EHR Is an Opportunity for Your Medical Billing Service

Kareo May 1st, 2013

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There is more and more pressure on medical practices to implement an electronic health record (EHR) solution. If you think this doesn’t have an impact on your medical billing service, think again. Helping your clients to take this step and make the right choice is a great opportunity for your billing company. Not only does it help position you to be more of a resource and advocate for your practice clients but it also helps improve their medical billing and cash flow.

The fact is that implementing an EHR does affect billing operations. It can improve documentation to help create more accurate claims and allow you to provide more comprehensive backup when payers have questions about claims. In addition, having an EHR will make the transition to ICD-10 easier when it hits in 2014 and it can set your customers up to attest to meaningful use—enabling them to access incentives and avoid Medicare penalties down the line.

The problem for many practices, especially smaller practices, is that selecting and implementing an EHR can be challenging.  Anything you can do to help simplify the process and keep their revenue cycle on track will be helpful.

While your billing service may be perfectly positioned to help your clients, you might be concerned about taking on a new line of business. Luckily, you probably already have strengths that you can leverage and there are some simple changes you can make to fill in the gaps.

  1. Technology: You already provide technology and services to your customers. Utilize your current expertise in communications, hardware, and user support. You may also already have a relationship with a vendor or vendors who offer EHR solutions that are integrated (or closely interfaced) with your existing practice management and billing solutions. Talk to these vendors about the support resources available to help you and your clients.
  2. Workflow Design: To maximize revenue for your customers, you have designed effective workflow processes to maintain optimal efficiency. Use these planning and organizational skills along with your deep understanding of medical practice operations to help practices implement and adapt to the workflow changes that come with an EHR.
  3. Training: Many EHR companies provide training for their products. Take advantage of all the training available and assign super users within your company who can support both your staff and your clients. In addition, the HITECH initiatives provided education across the country. You may want to consider hiring an EHR-trained staff person to support your new services (or training someone already on staff).

If you haven’t already looked at adding an EHR to the line of products and services available from your medical billing company, the time is now. There are affordable cloud-based EHR solutions that integrate with billing systems, making it easier than ever for you to provide intuitive, easy-to-use options for your clients. As a result, you can help them improve patient care while also enabling them to increase revenue, access incentives, and avoid Medicare penalties. By expanding your service offerings you become more than a billing service—you become a practice management partner for the long term.

Watch for our next post on how you can help your clients assess their EHR needs and prepare for this new technology.

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10 Questions to Ask before Hiring a Medical Billing Service

Kareo February 26th, 2013

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If you have decided to hire a medical billing service for your practice, you now have a big decision to make—who will you choose to manage this crucial aspect of your business’s success? There are a lot of choices out there. You may have some questions that are specific to your needs, but the following ten questions should apply to any practice. Ask them to each service you speak with and then compare the answers.

  1. What will it cost? This is always the main thing on everyone’s mind. The rate should be under 8% of collected charges. A percentage is a better option than a flat rate—the percentage usually goes down as your collections go up. Also ask about start-up fees, termination fees, data conversion fees, and any other additional costs. Some companies charge extra for patient collections follow up and other services.
  2. Can they provide references? Have they worked with practices that are similar to yours in size, scope, and/or specialty? Do they have testimonials, or can you call someone directly for a reference?
  3. Who owns your billing data? Your billing data should belong to you, and you should be able to take it with you if you choose to change services or bring your billing in-house.
  4. What kind of training does the staff have? Are they certified? What type of ongoing training do they receive? Are they using the most up-to-date resources and guidebooks (i.e., CPT, HCPCS, etc.)?
  5. Do they have any professional affiliations? Does the service, or its employees, maintain any professional affiliations such as HBMA?
  6. Do they have a compliance plan in place? Are they HIPAA compliant? What are their security protocols?
  7. Who will actually be working on your account? Can you meet (on the phone or in person) the actual people who will be working on your account?
  8. Can you get a guarantee of transparency?  How often will you receive reports showing the financial state of your business and the billing service’s progress. How will they communicate with you and how involved will you be in the billing processes?
  9. Are most of their services electronic? In this day and age, most of the processes should be electronic from eligibility verification to remittances. They should also offer credit card processing and online bill pay for patients.
  10. Are there billing follow up items that they don’t handle? Don’t assume that a billing service will do everything or that everything is included in your rate. Ask up front and be sure you know if there are services that they don’t offer.

