Patient Collections 101: Let's Start at the Very Beginning

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Patient Collections 101Let’s Start at the Very Beginning


Our Schedule for Today…

1 Introduction & Welcome Mary Pat

2 Patient Collections 101

3 Discover Kareo’s Role

4 Answer Questions


Your Hosts Today…

Mary Pat Whaley,FACMPE, CPC, Co-Founder & President,

Manage My Practice

Lea ChathamContent Marketing Manager, Kareo


Participate via Social

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How to participate:1. Follow @GoKareo on Twitter2. Follow @LeaChatham on Twitter3. Search for #KareoTip4. Join the conversation using #KareoTip5. Join Building Best Practices

group on LinkedIn


Mary Pat Whaley

Over 25 years practice management experience

FACMPE, CPC, Co-Founder & President, Manage My Practice

Board Certified in Medical Practice Management

Popular blog and top LinkedIn contributor

Interviewed and quoted in publications such Medical Economics, Physicians Practice, Physicians Digest, and others

[email protected]

919-370-0504

http://www.managemypractice.com/

mailto:[email protected]






4 Answer Questions


Today’s Agenda

The Basics of Accounts Receivable

Patient Collections in 2014 The Importance of Staff Training The Payer Matrix The Role of Eligibility and

Benefits Information The Financial Policy is the Best

Patient Collection Tool You Have Credit Card on File Program in

Patient Collections


Accounts Receivable = any monies that are due to the

practice from any payment source (patients, payers, etc.)

Often written as “A/R”.


Understanding Accounts Receivable

A/R is typically broken into 2 or 3 sections: Patients Collection agencies Third parties such as insurance plans



Accounts Receivable Get Old. The longer it takes to collect, the less likely you are to collect. A/R is aged in cycles of 30 days. A common benchmark for the health of a practice is the number of days to collect or number of days a charge sits on the A/R.

AGE PROBABILITY of COLLECTION

CURRENT (<30 DAYS) 97%31 – 60 DAYS 90%61 – 90 DAYS 60%91 – 120 DAYS 50%



Days In A/R Calculation Total charges for the last 12 months divided by 365 =

average daily charge. Total Accounts Receivable divided by your average daily

charge = days in A/R.

ExampleTotal 12 months charges = $1.2M

Divided by 365 = $3,288 (average daily charge)

Total A/R is $200K, divided by $3,288 = 61

Days in A/R = 61



How Much Will You Collect?

And What Will It Cost You to Collect It?

A/R AGE $ COLLECTED $ LOST< 30 $97,000 $3,00031 – 60 $90,000 $10,00061 - 90 $60,000 $40,00091 - 120 $50,000 $50,000


Patient Collections: Past

Small balances

Often written off

Money divorced from care


Patient Collections: Today

Large balances

Consumeristshave skin in the game

Payment before care


Why Your Staff Are Key

Don’t bother trying to collect from patients on the front end if your staff aren’t:

Willing to educate patients on financial issues.

Capable of communicating information to patients.

Clear on the importance of patient collections.

Supportive of the financial goals of the practice.


Turning Receptionists into Collectors

They will need training on: Customer Service Insurance Terminology Your Financial Policy Being Empowered to Solve Problems Balancing Policy with Service When to Call for Help The Payers in Play


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PAGE KAREO | CONFIDENTIAL

Why Engage Patients?Using a Payer Mix:The Number One Question at

the Front Desk?

Do You Take My Insurance?


Using a Payer Matrix

Before anything else happens (and definitely before the patient is seen), your front desk needs to know what the practice’s relationship is with the patient’s insurance company:

You are contracted with the payer/plan You are NOT contracted with the payer/plan



If you are contracted with the payer/plan, that means you have agreed to accept their “allowable” as the maximum reimbursement, including what they determine is the patient’s financial responsibility.

If you are NOT contracted with the payer/plan, you have not agreed to any contractual terms, and your terms rule.



PAYER PLAN NAME CONTRACT (Y/N) NOTESBCBS Superior Y BCBSBCBS HealthyLife N May also say

“XYZ” on the cardBCBS Supreme Y


The Role of Eligibility & Benefits

Eligibility: Is the patient enrolled in the plan? Is the patient eligible for benefits on the date of

service?Benefits:

Are the services requested covered? Is there a deductible to be applied? Is pre-authorization needed?


The Financial Policy

Your Financial Policy: Is an opportunity to start The Conversation Should be graphic instead of dense text Should be no more than one page long Is an opportunity for patient financial

engagement


Why Credit Card on File (CCOF)

CCOF is the small practice’s best friend because: It reduces your days in A/R to an

average of 35 days. It reduces your collection expense

from ~25% to well under 5%. It allows maximum flexibility for

collections at time of service vs. post-claim.


Why Credit Card on FileCHANGE BENEFIT

IMPROVE CASH FLOW Improve liquidity, stabilize finances, protect practice against 90-day grace period for exchange plans, handle high-deductible plans

ELIMINATE STATEMENTS Reduce collection expense, deposits, and staff workload in posting payments

ELECTRONIC PAYMENT PLANS “Set it and forget it!”, secure, flexible

ELIMINATE MANUAL PATIENT REFUNDS Improve patient satisfaction with fast refunds, reduce expense

ELIMINATE BOUNCED CHECKS Reduce collection expense (time and labor)

REDUCE/ELIMINATE DEPOSITS All insurance payments are EFT starting 1-1-2014, with CCOF no deposits are required

FASTER CHECK-IN AND OUT No need to ask for payment!

ELIMINATE PAPER RECEIPTS Save time and expense

ELIMINATE THIRD PARTY COLLECTION FEES No need to use collections unless card expires

ELIMINATE CASH DRAWERS & CHANGE ISSUES Reduces theft, eliminates handling money






4 Answer Questions


Discover Kareo’s Role

“…Make Your Practice a Best Practice!”



Cloud-basedMedical BillingPatient Payment ServicesInsurance Billing & RemittanceScheduling & Practice ManagementElectronic Health RecordsMedical Billing ServicesEducation, Training, & Support Included

20,000 Providers Nationwide



• Kareo PM• Eligibility

Verification• Patient Statements

(electronic & print)















(electronic & print)• Online payments





(electronic & print)• Online payments• Credit card

processing & card on file

Patient Card on File or Online Payment

3.9% + $0.30 tax per transaction

In-office payments through Kareo

2.3% + $0.30 tax per transaction

No Monthly FeesNo Hidden Fees

Simple Per Transaction Pricing


Discover Kareo’s Role• Kareo PM

• Eligibility Verification

• Patient Statements (electronic & print)

• Online payments• Credit card

processing & card on file

• Kareo Billing Services

• Integrated PM, EHR, RCM, Portal

• Best Practices• Training & Support• All inclusive pricing


Kareo Marketplace

• Kareo Partners• Online appt.

scheduling• Text reminders• Recalls• Phone visits• Reputation

Management• Specialty EHRs


Educational Resources

Kareo.com/meaningful-use

Kareo.com/ICD-10

http://www.kareo.com/meaningful-use

http://www.kareo.com/ICD-10








4 Answer Questions


Patient Collections 101: Let's Start at the Very Beginning

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