Archive | May, 2013

Top 10 Tips to Improve Collections (Part 9)`

22 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #9

USE A THIRD PARTY EARLIER IN THE PROCESS

Most businesses/practices have trouble keeping up with laws regarding contacting customers/patients regarding their accounts.  Even if they can stay informed enough to ensure their compliance, the additional challenges that the regulations cause means that tactics must change.  In order to collect the accounts, more frequent contacts are necessary (see tip #4).  In a difficult economy, most businesses/practices can not afford to hire the additional staff necessary to effectively and systematically collect before accounts age to oblivion.

Services are available that will accomplish the “in-house” follow up necessary to collect accounts early, while ensuring complete compliance to privacy and collection laws.  These services, like Transworld Systems Accelerator,  can actually save the business/practice the internal expenses of doing their own follow-up at avery reasonable price, and without alienating customers/patients.

By the time an account reaches 60-90 days past due, the customer/patient is sending a message.  They either do not intend to pay, or are waiting to see what the business/practice will do to demonstrate their commitment to getting the account paid.  At that point, a third party can motivate a customer/patient to pay in ways that the business/practice cannot, simply because the demand for payment is coming for someone other than your business/practice.  Avoid paying a percentage to a contingency collection agency, using small claims court or hiring an attorney by using a flat-fee collection service such as Transworld Systems Profit Recovery.  Using Transworld Systems Profit Recovery can save your business/practice both time and money, without having to pay a high percentage of any money collected.

For more information on the suite of services that Transworld Systems has available to make businesses and medical practices more profitable, while maintaining good customer/patient relationships, please contact me through the form below or follow this blog for regular updates.

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Top 10 Tips To Improve Collections (Part 8)

20 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #8

ENSURE YOU ARE COMPLIANT WITH FEDERAL, STATE AND LOCAL LAWS

Collections, both in-house and outsourced, are governed by federal, state, and sometimes local laws and regulations.  In many cases, businesses and medical practices are governed by the same laws as are collection agencies.  Ignorance of the laws and regulations that govern your activity is never an excuse, nor a defense, for breaking them.  For example: Calling to collect on an account at an odd hour or disclosing to a third party that a person owes your business/practice money are just a couple of the collection practices that can cause serious repercussions.  Become familiar with the Fair Debt Collection Practices Act, the Telephone Consumer Protection Act, HIPAA (for medical and dental practices), and any state and local regulations pertaining to your location, or partner with someone who can help you remain compliant.

For more information on staying compliant in following-up on slow-pay and delinquent accounts, contact me through the form below or follow this blog for regular updates.

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Self-Pay Is Here To Stay: And It’s Scary

18 May

medical bill

So are you one of those who thought that health exchanges would cause self-pay to go away?  You need to think again!!  Self-pay isn’t going anywhere anytime soon. and it’s growing.

It has been projected that out of pocket expenses nationally will rise more than $400 billion by 2016.  The advent of mandated medical coverage, which is coming in 2014 will markedly increase the number of “basic” health plans with the demise of “Cadillac” plans.  Higher deductibles and lower co-pay in these basic plans will leave the patient covering up to 40% of the bill.  All of this happening with a patient population that has an increasingly difficult time covering their portion of the amounts.  Couple that with the fact that percentage of Americans who are enrolled in the increasingly popular high deductible plans hit a record 28% in 2012,  It’s getting scary!

Some things you might not know:

  • 55% of patient responsibilities are never covered.
  • 81% of “true” self-pay responsibilities are never covered.
  • It costs twice as much to collect from the patient vs. the payer
  • Between 2007 and 2012, patient responsibility grew from 12% of total revenue to 30% and isn’t slowing down.
  • Self pay is the number three payer after Medicare and Medicaid
  • Each family will be responsible for up to 32% more in financial responsibility in 2014
  • An “insured” patient doesn’t guarantee full payment.
  • ICD-10 will also potentially increase patient responsibility.

These are just a few facts that indicate our future.  A strategy or partner will be necessary to respond well to these challenges that are before us.  The view of patient out of pocket will have to change.  No more can a practice just assume that they can absorb patient balances that aren’t collected.  Balances will need to be collected and early in the cycle, as accounts receivable depreciate in collectability very quickly, more quickly than ever.  Any A/R over 90 days, depreciates at .5% per day, and practices can’t absorb the losses any more.

Most practices cannot do this on their own.  What is not collected at time of service is both challenging and expensive to work adequately in-house.  The expense associated with pursuing these well is more than the practice can handle, so the choice is clear.  You can either “do the best you can with what you’ve got” or you can find a partner who can help you do it well, and for less cost.

Make sure that anyone that you partner with is 100% committed to compliance, because federal, state and local regulations are making it more and more challenging to accomplish the task.  Ensure they protect you, as well, from liability for what they do.

Again, I realize that many who read this will deny that this is the future, and rely on the belief that more patients insured will mean less challenge for the practice in pursuing patient balances.  If you are among those, I have a bridge I’d like to sell you.

If you realize the challenge, and would like to investigate what I believe to be the best available solution to this increasing problem, respond to this article and ask and I will be happy to share it with you.

