Patient balances now account for up to 30% of practice revenues and that may well increase.
A well managed Revenue Cycle is critical to maintaining the financial health of a medical practice.
Unfortunately, with changing diagnosis codes and complicated insurance guidelines many providers don’t get paid as much or as fast as they could. The Federal Government’s Healthcare Initiative has increased many patient deductibles which can further delay the practice receiving full payment for their services.
According to the MGMA, the average cost of patient statements is $3 per statement and the average patient needs to get three statements before they pay. That means it costs the practice $9 per patient and three to four months to collect patient balances. The MGMA estimates that, after all costs are included, the cost of collections for the average practice is 14-16%. Out sourced Revenue Cycle Management can be considerably cheaper and more efficient.
Healthcare Revenue Cycle Management Services
Optimal Revenue Cycle Management Features
- Knowledge of what each patient owes over and above their co-pay available at the time of service
- Easy to set up patient payment programs administered by the patients credit/debit card
- Accurate and optimized credentialing
- Optimized Coding (highest reimbursement with lowest chance of denial)
- 90% of all insurance accounts receivable collected within 60 days
- Better than 90% first pass Acceptance Rate for Insurance
- Re-submittal of any denials within 24 hours
- Quarterly updates on insurance guidelines
- Quarterly updates on payment rates vs. contracted rates