If your medical practice experiences vast swings in collections each month when your average patient load is consistent, you are likely suffering from the “Burning Fire” syndrome.
The “Burning Fire” syndrome typically occurs when a medical practice is slightly understaffed. When slightly understaffed, the staff responsible for billing and collections can almost keep up. They do their best to stay on top of processing new claims and following up on open A/R.
Overtime, they start to become farther behind; and the open A/R balances become more and more aged. At some point, the staff will stop processing new claims and begin to focus exclusively on closing the aged A/R balances because cash is king. When this occurs, the medical practice receives and influx of collections; but during this time, new claims are not processed. This creates a revenue hole.
Once the aging balance is cleaned up, the staff race back to processing new claims. However, since the new claims were not processed when the staff was focused on collections, the available revenue for future collections is not as great, resulting in a sudden decline.
As the process of racing from collections to processing claims continues, the swings in collections become bigger.
When faced with vast swings in collections, we recommend enlisting the assistance of revenue cycle management experts. They have the resources and expertise to help your practice put out the fire. Sometimes, all a practice needs is help catching up from a temporary loss of personnel or outsourcing a time consuming function like Payor Enrollment or credentialling.
Without additional assistance, it is difficult for practices to overcome the “Burning Fire” syndrome.
If your practice is currently experiencing A/R management challenges having a negative impact on your bottom line, or if you would like to learn more about MRG’s outsourced revenue cycle management services, please speak with your CPA advisor or contact MRG’s Karrie Plaskett at 888-818-0563 ext 317 or email@example.com or visit MRG’s website at www.mrgllc.net.