You feel it every month—the squeeze on your practice profitability. In addition to the SGR fix that may or may not happen, there are so many other pressures on your practice that it only makes sense to maximize profitability wherever you can.
That’s where your practice management software should help. Here are a few ways you can use your PM/medical billing software to find additional monies on the bottom line:
- Review your financial reports monthly. It’s amazing how many providers don’t look at their financial reports; this is a key opportunity to see monthly how your practice is performing financially and make changes. Best of all is to review a dashboard in your medical billing software monthly (or more often); with MediTouch dashboards, you can track Revenue, AR, Payer Performance and much more with easy to read visuals including graphs and charts.
- Look at your A/R and see how well your practice is collecting what it’s owed. Check Days in Accounts Receivable, which represents total accounts receivable divided by the average daily charges for a specific timeframe. For example, for one year the formula is Total AR/Gross Charges x (1/365). The A/R days formula shows how long it takes to collect your money once you’ve seen the patient and filed the claim. Also review Days in Accounts Receivable Over 120 Days. This means you look at your AR aging and identify the monies outstanding for more than 121 days. According to MGMA, this is a sensitive indicator for the effectiveness of your collection team. For both of these measures, the lower the number the better.
- Make sure that you’re getting the charges from the exam room to the biller as quickly as possible. Delayed coding = delayed payment. That’s why you want to be able to chart and code in the exam room—and send the charges electronically to your biller. With electronic submission there is never a lost superbill!
- Check eligibility – and check it again. Especially with the ACA (aka Obamacare) changes taking effect in the first quarter of this year, your practice is at risk of seeing a higher percentage of patients who are not insured at the time of care. Make sure your staff is checking eligibility before the appointment, and asking for copayments and deductibles up front. Good news: MediTouch web-based practice management software allows you to create a chart right from the eligibility check, so that you know the patient information matches the payers’, and it also allows you to schedule a recheck of eligibility again before the appointment.
- Check the trend of No Show Appointments in your practice. You should be able to look at this report in your medical billing software on a regular basis, and make adjustments to scheduling and appointment reminders as needed. If no-shows are high, consider increasing the number of patients booked per hour, and testing new reminder methods such as emails and messages through your patient portal.
There are many other steps you can take to improve your profitability, and we’ll cover them in this blog over the next few months. In the meantime, get our free interactive Q&A, “8 Ways to Unlock the Profitability of Your Practice with Your EHR/PM” for additional ideas on improving your bottom line this year.