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Top 10 Tips To Improve Collections (Part 7)

16 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #7

ADMIT AND CORRECT ANY MISTAKES ON YOUR PART

Sometimes customers/patients don’t pay your bill because they think your business/practice has made a billing error.  If that is the case, quickly admit it and correct the error.  Generally, customers/patients realize that mistakes happen sometimes in business.  Unfortunately, some customers/patients believe that the owner/president or doctor “doesn’t need the money.”  Denying an obvious error your part only feeds the fire of resentment your customers/patients already feel.

To receive each of these 10 tips by email, please follow this blog by entering your email address on the right side of the page.

 

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Get Your 10 Electronic Prescriptions (eRx) Done Before June 30th to Avoid a 2% Cut in Medicare Payments in 2014 | Manage My PracticeManage My Practice

15 May

Get Your 10 Electronic Prescriptions (eRx) Done Before June 30th to Avoid a 2% Cut in Medicare Payments in 2014 | Manage My Practice.

Top 10 Tips To Improve Collections (Part 6)

14 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #6

MAKE SURE YOUR STAFF IS WELL TRAINED

Even “experienced” staff members can sometimes become jaded when dealing with past-due accounts.  This usually happens when the customer/patient has made and broken promises for payment.  Make sure the staff is firm, yet courteous when dealing with them.  Your business’s/practice’s collection staff may benefit from customer service training because, in effect, they must “sell” your customer/patient on the idea that your business/practice expects to be paid.  Make sure that your staff is trained to not only bring the account current, but to also maintain good will.

Contact me if you would like information on training for your staff in customer relations and asking for money.  The consultation is free.

To receive each of these 10 tips by email, please follow this blog by entering your email address on the right side of the page.

 

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4 Lessons Small Businesses Can Learn from Warren Buffett

14 May

4 Lessons Small Businesses Can Learn from Warren Buffett.

Top 10 Tips To Improve Collections (Part 5)

13 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #5

USE YOUR AGING SHEET, NOT YOUR FEELINGS

Many businesses/practices (or some well-meaning people on their staff) have let an account age beyond the point of ever being collected because he or she “felt” the customer would pay eventually, and did not want to offend or alienate the customer/patient.  While there are certainly isolated cases of unusual situations, the truth is that if your business/practice is not being paid, someone else probably is.  So stick with your systematic plan of following-up on slow pay and delinquent accounts.  If it is done systematically and early in the process, it will soon be apparent who intends to really pay and who doesn’t.  Appropriate action can and should be taken once you know where your business/practice stands.

Contact me if you would like information on ways to get this accomplished in your own situation.  The consultation is free.

To receive each of these 10 tips by email, please follow this blog by entering your email address on the right side of the page.

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HFMA Peer Reviewed Designation

12 May

Transworld Systems Profit Recovery is proud to be an HFMA (HealthcareFinancial Management Association) Peer Reviewed service.

Profit Recovery is a customized program to fit individual practice needs; designed to deliver the power of 3rd party intervention while allowing our clients to maintain complete control.

Profit Recovery provides HFMA members with the following benefits:

  • Automated and co-sourced tool to collect on self-pay and insurance balances
  • Low average fee of $10 per account, based on volume
  • Convenient Online Client Portal for 24/7 reporting access
  • Ensured compliance with HIPAA, Red Flags Rule, Patient Friendly Billing®

Peer Reviewed

HFMA Peer Reviewed – Transworld Systems Profit Recovery has made THE SHORT LIST!

THE SHORT LIST is a list of products and services that have earned the distinguished Peer Review designation. Transworld Systems Profit Recovery has proudly held this distingushed honor since 2007. HFMA Peer Reviewed products and services have been evaluated by users like you for the things you look for as you make smart purchasing decisions.

CLICK HERE to learn more about HFMA’s Peer Review process.

For more information on the HFMA, visit their website at http://www.hfma.org

For more information regarding our Peer Reviewed service, please contact me directly using the contact form below

*HFMA staff and volunteers determined that this product has met specific criteria developed under the HFMA Peer Review Process. HFMA does not endorse or guarantee the use of this product.

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Top 10 Tips To Improve Collections (Part 4)

12 May

It’s a problem faced by virtually every business and medical practice – how to deal with customers / patients who pay their bill late, or not at all.  While customers and patients expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bill.

Accounts not paid promptly can severely impact the cash flow of a business or practice.  A clearly defined and carefully communicated, yet diplomatic payment policy, may help avoid difficult collections situations.

Tip #4

CONTACT OVERDUE ACCOUNTS MORE FREQUENTLY

No law says your business/practice can contact a customer/patient only once a month.  The old adage, “The squeaky wheel gets the grease” has a great deal of merit when it comes to collecting slow pay and delinquent accounts.  Contacting late payers every 7-14 days will enable you to diplomatically remind the customer/patient of your terms of payment.

If recent economic conditions have made it impossible, due to reduced or inadequate staffing levels, to make contacts that frequently, never fear.  What used to be a benefit that only the largest companies/practices could afford, there are now VERY inexpensive services available that will do the contacting for you, in your name.  This accomplishes the level of frequency you need, without spending more money (often even less) than it would cost you to do the contacting in-house.

For more information on services that are available to increase the frequency and effectiveness of account follow-up, please contact me personally.

To receive Tips and Tricks by email, please follow this blog in the box in the right hand column.

 

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