For many practices, the focus this year has been on ICD-10 and preparing for an effective transition. As a result, a growing problem has been slipping under the radar—patient collections.
Today, patient due amounts make up 30 percent or more of practice accounts receivable. And the longer it takes the practice to collect from a patient, the less they get paid. According to Mary Pat Whaley, after 60 days the percentage collected drops to below 60 percent.
ICD-10 will likely remain a key focus for practices through the end of 2015 at least. But don’t let that stop you from taking some time to look at the state of your patient collections. This infographic shows how the landscape is changing and what practices can do to ensure they get paid.
Let’s face it, return on investment (ROI) for an electronic health record (EHR) has been has been a rainbow unicorn kitty for practices over the years. Some studies have indicated that many practices don’t see positive returns for years if ever while others show very positive results of increased revenue per full time provider and ROI in as short as two and half years.
Why the big variation? It’s hard to say for sure but some of the factors may be practice size, type of EHR, and looking for the ROI in the right places. According to the Physicians Practice 2014 Technology Survey, sponsored by Kareo, over 40 percent of practices have seen a return on their investment from their EHR.
Some of the places they are seeing financial rewards may be old news but others could be a surprise.
CMS Incentives
It will come as no great shock that practices that got on board with PQRS and meaningful use at the beginning have reaped some financial benefits. The full incentives for MU early adopters was $44,000, and they avoid any penalties. For the past several years one of the top three reasons physicians cited for changing or adopting and EHR was qualifying for incentives.
The incentives are gone but the penalties are still in play. If you haven’t started yet, you will have reductions in your Medicare payments starting this year, but that doesn’t mean you shouldn’t get on board. If you serve a large portion of Medicare patients it may make sense to attest for MU to avoid further penalties.
Reducing Expenses
The ability to cut costs has always been a bugle call for EHR, and nothing has changed. You can cut costs and streamline with an EHR. The key is to ensure it is implemented correctly with the right workflow, that everyone is onboard and using it the way they are supposed to, and you let go of paper as much as you can.
When you do that, you can save anywhere from $5 to $8 per new paper chart along with ongoing savings on paper, toner, and printer and fax equipment. They are seeing so many benefits from the EHR, they’d never go back now. Eric Pokky, practice manager at Total Healthcare for Women, says about 20 percent of their patients are new and those charts run $5 at their practice. With 15 new patients a week, that is a savings of around $300 a month.
When physicians maximize the EHRs documentation tools, you can also cut transcription significantly or all together. Transcription has been estimated at as much as 11 percent of total collections so that is a substantial savings. For a primary care provider who brings in $300,000 a year, that is a savings of more than $30,000 alone.
I remember when the Health Insurance Portability and Accountability Act (HIPAA) passed. I was working for a leading practice management software vendor. Everyone was overwhelmed by what was involved. We developed a huge amount of education and information for our customers. Some people wondered if the healthcare industry could make such a major change.
Today, HIPAA is ubiquitous. Many practices take it for granted. They are not concerned about a breach because they believe they have done everything they need to do. In a recent study by MedData Group of physicians top practice management priorities for 2015, HIPAA didn’t even make the list.
“We instigated HIPPA when it came out, and it is in place and second nature to us,” said Joann Lister, a provider at a family medicine practice in Texas. “We have all worked at the hospital so we had plenty of training on the rules. Our physical space and computers are confidential. Our practice management and EHR software, Kareo, always goes back to login when we are done in a room so the next patient does not see anything. We have limited personnel so it is easier to know that everyone honors the HIPAA rules.”
The question is: Have practices gotten too complacent with HIPAA? With the latest changes to HIPAA in 2014, have they followed through on making changes and updates? The data and experience of industry experts and consultants suggests that there may be a problem with HIPAA compliance.
“The last analysis we did for a practice had 41 pages of regulations that required implementation,” recalled practice management consultant Rochelle Glassman, CEO of United Physician Services. “Most practices do not know what the complete requirements are. They believe that if they have the patients sign the privacy form that is all they need to do. This year there were updates that included the new HITECH Act and the HIPAA Omnibus rule. I can guarantee that many practices have not updated their HIPAA program to include the changes because they do not even know they exist.”
