Business crucial for business growth. Same holds for the Medical and healthcare industry. A competitive business environment call for acquiring and retaining well-satisfied clients. To accomplish it, medical facilities need to provide quality against the value of money while meeting the demands of patients. The service level agreements as well as on-time delivery of services count as well.
In short, each and every organization should yield productive quality, needless to say that productivity without quality is meaningless. Several factors play a role in enhancing the quality when revenue cycle management is at hand.
The checks contributing to the quality of the revenue cycle management in medical billing are stated below.
Percentage of Clean Claims:
The clean claims are the ones that get cleared on the first attempt. It’s a number that indicates a good measure of how many errors a medical organization make in its billing and coding processes. An approximate aim mounts up to 95%. This much of claims have to be sorted out in the first attempt.
Accounts Receivable Days:
The A/R (Account Receivable) days indicates the number of days that take to clear out your insurance claims. The smaller the number, the better the quality of your revenue cycle. The A/R days can be between 30 days to anywhere around 120 days. Considering billing experience, when the number of days in the case of A/R days exceed 90 days, the number of paid claims drastically drop.
Cost of Collections Percentage:
If you are a kind of a company that has in-house medical billing, coming up with the exact cost of collection in a percentage format can be challenging. You need to calculate the cost amount from getting back claims. These costs include the cost of labor dealing with patient demographics, billing, coding, follow-ups, and collection of all the monetary amounts from insurance claims for a month.
You need to make sure that you include the cost of all benefits that you provide to your employees which include, health insurance, annual bonuses divided by 12, and paid vacations etc.
In addition to that you have the cost of your billing department, the next step is, that you divide this amount with the actual claim collection (The money that goes into the bank). Multiply this with 100 and you will get the cost of collection percentage. If this percentage is above 4% then you should seriously consider outsourcing your medical billing to a professional billing company like Medcare MSO to squeeze out the true benefits of your practice.
You need to outsource all or part of your medical billing operations to a company that is specialized in this kind of work. Medcare MSO will take a cut of anywhere from 5% to 10% depending upon a load of work and the concerned medical specialty.
Most hospitals, clinics, labs, and other medical facilities are leaving money on the table thinking that the claims has gone bad. Remember there are always untapped opportunity for a dedicated and experienced medical billing company like Medcare MSO to enhance the quality of revenue cycle management of your practice.
A competent billing company will not let the dollars go so easily and the potential to have an increased revenue is always there.
What is more of a headache for medical organizations is to manage an extra department for billing. A professional medical billing company can increase your claims recovery from 15% to 20% in most cases, while improving the quality of your Revenue Cycle Management.
Net Collection Ratio:
To succeed as a medical service provider, you need to set your goals at front for maximum profitability. A good way to monitor your performance is by observing your “Net Collection Ratio” (NCR).
The NCR is the comparison between your charged collected amount and payer’s allowed amount. The NCR will indicate the money that is collectible in return of a medical service.
As mentioned before, the claim recovery with the enhancement of your revenue cycle management is completely possible and Medcare MSO has been doing it since 2012. Medcare MSO houses a highly trained and certified staff with unrivaled billing and coding experience.
The services of Medcare MSO are also highly affordable and varies according to the volume and the specialty as mentioned before. You can give us a call at any time, ask us any question, we are available 24/7, around the clock to serve you. You are welcome to contact us now.