Use these questions to help guide your decision when selecting a medical billing service. It’s worth it to take your time evaluating your options so that you get the best service possible from the start.

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Is Outsourcing Your Medical Billing the Right Choice?

Kareo February 11th, 2013

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Many medical practices consider outsourcing billing at some point. There are a lot of reasons why a practice might opt for outsourcing, but the truth is that it isn’t for everyone. The best way to decide if outsourcing is for your practice is to analyze the pro’s and con’s and ask yourself a few basic questions about your business.

First answer the following:

  1. Are you a new practice?
  2. Is billing for your specialty especially complex?
  3. Have you had a high turnover of billing staff or is there a lack of qualified billing staff in your area?
  4. Are your billing processes inefficient (i.e., high denial rate, high A/R, low patient collections, etc.)?
  5. Would you rather focus more on patient care and less on business management tasks?

If you answered “yes” to most of these questions then outsourcing might be a better fit for your needs. However, there are pro’s and con’s to both ways of doing your billing. Simply put, in-house billing allows you to have total control over your billing processes but it also means managing staff, paying more for full time employees, and opening yourself to problems ranging from poor training and job performance to embezzlement.

On the flip side, if you use a reputable billing service, you should see lower costs with a good return on your investment. Generally, you can expect a certain level of results and consistency in performance. The downside is that you will have little control over the process and the cost may vary based on your claim volume at any given time.

To assess the pro’s and con’s for yourself use this simple checklist:

  1. Would you prefer to hand over control over the daily billing process?
  2. Are you concerned about the time and cost involved in managing more full-time staff?
  3. Are you worried about the possibility of embezzlement or negligence in your billing?
  4. Would you rather pay a small percentage of your claims than a full-time salary?
  5. Are you comfortable with the varying cost of outsourcing billing tasks?
  6. Are you looking for more comprehensive reporting and substantial analysis of your business?
  7. Are you concerned about staying on top of changing reimbursement and compliance issues?

If you answered mostly “yes” again, then it is probably time to consider an outsourcing solution. Watch for our next post on outsourcing your billing, Ten Questions to Ask Before Hiring a Billing Service.

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Managing Receivables in Medical Billing: Which Method Works for You?

Amber M. Baylor, M.S., CHBME June 28th, 2012

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Managing Receivables in Medical Billing: Which Method Works for You?

As a business manager, business owner, or someone tasked with getting paid by the various payers & patients, what do you use to track the revenue for your practice?  In this article we talk about the types of reports for managing receivables in medical billing as well as their strengths and weaknesses.  We also include a little history lesson on the evolution of the reporting metrics as billing rules and strategies have changed over time.

A couple of months back I was curious as to what report the typical billing services business owner uses. After talking to some of our clients and crowdsourcing the question to some prominent billers on Twitter, the overwhelming response was accounts receivables or A/R.  A/R measures the monetary value of the money received vs. billed by the provider or health care system. 

You can measure A/R by:

  • Number of days payment taken to receive (i.e. 0 to 30 days, 31+-60 days, etc.)
  • Amount of A/R outstanding by which payer
  • Amount of A/R outstanding by the patients

A/R provides a great view of the macro or $10,000 foot level of our practice or client. 

Another measure of the overall performance of billing operations represents gross days receivables outstanding (GDRO).  GDRO measures the average time it takes for A/R to turn over completely.  You may have heard of GDRO as days outstanding, gross days outstanding, days, or gross days. 

GDRO can be calculated by:

Gross A/R (averaged over the last 3 months) divided by the Average Daily Gross Revenue.

GDRO gained popularity as a measurement tool in the 1980’s when Medicare modified the reimbursement process from periodic interim payment (PIP) to the prospective payment system (PPS).  This shifted payment responsibility from Medicare to the insurance company which turned around and shifted more of the payment responsibility to the patient.

