Struggling to keep its doors open, a privately owned primary care practice was advised by its accountant to reach out to MRG to review its revenue cycle operations which were being managed by another billing company. The billing company had placed two employees in the practice to handle charge entry, payment posting and accounts receivable (A/R) follow up. It was quickly determined that the accounts receivable management process was not being managed at all. Charges were not being captured, some captured encounters were not billed, A/R was not being followed up on, and patient balances were not being collected. Due to the critical nature of these issues, the group engaged MRG to begin providing these services.
The impact was immediate. MRG’s initial monthly collection goal, as provided by the client, was approximately $150,000. In the first full month working with the practice, MRG helped the practice collect over $250,000, more than $100,000 over the same month, prior year—this was without any increase in provider production. Further, MRG was able to increase the clinic’s average monthly collections to over $250,000 per month. Most importantly, this was done without adding additional overhead costs to the practice.
What caused this drastic change in collections? MRG began focusing its attention on the immediate needs of the clinic—getting the backlog of charges posted and filed as well as getting all payments posted. Once this was completed, MRG was able to begin following up on delinquent claims as well as addressing and correcting denied claims. By leveraging its full internal resources, MRG was able to accomplish this daunting task in a matter of weeks. MRG also implemented the use of several key reports available in the group’s practice management system, Greenway, which allowed the clinic to identify kept appointments with no charges posted to ensure all charges were being captured.
Effortless changes initiated by MRG that positively impacted revenue include posting and filing charges daily, reviewing and filing secondary claims, filing electronic claims whenever possible, and creating tasks in the system to better manage unpaid claims. MRG also identified other services the group was already providing, yet not billing for, like chronic care management and hospice certifications. MRG began following up on outstanding patient balances and encouraged the clinic to utilize an outside collection agency for those truly delinquent unpaid balances. MRG provided training to the front desk staff at the clinic to help them identify and collect past due balances. MRG helped the group implement the use of an online credit card processing system to simplify patient payments.
One of the most important things that helped turn this practice around financially was the open communication between the clinic and MRG. Fixing these issues was a team effort. MRG could not be successful without the cooperation and trust of the providers and staff. After a few short months, this clinic turned the corner and became profitable; allowing the physician owners to once again enjoy the value of owning their own business which included their ability to take a vacation without worrying that the practice would be forced to shut down.
If your practice is experiencing an A/R management challenge, or you would like to learn more about outsourced revenue cycle management, contact Karrie Plaskett at 888-818-0563 ext 317.