News – Sybrid MD https://sybridmd.com Mon, 04 Feb 2019 15:04:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.1 https://sybridmd.com/wp-content/uploads/2024/03/fav.png News – Sybrid MD https://sybridmd.com 32 32 Six Fundamental Revenue Cycle Metrics Management https://sybridmd.com/blogs/sybrid-news/six-fundamental-revenue-cycle-management-metrics/ Mon, 04 Feb 2019 15:04:50 +0000 http://sybridmd.com/six-fundamental-revenue-cycle-management-metrics/ Revenue cycle metrics management is important because it lets you keep track of claims processing, payment and revenue generation. If you do not want to lose revenue, it is essential to track revenue cycle metrics management metrics, as every dollar lost can cause more adverse impact than you expect.

1. Gross Collection Percentage:

This is the difference between the total income earned during a specific period, the net discounts, and the aggregate charges. Since every service is different, the figures of gross collection percentage of one service cannot be compared to another or even with another physician within the same practice as yours. Gross collection payment lets you monitor if your relative collections are improving over time.  Formula: [Total Payments – Refunds] / Total Charges

2. Net Collection Percentage:

The net collection percentage tells us the reimbursement collected as compared to the allowed amount based on a practice’s contractual obligations. This revenue metric is very useful as it tells how effectively a practice collects a legitimate reimbursement. You can calculate net collection percentage by deducting total receipts by refunds and dividing the answer by total charges deducted from Contractual Adjustments. Formula: [Total Receipts – Refunds] / [Total Charges – Contractual Adjustments]

3. Days in Receivables (Days in Accounts Receivable (A/R)):

This is one of the very important revenue cycle metrics that calculates the number of days money owned is unpaid. This is not difficult to calculate. You can do it by dividing the total accounts receivable by average daily charges. (Average daily charges= charges of 3 months/90 Days)

4. Percentage of A/R over 90 Days Old:

Claims should be collected as soon as possible because as they become old, it gets more difficult to collect them. Claims that have not been collected for over 90 days can cause problems with account management, which is the reason why it is better to go for 20 percent less of total A/R in the 90-day or older category. This can be calculated by dividing total receivables (less than 90 days) by the total A/R.

5. Work Relative Value Units (RVUs):

This tells us the relative amount of physician resources, work and expertise needed to provide services to patients.

6. Credit Balances:

Credit balances are often not calculated and reviewed by a number of practices. However, managers should review credit balances every now and then to avoid any complications or misunderstandings later.

]]>
What is a Line of Credit and How Can it Help Your Hospital https://sybridmd.com/blogs/sybrid-news/what-is-a-line-of-credit-and-how-can-it-help-your-hospital/ Wed, 09 Jan 2019 14:09:10 +0000 http://sybridmd.com/what-is-a-line-of-credit-and-how-can-it-help-your-hospital/ Before we talk about how a line of credit can help you, it would be beneficial to first establish what exactly it is. Put in basic terms, it’s a loan. However that is too over-simplistic to be helpful. A line of credit is, yes, a loan. But the customer or entity receiving the loan will declare the maximum amount they can withdraw. Once borrowed, the money is accessible whenever the customer or entity wants to use it. Additionally, you cannot withdraw an amount that’s even a little higher than the pre-specified amount, and are expected to follow other conditions such as regular payments of the minimum amount.

A line of credit is most useful to a hospital whenever its cash-flow is compromised. This could be when patients are paying down their deductibles, or even situations where the payment ends up delayed for any other reasons. Not to mention circumstances wherein claims need to be resubmitted. Such situations can impact your finances in a fairly negative manner, hence a line of credit is recommended to help till payments are once again underway.

Among the benefits of a line of credit, is that it functions in a manner similar to credit cards. This means the money can be used at any point the borrower deems suitable, and there’s no need to reapply to access the money. You are, of course, expected to make payments (including interest on the amount that has been withdrawn) from the moment your cash-flow recovers from the initial setback. For businesses, there are also documented instances where the equity of their firm can be linked to their line of credit.

