how to increase your profits using patient payments on file, recurring and online bill pay
TRANSCRIPT
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Copyright 2007-2015
Improving Your Pa/ent Receivables
Presented By: Ray McGrogan CEO/President CardChoice Interna/onal
CardChoice Interna/onal Ø Registered ISO/MSP of BMO Harris Bank, Chicago, IL Trusted Advisor to: Ø American Medical Billing AssociaAon Ø PracAce Management InsAtute Ø NYSSCPA
“Employers only handle the money – it is the customer who pays the wages” -‐ Henry Ford
Copyright 2007-2015
Focus on Improving Your Pa/ent Revenue Today's Agenda
v Credit Card on File (CCOF) – Yes you can! v New policies and procedures set by Visa® and MasterCard® v Benefits of providing pa/ent es/mates at front desk v Discuss payment trends affec/ng provider-‐pa/ent rela/onship v Changing your front desk roll can posi/vely impact revenue v Determine your average billable pa/ent receivable
“Concentrate all your thoughts upon the work at hand. The sun’s rays do not burn un>l brought to a focus.” -‐ Alexander Graham Bell
Copyright 2007-2015
Polling Ques/on #1
Copyright 2007-2015
Adop/ng Credit Card On File (CCOF) Today is Cri/cal
Source: 2009 McKinsey survey of retail health care consumers
12%
21%
31%
0%
5%
10%
15%
20%
25%
30%
35%
2007 2008 2010
Rapid Growth of Patient Responsibility
v Provider collec/on rates run at 50% to 70% for small-‐dollar liabili/es1 v They require 3.3 statements resul/ng in an average Daily Sales Outstanding of 105 days2 v It costs from $5 -‐ $20 to collect from pa/ents who do pay 1 v Visa® has iden/fied healthcare as a market needing significant payment processing improvement3 1 Source: 2009 McKinsey survey of retail health care consumers 2 MGMA 3 Visa – AuthorizeFirst Transac>on Guidelines
“A year from now you may wish you had started today.” -‐ Karen Lamb
Copyright 2007-2015
Polling Ques/on #2
Copyright 2007-2015
AuthorizeFirst for Healthcare – How Does It Work?
1. CCOF is presented to pa/ent as a payment op/on for out-‐of-‐pocket expense
2. Setup Pre-‐Authoriza/on Payment Op/on v Provide paAent with maximum esAmated amount owed
v PaAent provides credit card
v A copy of the signed agreement is given to the paAent
3. Claim is Adjudicated v Match the claim remiZance (835/ERA) to the corresponding Pre-‐AuthorizaAon form
v Provider submits a card authorizaAon for up to the maximum agreed amount
v Payment is processed and provider receives funds within 24-‐48 hours
“ProcrasAnaAon is the thief of Ame, collar him.” -‐ Charles Dickens
Copyright 2007-2015
Who is Eligible to Process Visa AuthorizeFirst TransacAons?
Hotels do it
Car rentals do it Consumers do it Copyright 2007-2015
Provide A Good Faith Es/mate At Point Of Care
52%
16%
29%
52% are willing to pay by Credit or Debit Card
16% are willing pay by
check
29% would rather wait for a bill
0% 10% 20% 30% 40% 50% 60%
Source: 2009 McKinsey survey of retail health care consumers
Start concentra/ng on the 2/3 of pa/ents that want to pay
v PaAents that are willing and able to pay v PaAents that are willing but unable to pay v PaAents that are unwilling to pay
Copyright 2007-2015
Example of CCOF Form
PCI Compliance Is Mandatory
Do Not Store CCOF Form In Pa/ent Records
ABC Medical Services
X
X X 275.00
Steven Tyler
Steven Tyler
123 Sunset Avenue Any City HI 76543 4111 1111 1111 1111 03/16
Steven Tyler 1-20-15
Copyright 2007-2015
Polling Ques/on #3
Copyright 2007-2015
Benefits of CCOF For Provider Secures Payments v Provides addiAonal payment opAons v Allows paAents to make payment arrangements while they are sAll at your office Reduces Costs and Accounts Receivable v Streamlines the post-‐visit billing process v Improves cash flow Improves Payment and Processing Efficiencies v Lowers bad debt v Provides Amely payment for services aher adjudicaAon v Reduces manual resources needed to process, track, and research delinquent fees v Enables your staff to control and manage cash v Promotes ease of reconciliaAon by authorizing and processing payments only aher a claim is fully
adjudicated v PotenAal to increase average transacAon size by 20% -‐ 30%
Copyright 2007-2015
Benefits of CCOF For Pa/ent Increased Convenience v AuthorizaAon and transacAon occurs only aher a claim has been adjudicated v Removes the inconvenience of paying an esAmated amount at the Ame of service v Eliminates the need to adjust esAmated payments aher a claim has been adjudicated v Reduces delinquent or collecAon agency v Saves Ame by eliminaAng the need to mail in v Eliminates worry about missed billing due dates or payments v For providers offering a payment plan, AuthorizeFirst allows cardholders to make billing
arrangements that fit their budget Security v Offers paAent protecAon for charges that the paAent did not approve Rewards v PaAents may take advantage of program benefits and earn rewards when they pay with their Visa
card
Copyright 2007-2015
How To Provide A Pa/ent Es/mate
v Basic: Educated esAmate or fixed amount
v Moderate: Generate a top 10 procedure list and keep it at the front desk
v Advanced: Generate an 80%-‐90% top receivable amount from your previous statements
ü Remember: You are not required to provide an exact esAmate
“I measure in my palm and use my eyes to es>mate amounts; a tablespoon is a full palm of dried spices.” -‐ Rachael Ray
Copyright 2007-2015
Polling Ques/on #4
Copyright 2007-2015
“Insanity: doing the same thing over and over again and expec>ng different results”. -‐ Albert Einstein
Online Bill Payments Account for Over Half of All Bill Payments
Copyright 2007-2015
Start Promo/ng Your Online Payment Portal
Place message on your statements
Promote in office with signs
Copyright 2007-2015
What are you doing today to reduce the amount of statements you are sending?
Determine Your Cost of Sending Statements How Many Statements Do You Send Per Month?
900 What is Your Cost to Generate Statements?
On Average -‐ $10.00 What is Your Average Receivable?
$150.00
In this example is costs the prac/ce $9000/revenue cycle to bill $135,000.00, hoping to collect 50 to 70 percent. Then the process starts again next month
Copyright 2007-2015
Reward The Front Desk Staff
v Prepare scripts for staff to learn v Roll play with them to become more familiar with scripts v Reward staff for gemng credit cards on file
ü A gih card to a favorite restaurant as an example v Set goals to benchmark their success
ü Try to get 10% of all paAents then adjust up
Do not let your pa/ents leave with out commimng to pay their por/on of the bill. In my opinion If you do, you are allowing them to medically shoplin!
Copyright 2007-2015
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