Frustrated by billing and collection issues in your practice? See how you can cut down on cash flow problems.
Q: Billing and collection are the bane of my existence. When things are going smoothly in this area, all is well. When one of these processes goes awry, the practice starts to have cash-flow problems, not to mention stress. How do we avoid billing crises and stay on an even keel each month?
The key to minimizing the ill effects of billing and collection breakdowns are early recognition, systematic processes that are easily identified and repaired, and regular reporting that sounds an alarm when potential problems arise. Diagnosing what went wrong in the process will lead to a sustainable solution.
Set a standard and establish a weekly performance measurement to see how quickly the practice performs its billing function or sends claims to an outside billing company. Share this information with the practice management team, and include performance reviews of both staff and management.
With these kinds of measurements in place, you can target specific aspects of your billing and collection process and flag potential issues before they turn into problems that affect your monthly cash flow and overall bottom line.
Answers to readers' questions were provided by Thomas J. Ferkovic, RPh, MS, managing director of SS&G Healthcare Services LLC, Akron, Ohio. Send your practice management questions to firstname.lastname@example.org Also engage at http://www.twitter.com/MedEconomics and http://www.facebook.com/MedicalEconomics