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

Maintaining Financial Health While Moving to Value Presented by: Leslie Reardon & Betsy Green Commerce Bank

Enhanced Revenue Cycle Solutions Agenda Accounts Payable Automation Patient Receivables Financing • Examine current trends impacting the healthcare revenue cycle Lockbox Receivables • Discuss tools for healthcare providers to Automation help streamline operations, improve Virtual Cards efficiency and increase cash flow Online bill payment Eligibility verification Patient Payment Merchant Services Remote Deposit 2

Healthcare Industry Challenges 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…” Payment is shifting from pay for service to Value-Based Purchasing. Providers must adjust and invest in new structure that accommodates 3 the emerging payment model

Enhanced Revenue Cycle Solutions Important Goals for Effective Revenue Cycle Management • Improve cash flow • Reduce days sales outstanding (improve posting timeliness) • Create good patient experience • Effective denial management • Regulatory compliance Industry experts recommend providers have six month of excess cash to mitigate potential ICD-10 cash flow impact. 4

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 Patient Receivables Financing Accounts Payable Automation Questions? Lockbox Receivables Automation Virtual Cards Online bill payment Merchant Services Eligibility verification 6 Remote Deposit Patient Payment