The Good:

1. Efficiency: Billing software can significantly increase efficiency by automating repetitive tasks, such as data entry and invoice generation. This can save time and reduce the risk of human error.
2. Accuracy: Modern billing software is designed to be highly accurate, reducing the likelihood of billing errors that can lead to financial disputes or regulatory issues.
3. Cost Reduction: Using billing software can reduce the need for extensive manual labor, leading to cost savings in terms of employee salaries and operational expenses.
4. Data Security: Good billing software often includes robust security features to protect sensitive financial data from breaches and cyberattacks.
5. Analytics and Reporting: Many billing software solutions come with built-in analytics and reporting tools, allowing companies to gain insights into their financial performance and make data-driven decisions.

The Bad:

1. Cost of Implementation: Implementing billing software can be expensive, including the initial purchase cost, training, and potential customization to fit the company’s specific needs.
2. Learning Curve: Billing software can be complex, and employees may require training to use it effectively. This learning curve can lead to temporary disruptions in operations.
3. Dependency on Technology: Relying heavily on technology can be risky if there are system failures, technical glitches, or if the software becomes outdated.
4. Security Concerns: While billing software can enhance security, it can also be vulnerable to hacking and data breaches if not properly protected and maintained.
5. Lack of Customization: Some billing software may not fully meet a company’s unique requirements, necessitating additional development or workarounds.

Regarding the billing company’s usage of the software, it’s crucial for them to:

• Understand the Software: The billing company should have a thorough understanding of the software’s capabilities and limitations to maximize its benefits.
• Employee Training: Adequate training programs should be in place to ensure that employees are proficient in using the software efficiently and securely.
• Procedures and Compliance: The billing company must establish procedures that align with industry regulations and best practices to ensure compliance when using the software.
• Regular Updates: Keeping the software up to date is crucial for security and taking advantage of new features or improvements.
• Data Backup and Recovery: Robust backup and recovery procedures should be in place to protect against data loss.

In conclusion, while billing software offers numerous advantages, it’s essential for billing companies to carefully consider both the advantages and disadvantages and take steps to mitigate potential pitfalls. Proper education, training, and procedural safeguards are crucial for harnessing the full potential of technology in billing operations while minimizing risks. Fortunately, Merem Healthcare Solutions encompasses ways to mitigate both the bad and good in technology, so you don’t have to worry about anything related to your revenue cycle management operations.

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Collecting new deductible payments for medical services up front can be uncomfortable,  but it is something that needs to occur for the cash flow within your medical practice to be moving in the right direction. With many patients’ deductibles starting over at the beginning of the year, the team at Merem Healthcare Solutions wants you to understand just how important it is for the front office of your medical practice to take payment when signing in a patient at your practice.

Handling the Collection Process from the Start

The goal of your medical practice is to provide high-quality, healthcare services in a caring and comfortable environment. In order to do so while offering state-of-the-art equipment as well as pay for experienced team members, you need to have a positive cash flow happening within your medical practice.

Let’s take a look at three ways your medical office can efficiently handle patients’ deductible collections upfront without sacrificing quality care or seeming “uncaring” by patients.

Establish a Collection Policy

One of the best ways to increase cash flow for your medical practice in the new year is through establishing a collection policy for your office so that all patients are aware of what is expected upon their arrival. This collection policy will not only help your patients but also your front office staff so that it is seen as just that – policy – and not of team members lacking sensitivity toward patients.

While there are other avenues in which medical practices receive funding, such as insurance companies, a patient’s payment does make-up a good amount of the overall total. A collection policy can assist medical practices in avoiding non-payment by patients who visit for medical care.

Train Front Office Staff Appropriately

While it might be beneficial to train all medical team members on how to properly accept payments from patients, it is definitely wise to ensure optimal training is given to front office team members, especially since they are the first person a patient sees and the person most likely to be asking for/collecting payments.

Train your front office team members on

1. How to handle requests for payment.
2. And, what to do should a patient become angry about needing to pay upfront.

In addition, it might be best practice to teach front office team members on giving patients a heads’ up during reminder calls on how much will be due at the time of arrival. This way the patient is already notified and aware of how much the office visit will be when they come for their appointment.

