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Do They Still Exist in Today’s Healthcare Milieu?
Staff Reporters
For a decade now, healthcare providers have been challenged to deliver quality patient care in an environment of shrinking profit margins. Total margins and operating margins have followed the same trend. Analysts report that an operating margin of less than 5% leaves an organization without the resources to invest in new technology and capital projects, and will eventually force the facility to close or merge. With rising labor costs, a poorly performing economy, and an aging population, these numbers are not likely to improve soon.
Industry Status
Although the industry has seen an overall improvement in accounts receivable days and bad debt for an extended period, it appears that many facilities have reached their peak in addressing these areas, particularly given current demands to reduce staff and other operational costs. So, where is the next major opportunity for reducing costs or maximizing revenue opportunities?
The Experts Opine
According to private consultants Ross J. Fidler and Karen White PhD, revenue cycle improvement still seems to be a promising and popular area today. And, PriceWaterhouseCoopers recently listed five areas to reinvent the revenue cycle:
1) organizational / accountability;
2) process/workflow improvements;
3) information systems/management reporting enhancements;
4) quality assurance mechanisms; and
5) department and staff productivity measurements.
Assessment
A thorough re-examination of the revenue cycle process will typically uncover cost drains and revenue opportunities.
Conclusion
To succeed in enhancing hospital revenue streams, for example, we commence with patient access through HIM to PFS, by applying optimal organizational structures, benchmarking, and technology adoption. Only then will outcomes trend toward higher performing revenue cycles.
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Filed under: Health Economics, iMBA, Inc., Managed Care | Tagged: accounts receivable, ARs, cash conversion cycle, revenue cycle |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Hospital Bad Debt
While many hospitals nationwide have struggled to collect money from patients lacking health insurance in recent years, a survey conducted by the Delaware Valley Healthcare Council determined that patients with insurance have actually become more of a problem with regards to not paying their bills, the Philadelphia Inquirer reported.
http://www.philly.com/philly/news/homepage/20100813_Hospitals_say_more_insured_patients_can_t_pay.html
Karen
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Three Modern Collections Rules and Pearls
http://www.BusinessofMedicalPractice.com
The following practice management procedures will markedly increase upfront office collections:
1. Train staff to handle exceptions: What is your policy if the patient payment is significant? Will you allow 25% payments—one today and three over the next three months? Communicate your policy to all staff. What will you do if a patient shows up without an insurance card? There will be other exceptions. Train employees to call the appropriate practice-management contact when an exception does not fit in the categories you provide and make sure those managers are responsive.
2. Understand that not everyone will shine in collections. The value of this new front-desk function should be reflected in job descriptions and wages. Track staff performance and hold employees accountable for collection goals. The most successful practices collect in the 90% range.
3. Provide professional signage that states your basic policy: “Payments are due at time of service.” Avoid typewritten statements on invoices.
Dr. David Edward Marcinko MBA CMP™
http://www.CertifiedMedicalPlanner.com
[Publisher-in-Chief]
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