Healthcare Provider’s Increasing Labor Costs and the Benefits of Targeted Outsourcing
According to Big Four auditing firm PriceWaterhouseCoopers (PwC) and government estimates, labor costs today account for the largest increase in spending by healthcare providers. PwC determined that paperwork for a typical medical patient adds a full 30-60 minutes to every hour of actual patient care. Given this figure, it comes as no surprise that total labor costs are projected to reach 38% of total healthcare spending. To put this into sharper perspective, compare this percentage to 3% for Pharmaceuticals, 5% for Technology and 1% for Construction.
Despite soaring costs, the Healthcare Financial Management Association (HFMA) reports that healthcare industry experts still recommend a cost-to-collect percentage guideline of between 2-3%. However, many healthcare institutions fail to take into account other contributing cost factors such as human resources, technology and telecommunications, all of which can drive their cost-to-collect well above the 5% mark.
“When you see an organization’s collection numbers, it’s important to know what they put into that,” says Aaron Crane, CFO of Salem Hospital, Salem, OR. “One organization might be collecting a lot but spending a lot to get that, while another might collect less but be getting a better return for what they spend.”
Outsourcing particular business functions is an effective way for a hospital to contain the rising labor costs of getting claims paid. “Outsourcing (has) proven that it does work,” says Scott Johnston, HFMA technical director. “Many hospitals don’t feel confident in the billing field. Why not outsource when someone else can do it better?”
The outsourcing solution does not necessarily mean a hospital must outsource its entire medical billing operation. Particular financial classes within the revenue cycle, such as aged third party receivables, No-Fault / Workers’ Compensation and others, are particularly appropriate candidates for outsourcing.
Care should be taken in choosing an outsource medical billing services provider. The provider should have a reputation for timely, ethical and professional services, a high collections ratio, innovative techniques, secure electronic communications systems, highly-trained staff, hands-on management, and the flexibility to custom-tailor programs and services to meet the institution’s unique business requirements.
With a two-decade track record of delivering superior medical billing outsource services to the healthcare industry, Medical Account Solutions (MAS) qualifies as that caliber of provider.
About Medical Account Solutions
Since 1986, Medical Account Solutions (MAS) has dedicated itself to developing and delivering Healthcare Accounts Receivable Programs that increase and streamline healthcare institutions’ cash collections without spending their resources.
Customized Revenue Management
By applying its Customized Revenue Management Services – including Flexible Proprietary Software, Certified Billing Professionals and Seamless Systems Integration – MAS becomes the hospital’s “other business office”. The end result – faster, more efficient, timely and thorough collections – saves dollars and time without jeopardizing the institution’s financial integrity, business office processes or public relations. To optimize cash flow, MAS customizes its Accounts Receivable Programs – including Day-One Billing, Aged Receivable Follow-Up,
Accounts Receivable Outsourcing and Ad Hoc Programs – to fit each client institution’s exact needs, however unique they may be.
Flexible Proprietary Software
MAS’ proprietary applications cover all services, including paper and electronic claim production, automated remittance processing, month-end reporting, inbound and outbound interface processing, and other functions. The MAS system utilizes add-in functionality for claim quality assurance, insurance verification and authorization and insurance searches. A special module performs follow-up activities based on account age and other factors set up by MAS with the client.
Certified Billing Professionals and Ongoing Training
Ongoing MAS staff training is provided through several professional organizations, including AHEM, HFMA and Ingenix, Inc., as well as online training websites such as MedLearn.com. Each staff member is required to attend, either in person or online, several seminars each year covering all new HIPAA and billing regulations for all payors.
Seamless Systems Integration
MAS specializes in integrating its flexible proprietary software with the leading vendors’ healthcare patient accounting software and can download virtually any file type through its File Transfer Protocol (FTP) server. Remote communications are established as secure, bi-directional VPNs with encryption, allowing communications between the MAS network and the client’s systems. The open, flexible and scalable architecture built into all MAS proprietary software affords the flexibility to seamlessly and efficiently accommodate the client’s existing billing and operating systems.
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I’m very impressed with your solution to improving cash flow. Your approach to this problem is refreshing and new. I am sure we will hear great things from this company in the future.
As a practicing Chiropractor, I understand the challenges facing today’s health care providers concerning billing, collections and accounts receivable. Your company’s track record sets a new standard in providing “peace of mind” when it comes to this misunderstood and often unmanaged responsibility of running a successful practice. If you are looking to outsource your medical billing, you would be crazy not to partner with Medical Account Solutions. You will be glad you did!