Management By Reports

Management by Reports:Accountability at its Best

June 11, 2008Miriam Lieber

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Agenda• Reduce/eliminate duplicative functions• Automation for employee tracking • Create efficiencies…save time and

money • Manage from reports• Inventory management

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Ask Yourself…• How often does staff use manual intervention to

solve a problem?– Manual log of patients by a product/supply?– Cut and paste data from your billing software into an

excel spreadsheet? • How often do you find employees searching every

desk and file for a patient chart? • Do you have to physically check inventory before

deciding if you can accept an order? • Do you often find that faxed orders are missing or

never make it to your desk?

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When you find a manual function, determine how it can become

an automated task.

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Detecting Manual Work• Evaluate each department within your company• Observe conduct – watch for hand written

functions– Patient notes – 1-31 tickler files for written orders and CMNs

• Numerous checklists • Limited understanding of software and its

capabilities

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Your Expenses

• Employees– Wages and benefits

• Cost of goods– Inventory

• Select Administrative costs– Storage/warehouse – real estate– Delivery/shipping– Order processing – intake to collections– Computer costs

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Using Automation to Maximize Efficiency

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Employee Tracking

• Assign tasks and track via software • Track quantitative results

– E.g. Orders taken by CSR rep• Easy to calculate incentives if progress is

monitored in automated fashion– Dollars collected from A/R project

• How does this improve productivity?

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Small Change – Big Impact• Seek additional training, re-training

– Use internet training and testing resources– Reduce staff turn-over -- improve bottom line

• Most HME companies use 50% of software’s capabilities• Learn nuances and shortcuts

• On-line eligibility and verification of insurance benefits• Data collection for strategic decisions

– Disease state and equipment– Length of use– Average payment turn-around time

• Imaging today is affordable and makes dramatic impact on operation

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Managing by Report

• Intake – Daily revenue figures– Insurance verifications– Sales/referral source tracking

• Open order report– Undelivered sales versus actual deliveries

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Managing by Report

• Cash collections (COD)/retail• Documentation• Billing/revenue versus receivables

– Correspondence tracking– Billing to collection ratio

• Length of time from billing to collections

• Manage write-offs– Measure against percentage of A/R

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Managing by Documentation Reports

• Report of held billing by:– Dollars– Doctor

• Clinic, specialty– HCPCS/Item– Written order versus CMN– Age – How many days do you await

documentation?

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Authorization Management

• Track authorizations and re-authorizations separate from CMNs and written orders

• Lead time on re-authorizations and recertifications

• Can you track status checks?– Last action taken, next step, tickle date

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Confirmation Tracking

• Number of unconfirmed orders• Number of confirmed orders• Look for benchmark and trends• Measure for accuracy• Monitor productivity

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Accounts Receivable Management

– A/R Reports• Sort A/R by payer/age

– Segregate old from new A/R• Compare cash receipts to collections• A/R as a percentage over 90 or120 days• Write-offs/bad debt percentages• Days Sales Outstanding (DSO)

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Referral Source Tracking

– Referral source report• Track generic and specific referrals

– Within clinic or hospital• Track by payer

– Competitive bidding segregation • Track by equipment• Historical, aggregate aging (year -to-date, this month last year)• Revenue per patient• Teaches where to focus marketing efforts

– Do you conduct routine needs assessments?

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Other Reports• Consider using claim filing and remittance software to

monitor and manage denials– Optimally your software will incorporate this function into

software– Non integrated solutions =RemitData

• Enables you to track Medicare, Medicaid and other third party payments

– Assists in managing A/R more effectively– Provides on-demand EOBs

• Private pay collection management– Outsource or maintain internal control – Measure effectiveness of current efforts

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Ultimate Inventory Management

• Manage inventory control via bar coding – Real time solution– Eliminate theft and loss/shrinkage– Improve operational efficiencies

• Easy automated purchasing/ordering, receiving, stocking

– Use scanner to dispense product• Instant updates

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Tracking Inventory • Reporting for monitoring

– Quantity on hand by warehouse– Most readily used products

• Profit margins– Preferred vendors

• Formulary management & control– Inventory turns– Cost of goods by product & category– Asset value – depreciation– Physical count – Items on repair – quantity

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Competitive Bidding• Requires quarterly inventory reporting

– Manufacture – Make – Model

• Quantity of product type sold/rented– By payer, percentage

• Delivery method• Compare inside CBA versus outside

– Comp. bid products versus others

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Control Your Own Destiny• Data control and management prepares you for

your future– Buying another company– Selling your company – Expanding into other locations and product lines– Growing retail segment

• Knowing your financial status prepares you for important strategic decisions

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Summary• Evaluate internal operations • Look for ways to increase efficiencies through automation• Maximize use of software • Use management reports to track business • Inventory management is essential for enhanced

productivity and competitive bidding reporting• Use software for inventory tracking, accountability,

operational control and planning your future• Outcome: realize increased profitability

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Speaker Information• Miriam Lieber• President, Lieber Consulting• 15030 Ventura Blvd.• Sherman Oaks, CA 91403• 818 789 0670• Fax 818 990 9466• Email: [email protected]• Website: Lieberconsulting.com