Major advantages with using the GDRO metric are:

  • Evaluation of effective front office payment collection at time of service
  • Determination of how timely collections have been made

Major disadvantages include:

  • Seasonal averages lag time
  • Can be easily manipulated

Another reporting metric is the Net Days Revenue Outstanding (NRDO).  NRDO represents the net or actual amount of receivables collected because the contractual amounts have been deducted from the starting balance.  NRDO is a preferred metric over GDRO due to it providing the manager with a more accurate view of the efficiency of the office staff managing receivables.

I would love to hear from you, so please let me know what preferred measure or report you use to gauge the success of your business.

Amber M. Baylor is the founder of Ask a Medical Biller.com: Medical Billing in 3 easy steps, based in Orange County, CA. Visit her website at http://www.askamedicalbiller.com/

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My Receivables Are Growing: Time for a New Billing Service?

Laurie Morgan May 15th, 2012

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When receivables balloon, that could be a sign that your billing service is not as on top of things as it should be. But it's not the only possibility

We’ve received several calls recently from physicians looking for referrals for new billing services.  The reason?  “Our receivables are out of control.  Our billing service just isn’t doing a good job.”

When receivables balloon, that could be a sign that your biller is not as on top of things as he or she should be.  But, that’s not the only possibility.  If you jump the gun and replace your in-house biller or billing service without understanding all of the drivers of higher receivables, you could end up worse off than you started.  Some other potential causes for growing receivables that you should investigate:

  • Are you collecting deductibles – or billing for them?  Funny how these “I need a new biller!” calls tend to come more frequently in the beginning of the year – when patients’ deductibles are reset, and patients will be responsible for your entire allowed revenue in many cases.  Too often, practices just get into the habit of billing for these amounts, instead of collecting at time of service – usually because “that’s how we’ve always done it.”  Once you decide to bill the amount instead of collecting it, you’ve significantly reduced the likelihood it will be paid promptly – and introduced the possibility you won’t get paid at all.
  • Are patients prepped for payment at visit time?  Patients who arrive at the practice without being forewarned about what they’ll be expected to pay are much more likely to request that they be billed – and then to be angry or confused when they receive the bill so many weeks later.  Work with payers to determine patient responsibility before the patient’s appointment, and then let patients know what they’ll be expected to pay when you make their reminder call – including clearing of past-due balances, if any.
  • Are you making it easy for patients to pay?  If a patient has a high deductible or large balance, or is about to undergo an expensive procedure, paying in full by check at the time of service may be impossible.  Be sure you accept all major credit cards to make it easy for patients to pay when cash is short (this way, they’ll make their payments to their credit card company – and your staff won’t have to become collectors).  Investigate specialty lending options for patients for significant expenses like elective surgeries.
  • Are your office staff members aware that billing starts with them? Too often, compartmentalized job responsibilities obscure the contribution everyone in the practice should be making to bringing revenue in the door.  With about a third of most practices’ total revenue now due from patients, today’s revenue cycle is about more than just third-party billing.  Make sure your front desk staff, in particular, understands that the practice is entitled to be paid for its services – asking for payment at the time-of-service is nothing to feel awkward or embarrassed about.  A weekly audit of superbills can be a great tool to assess front-desk consistency in collecting from patients – if they’re not doing so close to 100% of the time, corrective action is needed.
  • For insurance-side receivables, are you seeing patterns?  If reimbursement revenue is slowing, it’s helpful to analyze whether it’s happening across the board – or if a single payer is causing the bulk of the problem.  If repeated denials and appeals are to blame, is a repeated coding or documentation error occurring?  And if a payer is becoming increasingly difficult, your biller may need to request a new support contact at the payer – and, if the relationship and reimbursement reliability can’t be improved, you may eventually need to consider whether to renew your contract with a difficult payer.

Laurie Morgan is a management consultant with Capko & Company. She specializes in marketing, management and technology for medical practices and blogs about practice management issues at www.capko.com/blog. Laurie has a BA in Economics from Brown University and an MBA from Stanford. Laurie recently wrote for Getting Paid on Hidden Ways Medical Billing Shortcomings Hurt Your Practice and Keeping Tabs on Payer Contracts – Good for Your Practice and Your Patients, Too.

