Growing a Healthy Practice: Top 10 Ways to Increase Cash Flow and Reduce Past Due Accounts - PowerPoint PPT Presentation

Loading...

PPT – Growing a Healthy Practice: Top 10 Ways to Increase Cash Flow and Reduce Past Due Accounts PowerPoint presentation | free to download - id: 3b0642-NThlY



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Growing a Healthy Practice: Top 10 Ways to Increase Cash Flow and Reduce Past Due Accounts

Description:

Growing a Healthy Practice: Top 10 Ways to Increase Cash Flow and Reduce Past Due Accounts Presented by: Tracy L. Spears National Consultant Medical/Healthcare ... – PowerPoint PPT presentation

Number of Views:26
Avg rating:3.0/5.0
Slides: 51
Provided by: leonardom4
Learn more at: http://www.leonardomd.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Growing a Healthy Practice: Top 10 Ways to Increase Cash Flow and Reduce Past Due Accounts


1
Growing a Healthy Practice Top 10 Ways to
Increase Cash Flow and Reduce Past Due Accounts
Presented by Tracy L. Spears National Consultant
Medical/Healthcare Industry Transworld
Systems Inc. provider of GreenFlagSM Profit
Recovery Services An MGMA AdminiServe
Partner November 18, 2008
2
Tracy Spears
  • Ms. Tracy Spears is a National Consultant
    for the Medical/Healthcare Industry and Director
    of Association Business Development for
    Transworld Systems. She has been consulting with
    Transworld for nearly 20 years, focusing on
    health care and medical practices. Ms. Spears
    presented to the Oklahoma State MGMA Meeting in
    October 2007 as well as held an MGMA member web
    cast in April of 2008. She recently presented
    10 Ways to Maximize Effective Collections at
    the National MGMA Annual Conference in San Diego,
    CA. and was instrumental in developing an
    A/R software interface for medical
    practices to increase cash flow and reduce
    workload.

3
Objectives of Presentation
  • Develop internal strategies for effectively
    collecting money
  • Help staff learn what to say to patients in order
    to motivate them to pay
  • Understand what options are available when
    accounts are overdue
  • Know when and how to use those options

4
Collection Challenges Facing Todays Practices
  • Slow paying patients
  • Slow paying insurance carriers
  • Understaffed
  • Trying to work all accounts systematically,
    including small balances
  • Familiarity with collection laws

5
4 Reasons to Collect
  • Accounts depreciate and get harder to collect
  • Complaints increase with time
  • Further medical treatments stop because patient
    avoids doctor
  • Stressful for the staff and the patient

6
Facts about Collections
  • Most medical practices wait until an account is
    180 days past due before they give it to an
    agency for collection

7
Typical In-House Collection Efforts
8
Facts about Collections
  • It costs a practice 31.60 to collect an account
    after its 60 days past due
  • 90 of the collections budget is spent to collect
    10 of past due accounts
  • Delinquent accounts depreciate ½ percent per
    day

MGMA resource center
U.S. Department of Commerce study of
depreciation of accounts held in-house.
9
Start Early Recover More
10
(No Transcript)
11
Facts about Collections
  • There are over 6,000 collection agencies
    operating the United States

12
Facts about Collections
  • The Fair Debt Collection Practices Act (FDCPA),
    the primary federal law regulating third party
    collection agencies, which was enacted in 1977
    with the support of ACA, is designed to help
    protect consumers from unfair and abusive
    collection practices

13
Facts about Collections
  • Average cost for a traditional agency is 30
  • According to the ACA International 2008 figures,
    the average recovery rate for collection agencies
    is 13.8
  • The true cost of collections is the amount of
    money that is not recovered

ACA International 2008 Survey
14
Facts about Collections
  • Smiths Practice
  • 50,000
  • 22 recovery rate
  • Collect 11,000
  • Agency gets 4,510
  • Practice gets 6,490
  • Joness Practice
  • 50,000
  • 10.8 recovery rate
  • Collect 5,400
  • Agency gets 1,350
  • Practice gets 4,050

Additional Net Income 2,440
15
Facts about Collections
  • Most money collected by a third party is from the
    first letter sent to the patient!
  • Working an account internally via phone, has a
    10 chance that the call will get through to the
    patient
  • 90 of malpractice suits are with patients who
    owe money (hold harmless agreement)

16
Top 10 Ways to Increase Cash Flow and Reduce Past
Due Accounts
17
Have a Defined Credit and Collection Policy
  • Policy gives staff a detailed document that they
    can stand behind

18
What should be included in your policy?
  • Initial office visit or upon admission - What
    Payment is required
  • Allowable forms of payment cash, check, money
    order, and charge card
  • Broken appointment charge and policy
  • Patient is responsible for total charge. We do
    not look to a third party for payment
  • Medicare - Medicaid, what policy. Established
    patients only?

19
What should be included in your policy?
  • Office policy on insurance assignment. Full fee
    due now or just estimated deductible?
  • Whether or not service fee is charged for filling
    out more than one insurance form and, if so how
    much? If doctor "participates", how are those
    programs handled differently?

