Becker's ASC Review

22 Executive Briefing: Advantages of Upfront Collections Prior to ASC Service Founded in 2005, in2itive Business Solutions is a full-service healthcare revenue management and consultation firm with transparent workflows focused on filing claims, uncovering lost revenue and reconciling accounts. The in2itive leadership team represents more than 75 years of collective experience and together they have recovered more than $250 million in revenue for their clients. in2itive offers both long and short-term contracts, with solutions that include insurance handling, billing services, healthcare coding, reporting and more. securing an initial payment is to make sure healthcare con- sumers understands that your office has structured payment protocols. Providing a detailed patient estimate, such as those created with the in2itive Patient Estimator Tool, tells patients that your facility is a professional and well-structured organization with specific pay- ment requirements at the time of service. Furthermore, collecting an initial payment from patients before or at the time of service, even if a balance remains on their ac- count (you've given them a clear payment timeline in the patient estimate), means they have made a conscious commitment to their treatment and recovery. This is an additional benefit that in- creases the likelihood of the patient fulfilling their payment obliga- tions in full. By presenting patients with a direct contract in the form of a comprehensive estimate with a detailed payment timeline, your facility is granted some assurance that payment can and will be collected at the time of service, rather than being chased on the backend. 4. Remove ambiguity from the process. When it comes to payment collections and working with patients, we strongly believe that knowing is half the battle. When you pro- vide a comprehensive patient estimate, with clear explanation of what payments are due and by what dates, you leave no room for ambiguity — when patients know and understand their obligation, they are more likely to fulfill it. This is yet another way in which the in2itive Patient Estimator Tool makes your job easier; it produces a detailed estimate that includes insurance carrier information, procedure details, copay and deductible requirements and a clear breakdown of the pa- tient's financial responsibility. When your facility applies a program like this consistently, you will see an almost immediate increase in monthly cash flow; you'll also reduce your office's burden of collections by limiting the num- ber of days an account spends in A/R and, by extension, reduce bad debt. 5. Shorten accounts receivable days with better claims organization. According to the ASC Intellimarker Survey (2011) from VMG Health, nearly 16 percent of all participating facilities were strapped with accounts more than 120 days outstanding — not a good sign on the cash flow front. The reality is this: if an account is allowed to become more than 90 days old, the likelihood of collecting what's owed drops by 40 percent to 80 percent. Why? Because once you've treated a pa- tient and s/he is no longer in pain or danger, that person feels a little less inclined to pay. The obvious solution is to collect, or at least begin collecting, patient fees before services are rendered. This is way estimation and collection tools, in addition to estab- lished payment protocols, become most handy. And remember what it costs to send out patient bills every month? Consider what your facility could do with an extra $9,600 to $14,400 every year — and make every effort to begin collections upfront. Plan Simply, Save Big Surgery center and hospital business offices are always on the hunt for new and innovative ways to improve A/R and increase cash flow, but the truth is you should start simple and nail down the basics. Prepare yourself and your facility for increased finan- cial risk when dealing with patient payments, and then work with office staff in knowing what information to present so patients are primed for and aware of their financial obligations. Once you've got the basics in place, know that programs like the in2itive Patient Estimator Tool can be a simple but dynamic and truly valuable means of asking for—and getting—what your facil- ity deserves. n "When it comes to payment collections and working with patients, we strongly believe that knowing is half the battle. When you provide a comprehensive patient estimate with clear explanation of what payments are due and by what dates, you leave no room for ambiguity." – Jocelyn C. Gaddie, Vice President, Business Development at in2itive Business Solutions

• Cover