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Four Questions to Guide Your Clients about EHR Selection and Implementation

Ron Sterling April 9th, 2012

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Many physician practices are justifiably ambivalent about putting in an EHR.  From resistance to change to the upfront costs with uncertain returns, many of your physician clients are fighting the push to implement an EHR.  Indeed, using an EHR will not necessarily save the physician time and Medicare EHR Incentives of up to $44,000 per eligible provider may not cover the complete cost of an EHR implementation.

With so many questions and even more confusing answers, it may be tempting to stay away from the whole matter and stick to your billing business.  However, the EHR decision is one of the most important and vexing issues that your clients face.  Their decision on EHRs will affect their practice and your ability to serve your clients.  Consider the following questions as you advise your clients on this important issue:

1.    Is the practice ready to use an EHR? – In the rush to collect the $44,000 Medicare incentives, many practices overlook whether they have the time or resources to implement an EHR.  From time needed to pick the right product to moving patient information to the EHR, EHRs will require physician involvement and may require additional resources to make the transition.  This level of commitment should be understood upfront.  Otherwise, the goals and plan for the EHR can become distorted or impractical.  For example, a number of practices have tried to implement EHRs during their busy seasons, or with reduced staff levels.  In other cases, EHR plans have not addressed a lack of computer skills among staff and doctors.

2.    What are the practice’s expectations for an EHR? – Like anything else, expectations drive the selection of an EHR.  Set expectations too low, and the practice can end up with a product that does not have the features needed.  For example, the ability to annotate an image is critical for an ophthalmology practice, while pediatric practices need a strong immunization management feature.  Practices employing mid-level providers or using collaboration among doctors, nurses and staff to serve patients need an EHR with workflow management tools.  The guiding principal is to set expectations based on what your practice needs to be efficient and effective and not just based on your current paper-bound operation.  For example, tracking future treatment orders should include tools to help the practice manage patient contact and not just record the order information.

3.    Will the client practice be able to take advantage of the EHR incentive money?  – Many practices are still not clear on what they need to do to qualify for the EHR Incentive Payments.  Indeed, a disturbing number of practices may have attested to meet the MU Measures without actually fulfilling the requirements.  As a practical matter, implementing an EHR does not mean that the practice has attained the measure standards.  Some EHR systems calculate the various measures, but many EHR products require the doctor to check a box for each measure even though the information may not have been gathered.  For example, the doctor may check a box that the patient allergies were recorded, but actually recording the allergies is on another screen.  Another challenge is attaining the Meaningful Use Measures for 90 days in the first year and consistently afterwards.  The key issue is that many practices are not allowing enough calendar time to attain their practice goals and Meaningful Use.  Make sure that your client practices give the doctors sufficient time to ramp up to the measures and not focus in on the measures at the expense of accurate records, patient service, and/or physician productivity.

4.    What is a practical plan to implement an EHR for the practice? – Many practices reasonably assume that the vendor will drive the EHR implementation effort.  That is not in the interest of the practice and not really a service that the EHR vendors provide.  EHR efforts must be structured and driven by the physicians and the practice.  Physicians cannot cede control of practice operations or clinical decision making to any outside party.  Additionally, the practice needs to establish the process that will allow the doctors to build confidence in the EHR as well as become familiar enough with the EHR to work with the EHR while serving a patient.  Unfortunately, many physicians attempt to use the EHR without proper training and preparation.  Failing to adequately prepare leads to poor patient and physician experiences.

In the cacophony of voices and messages about EHRs, there are too few sources of rational thought about approaching EHR projects.  By asking a few key questions, you can help your clients understand the scope of the challenge and help them put sufficient analysis and resources to achieve their goals and serve their patients.

Ron Sterling (800-967-3028, www.sterling-solutions.com) publishes the popular EHR Blog Avoid-EHR-Disasters.blogspot.com, and authored the HIMSS Book of the Year Award winning guide “Keys to EMR/EHR Success.” He is an independent EHR consultant. Hear Ron speak in an archived webinar sponsored by Kareo: What You Need to Know About Selecting the Right EHR. Ron most recently wrote for Getting Paid on Why You Need to Build an EHR Capability in Your Billing Organization and How.

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Why You Need to Build an EHR Capability in Your Billing Organization and How

Ron Sterling March 5th, 2012

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The recent release of the Stage 2 Meaningful User Measures clarifies the implications of the EHR deployment for physician practices and increases the urgency for your billing service to establish a role in the dramatic shift to EHR.

