Did
you know that the probability of a patient paying his owed amount reduces by
50% the very second he leaves his provider’s office? This is a figure confirmed
by the Medical Group Management Association.
Experts
suggest that ICD-10 transition can hit Revenue Management cycles hard! Claim denials and rejections
are expected to increase by 200% according to studies by Centers for Medicare
& Medicaid Services (CMS). These figures really question the
provider’s ability to manage his revenue cycles.
Follow
these simple yet important steps to ensure timely patient collections to avoid
disruptions in your cash flows during this revolutionary period in the health
care industry.
Transparency-the First Step
Transparency
is one of the cornerstones of on time payment collections in the healthcare
industry. Let your patients know beforehand the ins and outs of a patient’s
healthcare encounter, so that there aren’t any surprises for them at the end of
the day which might affect your revenues.
Identify
the gaps thoroughly and learn where discrepancies lie in terms of communication.
Your patient should know how much the consultation will cost, and through what
mediums it is going to be paid so that they can plan for it in advance and
smoothly make the payment. There shouldn’t be any blame games; the system
should be crystal clear.
Simplify the payment process
Don’t
overcomplicate things. Keep the payment process simple and convenient for your
payers. In addition to ensuring transparency in the system, make sure that
multiple ways are available through which payment can be made at the
convenience of your patient.
Options
of cash, checks, credit cards and electronic funds transfer should be there to
facilitate patients in making their payments. Online payment options also
facilitate in collecting data and generating dashboards and reports which helps
in further establishing visibility and a lean revenue cycle. Even Automated
Clearing House (ACH) payments should be made allowable.
Advanced payment solutions
With
the advent of advanced payment solutions, lives of both provider and patients
have become easy. Through these the responsibility gets shared between the
provider and the patient. Provider can provide estimates of the costs to the
patient beforehand so that patients can mentally plan out their payment
options. These also help the administrative staff to calculate a patient’s out
of pocket costs and further identifies patients with HDHP’s.
These
not only help in freeing excessive cash flow but also relieve patients from the
stress, over all improving revenue collections. This also further adds to
patient’s confidence in the professionalism of the provider and leads to a
mutual relationship of trust.
Payment collection during service
Collect payments at the time of service! Yes
you heard it right. It’s important because given the changes which ICD-10 will
bring in; various providers will face claim denials due to errors in reporting.
The account receivable durations will increase. Hence it’s vital that apart
from co-payment collection, you take payments from patients at the time of
service. Ask for their credit card
information on files or provide other payment options whichever suits them the
most.
Commitment is mandatory
Revenue cycle management
isn’t going to be streamlined on it’s on. You need to understand that it’s not
just about revenue anymore, with the fast approaching ICD-10, its altogether
like learning a new language or having a 360 degrees cultural shift.
For
this, you need to stay focused on every aspect of your RCM,
you need to monitor it continuously and eliminate all the non-value adding
steps. It’s important to stay updated on all the regulatory changes associated
with ICD-10 and the Affordable care act.
Know all the policies, guidelines and system changes which are required
to make sure you’re in the right direction.
Technology
can only facilitate in a smooth transition to ICD-10 and Improvingrevenue cycles, however it alone cannot guarantee success until and unless
full commitment is shown on your part. Like they say you can lead a horse to
water, but you cannot make it drink.
Download
this whitepaper to read more on improving your revenue management cycles.
ICD-10 Conventions and Guidelines from CureMD on Vimeo.
