It’s important to know how to use your collection KPIs once you have launched your collections policy. Review your key performance indicators (KPIs) on a regular basis. By keeping an eye on your trends, you will know if you need to adjust your policy or procedures. Here are some examples:
You discover your days sales outstanding (DSO) is more than 50 days. According to your policy, you are sending out two invoices during the first 45 days. You may want to adjust your policy by adding a reminder call between the invoices to help collect the balance sooner.
Continue reading Collection Policy, Part 5: How to Use Your Collection KPIs
Allegiance Group provides turn-key solutions to automate the collection of outstanding balances for healthcare providers. In this article, HME Business mentions Allegiance Group as a provider that can help optimize your revenue cycle management. (The following excerpts are from the article printed by HME Business in June 2019.)
How should RCM work in the world of HME and how can providers use IT to optimize their entire revenue performance?
This acronym-heavy HME industry, you might have come across yet another three-letter abbreviation, RCM. It stands for revenue cycle management, and it could change your business.
Don’t confuse RCM with billing. Billing is the process of filing claims with reimbursement sources such as Medicare or private payer plans. Then it follows up with those funding sources to ensure the claims get reimbursed. RCM is broader than that. RCM encompasses billing and claims management, but it also optimizes how claims denial is handled, how patient co-pays are collected, and how much staff time is expended on claims. Revenue Cycle Management tracks the revenues and costs related to a patient’s interaction with a healthcare provider from the beginning and end of the process. RCM is the umbrella under which all revenues are managed and maximized.
And now, RCM has come to the HME industry. In fact, in some ways, it has been here, thanks to the software systems and services that have proliferated in the HME industry. However, HME software makers have started working with providers in earnest to start defining how RCM should work in the HME industry to help providers overhaul their entire revenue performance — not just refine their billing.
Outsourcing (to optimize your revenue cycle management)
In addition to implementing new software solutions, another option is to outsource parts of the RCM process to third parties. Various third-party companies serving the HME industry specialize in particular elements of billing and claims processing. For instance, one outsourcer, Allegiance Group, specializes in patient pay and another, Prochant, focuses on insurance.
To learn more about how to optimize your revenue cycle management, read the full article in HME Business.
When creating a collection policy, your goal is to create a published document that outlines the company’s collection procedures. It will include a variety of topics from setting up a patient record to processing a payment. Keep in mind, the purpose of the policy is to help establish the collection culture of your organization and define who will complete which tasks throughout the process.
To begin, pull out your current documents. These notes will help you outline what is commonly known as your “workflow.” Your workflow will detail what happens when you receive an order and follows a patient’s journey until their bill is paid. Our patient invoice flow chart will give you some ideas on what to include.
Continue reading Collection Policy, Part 2: Where do I start when creating a Collection Policy?
Each month HomeCare Magazine reaches out to industry experts to help answer questions relevant to HME Industry. This month ‘s topic was Tackling the HME Billing Software Market. Because of his experience, Bruce Gehring, our SVP of Business Development, was invited to answer a few questions. His replies from the HomeCare Magazine’s column on August 22, 2018:
What sets your company apart in the industry?
GEHRING: Allegiance Group offers the industry results for cash recovery and staff efficiency, automated billing solutions compatible with the provider’s software, customizable and patient-friendly communications, flexible payment options to meet customers’ needs, and custom call center services for customer care and billing support.
What are the current challenges in the billing software market?
GEHRING: Three challenges facing HME providers are increasing staff efficiency, improving collections and growing revenue.
How can billing software enhance operations?
GEHRING: With reimbursement cuts and increased patient responsibility, providers need to focus on private pay collections. COLLECTPlus® enables providers to secure payment information up front and engage in an accelerated billing and collection process. This helps providers recover their private pay balances faster and reduce their collection costs.
Want to learn more about Tackling the HME Billing Software Market?
Read the complete column from HomeCare Magazine.
High deductibles, larger copays and HSAs have grown A/R portfolios. How do you slow down the growth? Learn the ratios to track and which processes will help you recover your A/R balances faster, reduce your collection costs and improve staff productivity. Join “Maximizing DME Cash Collections in 2018: 5 Ways to Grow Cash and ROI”
You will learn tips on how to:
• Assess your A/R portfolio’s health
• Establish and introduce financial policies to help your company
• Monitor your progress
• Implement a new culture