20
What should be included in your policy?
  • Maximum number of payments allowed?
  • Promissory notes or Truth in Lending forms?
  • Interest, billing or service charge - rate and
    when applied

21
2. Make Monthly Statements Effective
  • Send statements promptly and regularly
  • Do not put aging date at the bottom of the
    statement

22
Statement With Aging Dates
23
Make Monthly Statements Effective
  • Do put a due date on the statement

24
Statement With Due Date
25
3. Admit Correct Your Mistakes
  • If patient has not paid because there is a
    billing error, admit it and correct it quickly

26
4. Contact Overdue Accounts More Frequently
  • Contact late paying patients every 10-14 days

27
5. Use Address Service Requested
  • Put address service requested on all
    correspondence sent to patients

28
6. Use Your Aging Sheet, Not Your Feelings
  • Stand by your policy

29
7. Make Sure Your Staff is Well Trained
  • Even experienced staff members can get jaded when
    dealing with past due accounts

30
Qualified Staff
31
Qualified Staff
32
How to Talk to Patients Asking for Payment
  • What you should not say
  • How much can you pay?
  • When can you pay?
  • Can you pay something?

33
How to Talk to Patients Asking for Payment
  • What you should say
  • How much are you short?
  • Will you be in today or tomorrow?
  • Will you be paying by cash, check or credit
    card?

34
How to Talk to PatientsAsking for Payment
  • Empathize with patients situation
  • Remind them of their obligation to pay
  • Get commitment for payment

35
How to Talk to Patients Asking for Payment
  • Convert outstanding balance to a time frame
  • Arrange for bi-monthly payment arrangements

36
8. Know the Warning Signs of Troubled Accounts
  • Account is 45-60 days past due
  • Phone has been disconnected or changed to
    unlisted
  • Partial payments are smaller and sent with less
    regularity
  • Patient says he or she wont pay

37
9. Know Your Collection Options
  • Status quo
  • Write the account off
  • Attorney
  • Small Claims Court
  • Use a third party

38
What Are Your Third-Party Options?
  • Collection Agency
  • Percentage collections agency
  • Flat fee collections agency

39
What to Look for in a Third-Party
  • Proper Accreditation/Licensed
  • Reputable
  • Experienced
  • Easy to do business with
  • Partners with key professional associations

40
Disadvantages to using a Third-Party
  • High cost
  • Alienating the patient
  • Losing control of account
  • Already invested a lot of work to win the account
    over

41
Advantages to using a Third-Party
  • A third party gets the patients attention and
    makes an immediate impact
  • Implications for patients credit record
  • Removes doctor from position of bad guy

42
10. Remember Have realistic expectations of your
accounts receivable program.
43
Useful Resource Links
  • The Association of Credit and Collection
    Professionals (American Collectors Association)
    http//www.acainternational.org/default.aspx
  • The Fair Debt Collection Practices Act
    http//www.ftc.gov/os/statutes/fdcpa/fdcpact.htm
  • National Better Business Bureau
  • http//bbb.org
  • US Chamber of Commerce http//www.uschamber.com/d
    efault
  • MGMA resource center
  • http//mgma.com/resources/

44
GLI GreenFlag/LeonardoMD Interface
  • LeonardoMD Transworld Systems share a common
    objective to
  • deliver greater value to medical practices
    seeking a more efficient
  • collection process. Our collaboration has
    produced an interface that
  • minimizes internal efforts and reduces billing
    expenses for our mutual
  • customers.
  • The GLI is a seamless interface that eases the
    process of identifying
  • and submitting delinquent accounts for outside
    collection activity. It
  • also allows the user to stop outside collection
    activity when payment is
  • receivedall from within the LeonardoMD client
    portal.

45
GLI GreenFlag/LeonardoMD Interface
  • How does it work?
  • The practice determines outside collections
    parameters based on amount, age, and type of
    delinquent balances they want the interface to
    identify for possible outside collection
    activity.
  • The GLI then generates a dialog box of
    identified Delinquent Patient Balances and/or
    Insurance Claims. The client reviews these
    accounts and determines which accounts to submit
    or exclude from outside collection activity.
  • When Payments are Posted in the LeononardMD
    Client Portal they are automatically reported to
    GreenFlag to stop or suspend collection activity.

46
GLI Setup Screen
47
Automatic Submission
48
GLI Webpage Dialog
Identify to submit 3 mouse clicks
49
Thank you.
Transworld Systems Inc. provider of GreenFlagSM
Profit Recovery Services An MGMA AdminiServe
Partner November 18, 2008
50
Questions?
  • Contact Roy J. Gustafson
  • 281-480-1977 ext. 6
  • roy.gustafson_at_transworldsystems.com
  • or
  • web.transworldsystems.com/leonardomd
  • Profit Recovery Consultant Medical/Healthcare
    Industry
  • Transworld Systems Inc.
  • provider of
  • GreenFlagSM Profit Recovery Services
  • An MGMA AdminiServe Partner
About PowerShow.com