Maintaining Financial Health While Moving to Value Presented by: - - PowerPoint PPT Presentation

Presented by:

Maintaining Financial Health While Moving to Value

Leslie Reardon & Betsy Green

Commerce Bank

Agenda

• Examine current trends impacting the

healthcare revenue cycle

• Discuss tools for healthcare providers to

help streamline operations, improve efficiency and increase cash flow

2

Eligibility verification Patient Payment Merchant Services Remote Deposit Lockbox Receivables Automation Virtual Cards Accounts Payable Automation Online bill payment Patient Receivables Financing

Enhanced Revenue Cycle Solutions

Healthcare Provider Revenues are Decreasing:

• Lower reimbursement rates from commercial & government payers
• Days outstanding for patient responsibility payments is increasing
• Bad debt as a percentage of revenue is increasing significantly

Healthcare Provider Costs are Increasing:

• Increased regulation (Healthcare reform, Meaningful Use, ICD-10)
• Higher patient responsibility creates the need for more aggressive and costly collection methods
• Other obstacles:

‾ Antiquated systems ‾ Workflow disruption & expense of new technology ‾ Perceived lack of value: ”If it’s not broken…”

3

Healthcare Industry Challenges

Payment is shifting from pay for service to Value-Based Purchasing. Providers must adjust and invest in new structure that accommodates the emerging payment model

• Improve cash flow
• Reduce days sales outstanding (improve posting timeliness)
• Create good patient experience
• Effective denial management
• Regulatory compliance

4

Industry experts recommend providers have six month of excess cash to mitigate potential ICD-10 cash flow impact.

Important Goals for Effective Revenue Cycle Management

Enhanced Revenue Cycle Solutions

Tactics to Improve Revenue Cycle Management

• Better eligibility verification and transparency of patient responsibility
• Capture more payments at point of service
• Improve receivables processing
• Use technology to automate posting of paper and ERA/EFT reconciliation
• Accept / manage all forms of payment for remittances
• Offer more payment options for patients
• On-line bill payment
• Consider patient receivables program
• Discuss lines of credit and financing options with your bank

5

Enhanced Revenue Cycle Solutions

Summary

Offset added regulatory expenses while improving cash flow by implementing new solutions

6

Questions?

Eligibility verification Patient Payment Merchant Services Remote Deposit Lockbox Receivables Automation Virtual Cards Accounts Payable Automation Online bill payment Patient Receivables Financing

Enhanced Revenue Cycle Solutions