Know Your Financial Position Better

When the economy gets tough, hospitals sometimes start cutting and slashing in an attempt to protect the money that they have coming in. What is sometimes missed are regulatory issues and making sure the facility stays profitability.

By regulatory issues, we mean things such as making sure certain staff isn’t working too many hours, making sure patients aren’t being made to wait an extraordinary amount of time before having services performed, and even things like making sure all patient maintenance areas are being cleaned as much as they’re supposed to be. It’s a tough world, and hospitals have as tough a time as anyone else, sometimes more, and the powers that be are trying to do the best they can with what they have.

However, one thing they certainly need is better cash flow. For better cash flow, there might be a host of positions that need to be filled on an interim basis to help see just how things are going.

For instance, bringing in extra billing personnel to bring days in receivables as low as possible is never a bad thing. It’s been calculated that every hospital billing person is responsible for upward of $250,000 to $400,000 in new cash for a small to medium sized hospital, with “new” being defined as less than 90 days. Older receivables are much harder to define, but if you have enough billing personnel to begin with you have less worry about receivables older than 90 days.

Bringing in someone to help a facility learn how to track denials is important because denials are what drains a hospital’s cash in the first place. It’s not just having people working denials; it’s learning what they are and trying to address the issue based on that information. One can’t fix what one doesn’t know is broken.

Things like that help hospitals know exactly where they stand when it comes to cash. Bringing in interim personnel can help hospitals determine what moves they need to make for long term success.

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Tips to Improve Hospital Revenue Cycle Operations

What creative and unique ideas do you have to lower hospital A/R and accelerate cash flow ?

Here is an idea:  For your most uncooperative 3rd party payer, download accounts (aged beyond 60 days) to an excel spreadsheet.  Email the list to your provider reps attention and schedule a meeting with her to discuss claim statuses.  Great way to resolve accounts in bulk!