Consider Offering Financial Assistance

Chances are high that your specialty medical practice sees uninsured and underinsured patients. Therefore, your medical practice should consider offering financial assistance to those patients who qualify, especially since this program can help both you and the patient.

For most specialties, offering a financial assistance program, such as Care Credit, from the beginning of treatment is a lot easier to collect payments rather than trying to get financial assistance for a patient after he or she has already been treated. As a result, your medical practice could end-up not receiving payment at all.

Merem Healthcare Solutions offers services for every step in a practice’s revenue cycle management. We can start from the beginning from credentialing and end with payment posting once an account has been satisfied. We offer a wide range of solutions which include auditing, billing, coding, consulting, credentialing, payment posting, practice management, and patient pre-collections training. Check us out on our website or feel free to call us to see how we can help run your practice like a well-oiled machine – (205) 329-7519.

The post New Year, New Deductible Collections! appeared first on MEREM Health.

• Reduce labor costs.
• Increase availability for patient scheduling
• Eliminate the cost of recruiting and training
• Improve accuracy and reduce claims denials
• Lower continuing education expenses in your medical billing and coding departments

Improvement in just one area of your medical practice can mean a significant improvement to your revenue cycle. However, with the many outsourced healthcare solutions that MEREM Health delivers to specialty medical practices, our experienced team can become a great asset to the overall productivity of your practice.

As an outsourced healthcare solution specializing in the areas of coding, billing, revenue cycle, and education, we see the benefit of having more knowledgeable people in the field with billing and coding to support practices. As an outsourced solution, and practice management consulting partner, we can help reduce the overspending and waste when it comes to the healthcare operations.

When to Consider Outsourcing?

Typically, a practice manager considers outsourcing their billing for one of two reasons.

Either their collections are too low, or their overhead is too high.

Chart A

When to Consider Outsourcing

Outsourcing your billing and collections is a valuable investment for a practice manager pursuing timely collections and a streamlined front office.

If you are unaware of the current state of your medical practice’s financial health, or if you are seeking an annual industry benchmark comparison, you may find it valuable to request a Revenue Cycle Audit.

These assessments help practice owners identify areas of weakness within their revenue cycle process.  And that information can be used in assessing and selecting the right outsourced solution to meet the needs of your practice.

5 Steps to Conducting an Assessment of your practice versus an Outsourced Medical Solution

1. Analyze net collection ratio, length of time it takes to receive payment for services provided and the way staff manages claims that are denied.
2. Review the number of employees to determine if additional staff is needed and whether your practice is willing to pay for the additional training, technology costs, and benefits.
3. Compare outsourcing services to determine what sets them apart.
4. Ask outsourcing vendors if they charge a fixed monthly fee or if they are paid based on a percentage.
5. Evaluate and compare your current cost for collections to the cost of outsourcing.

Once you have successfully completed your assessment, you will need to factor in your practice’s actual and allocated costs (payroll, benefits, training cost, etc.)  To calculate your internal costs as a percentage of billing and collections, take your total billing and collection costs and divide that by your annual collections (Chart B). Compare your results with a vendor to see what works for your practice.

Chart B

Calculating Internal Costs to a Percent of Collections

Annual Collections

$4,000,000

Salary, Wages & Benefits

$198,149

Statement Costs

$13,800

Server Costs

$2,175

Software Costs

$10,980

EDI Costs

$5,125

Training Costs

$5,000

Staffing Turnover Costs

$4,000

Communication

$3,000

Real Estate Occupancy

$12,000

Lost Revenue as Result of 5% Errors

$150,000

How Can I Outsource?

If your practice is interested in outsourcing your medical billing, collections and credentialing, please contact MEREM Healthcare Solutions for more information.

Outsourcing medical billing and coding significantly increase a physician’s confidence that the billing is handled accurately and efficiently. Merem Healthcare Solutions eliminates time, frustration, and expense associated with building and maintaining skilled professionals needed to achieve optimal reimbursement in the ever-changing and very challenging insurance industry. Above all, Merem clients know their business interests are in the hands of competent committed professionals.