For physician practice clients, the reality of colleagues receiving their initial EHR incentive payments and the prospects of delay is having an impact.  If Eligible Providers do not qualify by the end of 2012, they lose $3,000 per provider in incentives.  Delaying until after 2013 will cost each provider an additional $15,000 in EHR payments.  A number of physicians are reassessing their initial ambivalence about the EHR incentives and taking a second look at what they need to do to qualify.  Failure to support the EHR initiatives can strategically impact your physician clients.

The proposed Stage 2 MU Measures expand the use of electronic transactions, require electronic imaging, and raise the bar on the percentages to qualify for incentives from the Stage 1 levels.  For example, Stage 2 requires use of computer order entry for lab and radiology orders as well as the electronic prescriptions in Stage 1.

The Stage 2 Measures could put providers hoping to avoid EHRs at a significant disadvantage.  For example:

Stage 2 includes electronic transfers of patient information on the transition of care from a primary care physician to a specialist.  Specialists who fail to support electronic transitions of care could be left out as referring physicians will find it easier to click on a button in their EHR to refer a patient rather than employing a referral coordinator to make the phone call.

Stage 2 includes secure messaging with patients over the Internet.  Physicians who fail to support such exchanges could be perceived as less convenient and responsive to patient needs.  Patients can look up their physician’s report on their lab results or their recent office note on the patient portal for practices using an EHR rather than leaving a message for the physician and playing phone tag.

Sitting out the EHR revolution as a billing service could also put you at a disadvantage.  EHR decisions and transitions have a tendency to overwhelm practices and may cause collateral damage to their billing and collection efforts.  Indeed, some practices focus on their EHR selection and fail to verify the capability of the PMS features or the effort to move to a different billing product.

During this demanding transition, your billing service can help your clients maintain cash flow as well as offer EHR options that work with your billing services and, as potentially important, may be supported by your organization.  The challenge is establishing a link between your billing service and your client’s EHR needs.

As a practical matter, your billing service is already a technology provider to your clients.  You should seriously consider extending your services to the EHR arena.  Consider the following issues:

  • Staffing – Many billing services lack the expertise in EHR to support their clients.  However, there are many EHR aspects that require skills that you employ in your billing operations.  For example,

Technology – Your current expertise in communications, hardware and user support can be easily extended to the EHR arena.  EHRs are a more daunting challenge for many practices and require reliable and competent help.  Indeed, your physician clients will need computer access for every staff member that uses the patient chart as well as the resources to serve a larger set of EHR users.

Workflow Design – Billing services have designed effective processes to help the practice and billing service maintain optimal efficiency.  EHR implementation requires dramatic changes to clinical operations to take advantage of EHRs and benefit from their use.

Note that the Health Information Technology (HITECH) initiatives included training initiatives to develop 50,000 new HITECH professionals in educational institutions across the country.  Checking on the relevant program in your area or state may provide an attractive source of EHR trained staff to support your EHR services.

  • Products – Consider choosing a few products that can interface with your billing service software.  For example, Kareo has several EHR partners.  By focusing on the key requirements of an EHR and providing effective support, you may be a preferred vendor that will ease the segue to EHR and preserve cash flow for your clients.  Additionally, your clients may be able to cut the timeline and expense of EHR by using your medical billing service.

The implementation of EHRs will become a necessity for many practices who want to maintain working and referral relationships with their colleagues and patients.  Your billing service can serve an important role for your physician clients as they realize what the EHR Incentives will do to their business model and industry.  This will lead your clients to the realization that they need an EHR strategy and solution.

Ronald Sterling, CPA, MBA, discusses Why You Need to Build an EHR Capability in Your Billing Organization and HowRon Sterling (800-967-3028, www.sterling-solutions.com) publishes the popular EHR Blog Avoid-EHR-Disasters.blogspot.com, and authored the HIMSS Book of the Year Award winning guide “Keys to EMR/EHR Success.”  He is an independent EHR consultant. Hear Ron speak in an archived webinar sponsored by Kareo: What You Need to Know About Selecting the Right EHR. Ron most recently wrote for Getting Paid on 4 EHR Technology Issues that Billing Services Can Help Clients With.

