I recently had a client call and ask about leaving her current practice and setting up a group practice with another physician in the area. My client asked for some financial ideas that would help make sure the practice got up and running as quickly as possible. Here are 6 tips for getting it right the first time:
1. Timely Billing - In order to monitor A/R balances, file claims as quickly as possible, ideally within one day of an office visit. Prior to billing, check eligibility, benefits, and deductible balances.
2. Create a Database of Form Letters - Insurance companies are trained to reject claims for any possible reason. Physicians are known not to follow up on denied claims. The result – patients are being seen free. Make it easy to follow up on denied claims by having a database of set form letters that can be easily customized.
3. Review EOBs – Not only do insurance companies reject claims, they also have been known not to pay the correct rates. Review your EOBs several times a week and compare them to your contracted rate with that insurance company. You’ll be surprised by what you find.
4. Set Clear Policies and STICK TO THEM – Your staff need to know what they should do if your patient doesn’t pay their co-pay. Are you going to see them or are you going to turn them away to the local ATM machine. Patients understand that you need to be paid for your work, but nothing irritates them more than inconsistent practices. If you didn’t require them to pay their co-pay last time, why should they expect you to collect it in the future?
5. Track Performance – I’ll often ask a new client how their practice is going. The common response is, “good, things are good”. My question back to them is, “how do you know”. Most practices don’t have a dashboard or key indicator report that tracks results for the practice. There are dozens of key indicators that you should be tracking.
6. Check in With Staff – Physicians commonly want to spend most of their time seeing patients and dealing with clinical issues. As a result, your employees feel neglected and it can begin to show up quickly in their work ethic. For the first three to five months, you should be having at least a one-hour meeting with the team every week. Have a running list of everything your staff wants to see improved.
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