The post Why Should I Consider Outsourcing My Medical Billing & Coding? appeared first on MEREM Health.

Optimizing Patient Collections

Long gone are the days of $25 co-pays and $250 deductibles. With the increasing prevalence of high deductible insurance and patient cost-sharing plans, it has never been more important to the financial health of your practice to have an efficient patient pre-collections program in place. Less than 50% of these up front balances are ever recovered, placing a great burden directly on a clinic’s revenue due to “bad debt.”

At this year’s mid-year mark, can your practice afford your current record of unpaid bills in write-offs?

3 Steps Toward Optimizing Patient Collections

Clinical staff play a key role in patient collections. At Merem Healthcare Solutions, we work with our client partners to develop a Patient “Pre-Collections” strategy that is both aggressive and fair. Following these three tips will help your clinical staff to develop a Point-of-Service (POS) collections process to effectively collect more money up-front.

1. Constantly update a record of unpaid bills and review it with upcoming appointments.

Typical patient collection efforts only go as far as issuing statements and generating “bad debt” reports of accounts that need to be turned over to collections.

We can provide you with custom reports such as a payment plan list, to aid in POS collection efforts and to ensure patients meet their terms

2. Clearly communicate with your patients that outstanding bills are expected to be paid prior to their clinic visit.

When you can discuss these matters prior to the procedure date, patients are more likely to be receptive and proactive rather than distracted or caught off guard and agitated about any unexpected financial obligations. Also, you will help patients to better prepare financially for their visit and open the opportunity to provide payment options prior to sending to collections.

With MEREM Health, you will have the added support of a patient collections representative to support your billing team. Our patient collections reps work diligently to collect patient balances in full or to make payment arrangements within 90 days and will help you identify and transmit delinquent accounts to a third-party collections agency of your choice.

3. Train your clinic staff to prompt the patient for payment

This is a guaranteed technique in the effort to increase practice revenue but it requires a strategic and passionate approach. As you inform patients’ preemptively of what they will owe for their care, the more likely you are to get paid.

Discussion of a patient’s financial obligation should begin prior to receiving treatment. Many consumers lack a clear understanding of their insurance coverages and are often unable to determine their financial responsibilities themselves.

Keep explanations simple in order to help ensure patients understand what is expected of them and help avoid confusion or discourage them from listening to or reading information. Also, be sure your staff are prepared and available to answer any questions.

For more information about our Patient Pre Collections Services, visit our website. www.MEREMHealth.com

MEREM Healthcare Solutions is a Birmingham, AL-based company that has been providing exceptional medical billing and coding services to physician practices and ambulatory surgical centers since 2008. We pride ourselves on not just maintaining, but exceeding, the level of accountability, communication, and customer service that is valued in traditional, on-site billing departments.

Please check out our other blog posts, or contact us to learn more.

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Bracket Creep happens when receivables continue to age, moving from one period to another (ie: 31 days to 60) without improving.

If the accounts are getting older, the office may have a collection problem. The practice may not have a procedure for receivables collection or, if it does, the office staff may not be following it. It could also mean the office is understaffed and may need to hire someone to help with the billing and collection.

With a typical Medical Billing company, their patient collection efforts only go as far as issuing statements and generating “bad debt” reports of accounts that need to be turned over to collections. When accounts reach this point, we have found that less than 50% of these balances are ever recovered.

At Merem Healthcare Solutions, we work with our client partners to develop a Patient “Pre-Collections” strategy that is both aggressive and fair. We work with your front office staff and management to develop a Point-of-Service (POS) collections process to effectively collect more money up-front. Additionally, you will have the added support of a patient collections representative to your billing team. Our patient collections reps work diligently to collect patient balances in full or to make payment arrangements within 90 days and will help you identify and transmit delinquent accounts to a third-party collections agency of your choice.

Contact us for a free assessment of your patient AR to see how much money you could be leaving on the table!

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