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4 EHR Technology Issues that Billing Services Can Help Clients With

Ron Sterling February 6th, 2012

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EHRs require a higher level of reliability and present a more complex technical challenge to your physician practice clients.  Unfortunately, many practices fail to correctly analyze their situation and design technology strategies that will support a successful EHR effort.

1.    EHR Customization

Many practices undertake efforts to customize the EHR to meet their operational and clinical needs.  However, before a practice is in a position to determine what they want to customize, the practice needs to understand what the EHR product does and the quality of the clinical information.  For example, some practices undertake expensive efforts to customize clinical information based on their paper forms that may not be the most effective structure for an EHR-based record.

In the worst cases, customization can undermine other EHR capabilities.  For example, changes to clinical content may not properly trigger calculation of the E&M code and be properly included in the EHR exam notes.

What You Can Do – Work with the practice client to fully analyze the EHR and assess the applicability of the EHR before undertaking expensive changes.  Such an analysis should answer the question about what would happen if the practice used the EHR without the change as well as the complete scope of work needed to implement the changes to completely work with the EHR.

2.    Managing Third Party EHR Components and Services

Many EHR products include third party components to supplement the basic capabilities of the EHR.  Third party products are used to manage EHR images, provide patient portal functionality, and even clinical content to support charting in various areas of medicine.

In many cases, these products are sold as a package but may be contractually set up as if the practice was buying individual products and connecting them together.  Indeed, it can be difficult to find someone who understands all of the various pieces of the products and how they work together.

This problem also manifests itself in the implementation effort, when the practice may have to separately seek help from the EHR vendor and third party vendors.  Each vendor may understand the functionality of their product and the handoff to the other product, but they rarely understand the details of their third party partner software and services.

What You Can Do –Your third party billing organization may be able to serve as the analyst to rationalize the practical aspects of working with these various products.  For example, you may be able to analyze the interface between the EHR and third party patient portal product to identify a good approach for the practice to manage the interactions with patients through the portal.  Similarly, you may be able to articulate the technical problem that is causing problems charting patient visits where the third party clinical content may record the patient treatment plan, but fail to generate the patient order for EHR tracking.

3.    Establishing Reliable System Infrastructure

In many cases, medical practices are not getting the advice they need on options to mitigate the chance of a system failure and assure adequate hardware resources.  For example,

Practices that are based on a hospital campus may be able to capitalize on the uninterruptable power service offered by the hospital and take advantage of their redundant Internet connections.  Practices in many offices need to evaluate the risk of disruption and the investment needed to assure reliable power and communications.

Practices need to evaluate their need for redundant storage devices and even servers to avoid disruption to system access.  Due to the drop in hardware costs and virtual machine structures, many practices can afford to invest in more reliable and redundant hardware for their EHR.

What You Can Do –Evaluate the costs of redundant and fail-safe computer systems and communications to avoid disruptions due to system failure or lack of system resources.  In too many cases, practices are going with bare minimum configurations which may cause performance and/or reliability problems.

4.    Protecting Patient Information

Many practices do not have the technical expertise or even understanding of their own system to conduct a Security Risk Assessment.  Security Risk Assessment is a Meaningful Use Measure needed to qualify for the Medicare EHR incentive payment.

Security Risk Assessments evaluate the administrative, physical and technology strategies used to protect patient information.  Thereby, the actual ability of the practice to meet the security requirements will depend on the design of their technology base, placement of their equipment, and access standards and procedures.

What You Can Do –Make your client aware of the key issues related to Security Risk Assessments.  You can advise your client on the hardware selection and design decisions as well as the procedures needed to implement a system that will protect patient information as well as provide a viable path to meeting the Meaningful Use Measure. 

Your physician practice clients are facing a wide range of implementation and use challenges in their effort to take advantage of EHRs.  Unfortunately, many practices are proceeding without adequately considering the technology issues that could affect EHR use for years.  Targeting your efforts to helping clients with the technical challenges of EHRs will help them protect their investment and their records.

