of their organizations.

While the economy continues to show some signs of improvement, Federal unemployment rates are still at a 10-year high. According to the U.S. Bureau of Labor Statistics, in July the national average remained at 9.5% which is approximately the same level it was one year ago (9.4% July 2009). These sustained levels continue to tax patients with the broadening liability they have for their healthcare costs. And the less-than-robust economy continues to limit healthcare organization's capital expenditures and construction plans.

Fortunately, Mr. Clarke does point out the silver linings and provides an optimistic view. As an industry, we continue to adapt and are seeking substantial shifts in process improvements and business performance. And as supported by ARRA and the HIT bill, he notes that our "investments in technology remain strong."

The keys to success and surviving the storm lie in our abilities to adapt and focus on the things that will drive value to new levels. Through initiatives like quality process improvements, clinical integration, optimized revenue cycle performance, and an improved patient experience, healthcare providers can act on strategies that will help them endure this era of change and continue to provide their vital services to our communities.

Download the slide deck from Dick Clarke's presentation.
or
Watch a video of Dick Clarke's ANI 2010 keynote address.

An Entertaining Video

2010-07-02T13:36:00.000-07:00

A short video of a vintage mail machine we fired up the other day.

Runs like a dream...

We produce and mail as many as 250,000 letters in a week. It's nice to have durable and serviceable machines such as this.

Thanks for Being Our MUSE

2010-06-14T12:12:00.000-07:00

Thank you for helping make our experience at MUSE so great.

We hope you made it to the keynote address by Pranav Mistry and took the opportunity to chat with him at our booth after the event. What a kind, generous, and brilliant guy. It was fascinating to discuss with Pranav the fundamental mechanics behind some of his research and inventions; as well as the possible applications for the healthcare industry.

Pranav Mistry and CCI's Ryan J. McGowan

Win an Amazon kindle!

If you visited the CCI booth and didn't get the opportunity to refer us to a peer in the business office, you can still do so here. Completing the form will enter both names in our drawing on June 25th for an Amazon kindle.

If you missed Pranav's keynote address at MUSE, here's a clip from TED India 2009. We hope to post a clip from the MUSE keynote address soon which includes several inventions and concepts that could revolutionize healthcare.

Thank you again.

John Barksdale and Ryan J. McGowan
Computer Credit Inc

CCI - an Introduction

2010-03-29T06:49:00.000-07:00

Click the right arrow to begin. Then click inside the window to advance the presentation to the next view.