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presentation

Cash Flow

Improving Multi-Million Dollar Practices’ Cash Flow

Hospital administrators of large hospitals and multimillion dollar practices have to deal with a large number of challenges, specifically those related with billing as well as collection services. Lost charges, inaccurate coding, improper account receivable management can ultimately cause medical practices to lose a large chunk of their revenue. This can ultimately result in operational problems and financial delinquency in extreme cases.

Medical billers and coders' expertise in medical billing as well as revenue cycle management ensures that multimillion dollar practices enjoy increased collection, reduced denials, reduced costs and improvement in gross margins. Multimillion dollar practices need a streamlined revenue cycle and this can ensure that each claim is processed and followed up accurately. This in turn can help practices reduce their operative and administrative costs and further push the profit margins. However many practices do not have adequately trained, experienced staff or the staff is often caught up in administrative duties.

Problems experienced by multimillion dollar practices:
  • Billing errors is a phenomenal problem in most hospitals and research studies indicate that as many as 80% of the bills contain errors. Consequently multimillion dollar practices are likely to lose out on medical billing claims, if they are rejected by insurance companies on detection of errors. In the event of an error, the process of fixing it and sending a claim again can be long drawn out.
  • With changing billing rules as well as regulations, physicians as well as administrators may find it difficult to keep themselves updated about the changes. Providing adequate training to the staff can prove to be an expensive and time consuming affair. Consequently in house management of medical billing issues may become impractical for hospitals and multimillion dollar practices. Medical billing professionals with adequate training, experience and knowledge of latest regulations and changes can help medical practices enjoy increased cash flow.

* Survey conducted by Medical group Management Association

Most multimillion dollar practices are not adequately equipped to handle the intricacies associated with claims processing as well as accounts receivable. It is critically important that the optimum period of outstanding for accounts receivable is between 60 to 90 days. If the outstanding period extends beyond 120 days then the hospital or practice is not economically healthy and is considered to be in eventual danger.

Most in house medical billing teams tend to concentrate on the fresh account receivables and ignore the older A/R. Consequently there is an increase in delinquent accounts and this has a direct impact on the revenue flow within the practice. Ideally the aging of the A/R, if done should resemble a bell curve (inverted) once the receivables are charted. So there should not be excess of accounts over 90 days.

Ex: A practice with $150,000 of A/R must have an optimum aging as below
* Survey conducted by Medical group Management Association

MBC Assurance:
  • We at MBC assure a phenomenal change in your AR and collections within the 60 days of service embarking with our specialists
  • The ideal bell curve is achievable for your practice with our 5 day analysis program which we conduct in your premises and processes
  • Post analysis, the implementation plan is signed off with the decision makers and process owners in your practice
  • Implementation success stories are shared at regular intervals; we call them REPORTS

Shortening the receivable cycle is our goal, how we do it, is our expertise!

MBC's experience in end to end revenue cycle management, knowledge plus application of best industry practices and their ability to customize solutions according to the requirements of the healthcare practice makes them the ideal medical billing partners. Through use of cutting edge technology and software tools, MBC delivers precise solutions to support the revenue challenges of multimillion dollar practices.