Ronald Sterling, CPA, MBA, discusses four EHR technology issues that billing service clients need help withRon Sterling (800-967-3028, www.sterling-solutions.com) publishes the popular EHR Blog Avoid-EHR-Disasters.blogspot.com, and authored the HIMSS Book of the Year Award winning guide “Keys to EMR/EHR Success.”  He is an independent EHR consultant. Hear Ron speak in an archived webinar sponsored by Kareo: What You Need to Know About Selecting the Right EHR. Ron most recently wrote for Getting Paid on Effect of ICD-10 Codes on EHR Timelines for Medical Billing Services.

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Effect of ICD-10 Codes on EHR Timelines for Medical Billing Services

Ron Sterling January 9th, 2012

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Medical billing services are facing challenges that could enhance or disrupt your EHR timelines.  In addition to the move from 4010 to 5010, your EHR strategy cannot ignore the effect of ICD-10 codes starting in October 2013.

Although October 2013 seems far off, in the context of EHR implementation and use, the initiation of ICD-10 codes present a serious challenge for any EHR process.  Consider the following issues:

  • As a practical matter, practices and medical billing services will need to focus on the ICD-10 coding transition in the summer of 2013.  Any distraction from EHR projects and other major changes will not be practical for most medical billing services and their clients.  Therefore, the bulk of any EHR implementation project has to be completed by the early summer of 2013 or started at the end of 2013 to free up resources to work on the ICD-10 transition.
  • From the billing service view, whatever involvement you want to undertake should be established and proven before the focus switches to ICD-10.  Establishing the capability in time for ICD-10 will facilitate the sales of EHR products and capabilities to the many practices that will be struggling with ICD-10.
  • Typically, it takes 4 to 6 months to start EHR implementation.  Depending on a wide range of issues including the size of the practice, locations, and depth of services, completion of the EHR rollout may consume 1 to 4 months more.  Even after EHR deployment, a practice could be facing a 4 to 8 month period of intensive transition for patient paper charts to the EHR.  Intensive changes or increased workloads could divert resources for the ICD-10 transition and imperil cash flow.
  • Medical billing services that already offer EHRs will also be affected.  Indeed, many EHR vendors are expected to release an ICD-10 sensitive version as we approach the deadline.  For example, many EHR products use ICD-9 codes to classify patient visits and to trigger patient treatment plans.  However, ICD-10 codes have a level of specificity that will require grouping strategies to support EHR features.
  • Many medical billing systems will be similarly affected.  For example, reports by diagnosis codes would require supplemental groupings for the same diagnosis for initial and follow-up visits (using different ICD-10 codes, but the same ICD-9 codes today.)

With the summer of 2013 as a blackout period for major EHR efforts, you need to work back to determine the best strategy and where your EHR offering should be as well as the practicality of implementing client EHRs before attention turns to ICD-10.  Consider the following:

  • Where should the medical billing service’s EHR service development be? – In the run-up to ICD-10, any medical billing services that plan to have a role in EHR deployment should have established the capability and rolled out the offering.  Thereby, the medical billing service will be ready for clients that may want to quickly deploy an EHR solution after trying to manage ICD-10 manually.
  • What EHR implementation stage should be completed by the summer of 2013? – EHRs are closely tied to ICD coding to maintain the referential integrity of the patient medical record, as well as support basic EHR functionality.  Therefore, dramatic changes to EHR use in the middle of the ICD-10 transition could generate too many changes that would be difficult to coordinate.  Indeed, dramatic changes to EHR use and ICD-10 coding could result in an unstable environment.  Therefore, all EHR projects should allow sufficient time and efforts to adjust to ICD-10s.  For example, an EHR implementation project may replace the patient charge, use the system for workflow, and even charting, but delay order entry and billing until the ICD-10 transition has been completed.
  • What should a billing service do about clients who are not implementing an EHR by the summer of 2013? – A number of authorities believe that EHRs will be essential to meeting the ICD-10 coding challenge.  However, a wide array of physician practices will not be implementing EHRs in time for ICD-10.  Any practices that are not implemented in time may require additional training and coding support from the medical billing service organizations as well as a plan to implement an EHR, where appropriate.

ICD-10 transitions represent a significant amount or work and a serious risk to medical billing services and their clients.  Recognizing the level of effort needed to transition to ICD-10 codes, medical billing services need to establish EHR strategies and implementation plans that will not interfere with the transition to ICD-10 and avoid disruptions to cash flow and billing processes.

