• Is someone comparing charge slips to missing charges (if any)? Accounting for the Patient in the Healthcare Revenue Cycle Aligning the healthcare revenue cycle with the patient experience and patient demands will help to boost collections and streamline clinical encounters, a healthcare CFO explains. That’s what we call The Bridge, which is the first step within PARF. Performance & security by Cloudflare, Please complete the security check to access. Without good accounting practices, in fact, the prognosis for any healthcare facility is rather poor, at best. Consider the patient’s limitations and strengths. If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices. Physicians and office managers can’t just assume that everyone is doing their job—instead, regular meetings need to take place so that financial reports are reviewed in order to note accuracy (or the lack thereof) in collections, revenue, and accounts receivable. Simply put, if your office’s accounting personnel fail to make sure that patients pay their bills—or, to put it more accurately—that insurance companies pay those bills (since most of the revenue has traditionally come from health insurance plans/services), then you won’t be able to pay your own bills, meet payroll responsibilities and, consequently, be able to keep your doors open so you can keep diagnosing and treating patients. PROBLEMS ACCOUNTING IS THERE TO PREVENT This transaction price is usually based on historical data from patients with similar arrangements. Hospital staff must be aware of the patient’s full medical history, particularly if the patient presents a high-risk case. Obviously, this results in substantial losses of revenue for healthcare facilities that allow such inexcusable travesties to go on. At the very least, confirm that every member of your staff is intimately familiar with how important properly managed accounting is for the viability and survivability of your entire operation. To build a new patient acquisition machine, you need a blueprint, training, accountability, and transparency. In healthcare, RCM calls for: Managing a medical office’s payments received; Processing and tracking, which can often become complex; Determining patient eligibility for specific services This is just as undesirable to hospital managers as it is to the patients themselves. For example, roughly 26% of claims promptly and accurately put through are just as promptly rejected. Others may want just the facts, and do better with a simple checklist. Are you concerned that your practice is paying too much for credit card processing fees? There is no question, however, that income or “revenue” takes precedence since, without adequate revenue, there is no viable “business.”. Our Patient Acquisition and Retention Framework™ (PARF) puts you in control of finding and keeping the right patients while growing your practice for long-term health. Readmissions are not only costly to healthcare systems, but speak to a poor overall standard of care. To prevent readmissions, hospital managers must set up a holistic approach to post-discharge follow-up with patients. Does your staff regularly fall behind on claims follow-up? RCM, simply put, focuses on the main reasons for having such a thing as “accounting” to begin with. A common situation that healthcare accountants run into is an accumulation of credits in accounts receivable. Helping patients access their records- It’s estimated that 50 percent of providers are still using … Unless there is a well-established/running workflow, steps in the process can be missed, tasks may be forgotten, and mistakes may increase in quantity. As rese… Revenue cycle optimization can be compared to a supply chain; failure by one administrative staff person to do his/her job ultimately affects the entire “chain.”  Not coding correctly, inaccurate data entry or failing to perform certain tasks that may negatively affect the facility’s “bottom line.”. Although they may be busy doing multiple tasks, staff members can get into trouble can if they underestimate their role in the accounting process. Your IP: 149.202.166.146 If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. It is easy for all such credits to total in the millions of dollars. In fact, the entire revenue cycle process in healthcare includes some basic accounting procedures: collecting patient co-pay, determining patient eligibility, making sure coding is conducted accurately, claims tracking, collecting all payments and following through on denied claims. Accounting, after all, deals with the management of income and expenses. Effectively managing the patient revenue cycle for a medical facility often requires the use of special medical billing software; in other words, computer technology/software is necessary to accurately keep tabs on the rather-complicated claims processing routine. No patient wants to leave the hospital only to return within a few days or weeks. Running a medical facility is difficult enough without even considering the financial responsibilities involved. More importantly, roughly 40% of those rejected claims are, for some strange reasons, never re-submitted. In fact, the entire revenue cycle process in healthcare includes some basic accounting procedures:  collecting patient co-pay, determining patient eligibility, making sure coding is conducted accurately, claims tracking, collecting all payments and following through on denied claims. Of course, you can stay afloat while at the same time incur some of the problems or deficiencies already mentioned. All these things can result in costly delays in getting the funds you need to pay your facility’s own bills. One of the best ways to explain the importance of accounting in healthcare settings is by using Revenue Cycle Management (RCM) as an illustration. Financial strain is the single most important factor in making healthcare decisions for low-income individuals, who often forgo care in favor of basic needs such as food and rent, researchers in UT Southwestern's Center for Patient-Centered Outcomes Research found.. • Source: Thinkstock This happens when the amount collected via payers and/or patients for a service is greater than the amount owed. Does the patient have physical, mental, or emotional impairments that impact the ability to learn? It’s where we discover your needs and learn how we can help take your practice to the next level. Check out this episode with Dr. Keith Dressler, founder of Rhinogram. Has your staff, for example, been properly trained in confirming patient eligibility, insurance status, and proper co-pay amounts? New Preferred Partner, Merchant Cost Consulting, Orthodontic Telemedicine with Dr. Keith Dressler, Founder of Rhinogram. they haven’t been formally trained in the financial aspects of running a facility (which is why many doctors hire office managers and accountants); they are usually too busy practicing medicine to properly supervise their personnel, including their accounting staff; and they often have no reason to suspect that the revenue for the practice can most probably be enhanced simply by reducing or removing the inefficiencies, shortcoming, and waste that can often be found in medical care facilities/offices. What it may all boil down to is that you may be experiencing lower revenue than your practice should be showing in the books, if it were better managed, accounting-wise. Unless you already have on board highly-trained accounting/administrative personnel that you trust 100%, then you should have your whole accounting operation reviewed and double-checked for accuracy, timeliness, and efficiency. Achieving this, however, starts by having every staff member (including doctors) understand and fully appreciate how important accounting is for a medical practice. Check out this interview with Stacey Bagwell, New Patient Coordinator at Waldman Orthodontics. When payment is expected to be received directly from a patient (deductible), the health care entity will be required to estimate the transaction price for that revenue and determine if it is probable they will collect the expected consideration. HIP has recently entered into a strategic partnership with Merchant. Bad accounting practices don’t always lead to insolvency or bankruptcy but, even if all they’re doing is hurting your bottom line slightly, why would you tolerate such an easily fixed fiasco? In this video, you’ll hear exactly how to run a virtual consultation! 301 N. BARCELONA ST. SUITE BPENSACOLA, FL 32501, HIP Creative Inc. / Copyright 2020 / Privacy Policy, A healthy practice is built on solid science, proven methods, and a clear path to success. Then again, if the ideal revenue cycle processes and the well-coordinated workflows are in place, then your practice may experience increases in revenue/payments while, at the same time, seeing a decrease in bad debt write-offs—i.e., you are more likely to stay solvent.