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Posted by Victoria in Revenue Cycle Management | comments
It is a strange paradox. As the healthcare industry transitions towards integrated, cost-effective business models, the revenue cycle of medical practices, has become more fragmented and expensive.
Payer reimbursement cuts, drastic increase in consumer payments and regulatory changes are challenging traditional, antiquated approaches to revenue cycle management. According to a survey by PwC, one in two, Americans, rate hospitals poorly, for affordability of services and price transparency.
To survive in the New Health Economy care providers should focus on patient care. But there are bills to be paid to keep the lights on! Fortunately, a healthy revenue cycle and good patient care needn’t be mutually exclusive terms any more. There are ways to build a strong and sustainable revenue cycle while still focusing on patient care. Here are five ways healthcare organizations can stay successful in the consumer directed healthcare environment.
1. One in four claims are rejected due to insurance eligibility errors and incomplete information.
St. Luke’s hospital was able to increase collections by placing calls to patients, prior to their visit, and discuss price estimates. This system has helped the hospital in educating patients about their financial responsibility and has increased net collections.
2. Improve the patient billing experience. Straight out of a can patient statements and sporadic follow-up calls won’t work. Financially engaging patients is vital in the post-reform climate. High deductible health plans are posing a huge challenge to care providers. Explain the patient billing process and payment options before care begins and simplify the transaction as much as possible.
3. Tired of handling no-shows? According to MGMA, medical practices experience an annual no-show rate of 5-8%. At an average of $150 per appointment the amount of dollars lost, can add up to thousands every year.
4. Do you know that the possibility of collecting payment drops to 40% once the patient leaves your practice? Physician practices collect just 60% of patient co-payments.
A San Diego based healthcare provider installed 27 kiosks across its 11 clinics. The kiosks were put up to increase patient engagement. The surprise upshot of installing the kiosks was that an increasing number of patients started paying overdue bills. Following a similar strategy in your organization can not only boost patient engagement but also make sure you collect patient payments without much of an effort.
5. Human resources amount for 56% of a provider organization’s operational costs.
A 2012 survey states that 79% of respondents would like healthcare organizations to conduct patient interactions online or through mobile phones.
Small steps in the right direction can help physician practices, to develop an architecture that increases patient engagement and improves the efficiency of their revenue cycle.
Hope you enjoyed our revenue cycle tips to maximize your collections and increase patient engagement! We will reach you with more insights, strategies, ideas and tips in our upcoming posts. Don’t forget to subscribe! Get our latest post updates in your inbox instantly.
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