Ronald Sterling, CPA, MBA, advises how medical billing services can deal with the effect of ICD-10 codes on EHR timelinesRon Sterling (800-967-3028, www.sterling-solutions.com) publishes the popular EHR Blog Avoid-EHR-Disasters.blogspot.com, and authored the HIMSS Book of the Year Award winning guide “Keys to EMR/EHR Success.”  He is an independent EHR consultant. Hear Ron speak in an archived webinar sponsored by Kareo: What You Need to Know About Selecting the Right EHR. Ron most recently wrote for Getting Paid on 4 Steps to Get the Most from Your EHR Effort.

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Insights from AMBA 2011: Policies and Claims Tracking Can Improve Collections

Kathy McCoy, MBA December 14th, 2011

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Policies and Claims Tracking Can Improve Medical Practice Collections

Maximizing collections is the point, the goal, the mission of medical billing as a profession. At this year’s AMBA meeting, it was also the topic of a presentation given by Cyndee Weston, AMBA’s founder and president. In that presentation, Weston essentially made a single, powerful assertion: There are things medical billing professionals can do to improve collections

So, what are they?

It comes down to information. Providing it and collecting it

Weston’s discussion focused primarily on two things billers can do to be more successful at collecting:

  • Set, communicate and follow policies to reduce labor and improve patient compliance/remittance.
  • Track denials, payments and adjustments in order to identify, analyze and fix claims issues.

Written financial policies help improve compliance and remittance

While many practices don’t have a clear, written financial policy, Weston said they should. Who is responsible to pay? What fees are charged for various filings, appointment no-show fees, charges for NSF checks? How is delinquency defined? Collections process and charges?

These and many other issues should be crafted into a clear, detailed policy that is presented to patients in writing at the beginning of the relationship. This establishes the norm up front. It makes clear to patients what is expected of them and what they can expect. Be sure to obtain the patient’s signature for their receipt of — and agreement to — your policies. Do this not just at the initial visit but again each time policies are updated. Weston advised, also, to make new or changed policies available to patients on the web, via fax or through mail.

Establish the norm for staff… and empower them

Having written policies is as helpful for aligning staff to the practice’s A/R goals as for patient compliance. Written policies tell staffers what is expected of them and of the patients. The policy removes guesswork and judgment. It also gives medical billing personnel and office staffers the ability to be firm, which is a must. A signed, agreed-to policy enables staff to remind patients that they have always been aware of the processes and responsibilities, agreed to them and have had a copy to reference.

Communicate all policies and help everyone understand

Pointing out that communication is critically important to collecting, Weston explained the need to provide to patients not just financial policies but also office policies. They need to know your hours, policy on prescription refills, reporting of test results, privacy rules and other things that may come up as issues that impede payment. This includes letting them know, as a deterrent, the practice’s policy on “firing” or “divorcing” them for delinquency, not adhering to physician advice and/or other reasons.

Weston also advised doing all you can to help patients understand their responsibilities, your policies, their coverage, their EOBs and anything else that will make them more willing and/or able to pay. Similarly, be open and direct with staff so they know their responsibilities and are best able to work toward their goals.

Lastly, Weston said that billing managers and personnel should be willing to explain the importance of and need for written policies to the physicians and other decision-makers in the practice.

Tracking helps you identify and fix problems with claims

Of the many key policies and practices that Weston recommended, one of the most important is to track claims denials, payments and adjustments. Simply put, you cannot manage what you don’t measure. And you can’t fix what you can’t find. Specifically, Weston says that billers must use their billing software to identify and analyze problems in claims that may be adversely affecting reimbursements.

Billing departments need to make sure to set up specific codes for each specific reason for denial: Insurance terminated. Out-of-network. Set up specific codes, also, for every possible type of payment, including which carrier, type of payment, etc. Then do the same for adjustments, including both voluntary and involuntary write-offs. In essence, billing departments need to design what they want to track. Having codes for every situation reveals patterns, from too many physician-waived fees to poor pay frequency from a certain carrier.

In her presentation, Weston also outlined some ways to quickly assess accounts receivable and some reasons behind what you may find. Plus, she provided ways to boost overall office and billing efficiency. Visit AMBA’s site for more information on these and the other topics covered in Weston’s presentation.

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