Making use of a line of credit also provides convenience when you need to purchase new medical equipment. While the process of acquiring an equipment loan isn’t all that complex and receiving these loans is fairly simple, it can be fairly time consuming. Once you have filled out the relevant form, you need to wait till you’re granted approval. A line of credit typically works a lot faster than this, allowing you to make all the necessary purchases in a shorter amount of time.

So for convenience, here are the general benefits of utilising a line of credit:

  • Flexible borrowing
  • A convenient way to cover expenses while cash-flow is compromised
  • Quick access to the necessary funds
  • Interest is only paid on the amount you have actually withdrawn

However for the sake of transparency, there are also some disadvantages to keep in mind:

  • The convenience of using a line of credit can perhaps lead to an over-reliance on borrowing
  • Access to money in a quick and easy manner can also lead to irresponsible spending

When sensible and responsible parties are in charge, a line of credit can do a lot for your hospital in the midst of an unsatisfactory cash-flow. By making sure that you have access to the right kind of money at the right time you can guarantee that your hospital will be able easily survive any rough patches. Just be mindful of too much borrowing and spending.

]]>
Financial Viability Is the Major Concern of Healthcare CEOs https://sybridmd.com/blogs/sybrid-news/financial-viability-is-the-major-concern-of-healthcare-ceos/ Fri, 15 Dec 2017 07:52:51 +0000 http://sybridmd.com/financial-viability-is-the-major-concern-of-healthcare-ceos/ ‘Financial viability is the ability to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels.’ To survive and thrive in a highly competitive business environment, every organization wants to ensure a steady flow of cash to meet the expenses and to reinvest for infrastructure development. In its broader sense financial viability goes beyond than only meeting the costs instead it is creating a viable revenue cycle that can sustain a steady growth of an organization.’ Financial viability is turning out to be the primary concern for healthcare organizations CEOs and CFOs. Healthcare reforms and the demand for acquisition of new technologies have put the extra burden on the finances of healthcare organizations. Although the government has incentivized the purchase of healthcare technologies in many ways, in reality, it does not end with a simple purchasing of software. For instance, growing out from a paper-based healthcare provider to a software-based office requires not only the purchasing of practice management tools but also supporting hardware, skilled staff, security and backup cost, compliance requirements and up gradation of the systems over the time. The concern over the finical viability of a healthcare organization is justified in many ways.

healthcare

source:digitalauthority.me

A healthcare organization functions by capturing, managing and collection of revenues from the services provided to patients. The whole process starting from enrollment to payment involves multiple, but integrated steps and any problem with that revenue cycle can be critical for the organization. Over the past few years, implementations of the healthcare reforms and newest requirements have immensely increased the operating cost. Either it is CMS’s new Value-Based Payment Modifier program or other state-run programs which are apparently meant to improve the system are putting extra load over the revenues of hospitals. Considering this a continuous phenomenon that does not seems to end soon, hospital CEOs have started to ponder over risk strategies. If a hospital fails to meet specific requirements or any unusual happening such as data breaches and subsequent penalties are a few of the risk factors that can trigger revenue collapse. Hospitals are routinely taking measures to improve the performance of the systems. To improve the performance, hospitals regularly examine finances, performance, and collections to accommodate any unusual circumstances. Even a mere compliance for value-based payment model requires healthcare organizations to overhaul the processes from every angle.

To boost clinical outcomes and experiences of patients as well as to lower organizational expenses healthcare organizations keep on taking the initiatives that can improve the overall performance. However, in the current healthcare system, hospitals CEOs are required to manage it in various ways. To maintain a viable financial status, they have to keep in check the timeliness of reimbursements, controlling the increasing cost of supplies, managing the operational cost, keeping unpaid bills low and shifting the infrastructure to value-based care delivery. Moreover, hospitals require consistent funding for process improvement and commercial expenditures to be competitive in the market. Multiple issues are bantering hospital CEOs in the current age of rapid transition, but maintenance of the financial status has become the chief concern. Healthcare organizations sustain in all type of circumstances even we have observed their sustainability during and after natural disasters. However, only one thing can disrupt their operations, and that is financial losses. Availability of the adequate financial resources is the backbone of any healthcare organization and should be sufficient enough in all circumstances.

]]>