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$158K is the average performance improvement of what top primary care private practice physicians earn compared to those who are average.*
*Source: MGMA, Physician Compensation and Production Survey: 2012 Report Based on 2011 Data
Abstract
Top-performing physicians care about two things: patient care and financial performance. Because a practices financial health directly affects the ability to provide excellent care, top physicians carefully evaluate billing procedures in order to collect all available. This guide illustrates why medical billing processes, staff, and technologies are critical factors in maximizing revenue capture. On the surface, payment collection seems pretty straightforward: you provide service and get paid, right? Not necessarily. Often payments are interrupted by mitigating roadblocks that are expensive and time-consuming to navigate. Outdated billing software and procedures impact a practices capacity to collect; inaccurate coding and charge capturing often lead to insurance denials. Practices also struggle to maintain an efficient workflow as client/server practice management and health record software often do not interface. When considering the frequency of rejected claims, staffing costs, and delinquent receivables, billing procedures may be costing your practice thousands of dollars each year. There is a solution to this financial drain ADP, a trusted company with nearly $11 billion in revenue and more than 60 years of experience. As one of the worlds largest providers of cloud technologies, ADP provides an estimated 570,000 clients with solutions for human resources, payroll, benefits administration, tax processing, and medical practice services. AdvancedMD by ADP offers physicians a complete solution for medical practice optimization. With AdvancedMD, providers can shift attention to what really matterstaking care of their patients.
Office technology is the cornerstone of an efficient, profitable medical practice. According to a Modern Physician/Price Waterhouse Coopers survey, medical practice technology usage increases 40% every year. To stay competitive, medical professionals must invest in advanced technologies including tools that support a paperless office (i.e. electronic health records, online patient portals, electronic prescribing, remote access, central billing office, up-to-date coding and claims processing, offsite data storage). Physicians who consider clinical
U.S. healthcare is so inefficient that 24 cents out of every dollar is wasted on administrative and billing expenses.
1.
quality and increased profitability see good reason to invest in these new technologies. Examining industry averages will help to determine if your billing procedures are impacting your profitability and if it is time to upgrade your system. The assumptions below represent industry averages for solo and group practices taken from 2012 MGMA Cost Survey Report2.
Assumptions
Total medical revenue per FT provider (monthly) Total medical revenue per FT provider (annual) Total medical revenue after operating costs per FT provider Total A/R per FT provider Percent of total A/R 120+ days Days gross fee-for-service (FFS) charges in A/R Hardware/equipment/system software (per provider) Total operating costs as a % of total medical revenue
Using these assumptions, the following sections demonstrate how AdvancedMD increases a medical practices bottom line by up to 22%. AdvancedMD solves the problems that interrupt full, timely payments while eliminating common inefficiencies. AdvancedMD will take your practice from average to the top of the industry.
and electronic health records, expensive servers and support staff are no longer needed. A medical practice can easily save on hardware and support by outsourcing non-core business functions allowing you to focus on what you do best practice medicine.
Additionally, eRx software provides a way to submit prescriptions electronically and reduces refill processing time from 15 minutes to 3 minutes.4 Assuming 20 refills each day, nearly 4 hours of staff time is saved each day. You will not only save on operating costs by implementing EHRs and eRx, but AdvancedMD is a great tool in reaching Meaningful Use requirements for Medicare and Medicaid reimbursements. Federal incentives for using EHR technology can result in $39,000-63,750 in additional funding for your practice. Use of AdvancedMD will assist you in meeting Meaningful Use requirements while keeping your records accurate and safe
Average new patients per year Cost for creating a new paper chart Annually
Average number of charts pulled each year Cost for pulling a paper chart Annually Additional revenue realized with AdvancedMD EHR
3. Dunne, Anne M. Measuring & Improving Your Medical Practices Financial Performance, live presentation given on September 13, 2012 4. Leveraging HIT, Improving Quality & Safety, Journal of Healthcare Information Management
Total office revenue Added revenue per physician per year Additional revenue per year using AdvancedMD coding tools
The AdvancedMD Claim Center includes unlimited claims submission and a proprietary Claim Inspector, which checks 3.5 million coding combinations to guarantee a 95% firstpass acceptance rate. Most AdvancedMD customers report even greater acceptance rates of 98% or higher. With AdvancedMD, you can expect to add $3,260 monthly ($47,400 annually) to your revenue by simply improving the rate of first-pass claim acceptance. Electronic claims take just seconds to prepare and are often processed by carriers within hours, not days.
Consider the average amount of each claim that your office never resubmits for payment. You may be surprised how much revenue is lost
5. The Physician Billing Process: 12 Potholes to Avoid in the Road to Getting Paid, 2nd Edition, published by the Medical Group Management Association (MGMA) 6. Mendicino R, Gupta A. Achieving Transparency in the Claims Payment Process. Health Management Technology, November 7. Academy Coding Edge
57.46 x 69 $ 3,950
$
57.46 x 12 $ 689.52
$
Savings using cloud practice management and/or EHR Total yearly hardware and maintenance cost Total yearly hardware and maintenance cost
3,260.48
8. AHIP Center for Policy and Research; Rise in Electronic Claim Submission, February 2013.
Are you getting paid for the work youve completed? Are You Getting Paid for the Work Youve Completed?
National Average vs. AdvancedMD
Career
% 30 Claim
Rejection
95 First-pass
%
Claim Acceptance Guaranteed!
50 Rejected
Aside from a reduction in payer processing time, processing claims electronically decreases the amount of time necessary to submit the claim.
Source: MGMA
Average monthly revenue Operating days per month Average per-day billed revenue Additional days of cash flow Additional cash flow using AdvancedMD
Outsourcing billing to one of the most trusted companies in the world, ADP, may be the answer to your billing headaches. Outsourcing medical billing will reduce the time and expense of managing your collections in-house and improve your practices overall profitability.
The AdvancedMD integrated Practice Management (PM) and Electronic Health Record (EHR) software suite offers the flexibility and security that client/server technologies cant. Are you ready to improve your profitability? Quite simply, the financial health of your practice is a reflection of getting paid in full for the services you provide. Consider the variables: How long do you wait to get paid? How much are you spending to collect payments? How often are you unknowingly underpaid for your services? How often are you not paid at all? AdvancedMD has the features to optimize your medical offices business operations and collect the money you have earned:
1. Claim Inspector eliminates the costly claims resubmission process with a guaranteed 95% first-pass rate which will add an estimated $3,260 each month. 2. Electronic claim submission decreases DSO to less than 21 days and adds an estimated one-time $95,560 to an offices cash flow. 3. Coding tools add $3,699 in yearly revenue by updating codes annually and checks 3.5 million coding combinations. 4. The cloud platform saves $7,625 in annual hardware, IT, and software upgrade costs.
Total operating costs take up to 65% of an average practices revenue. By using the AdvancedMD full-featured, cloud practice management, and EHR you can reduce your operating costs to as low as 38%, dramatically improving your profitability. There are also additional benefits that create a better work environment and patient experience including improved efficiency, billing, coding, charge slips, backups, anytime access, disaster recovery, and 99.99% uptime. Now is the time to experience the benefits of a software suite that does it all. Rise above the average and contact AdvancedMD today.
Author
Colette Weston
Colette Weston currently serves as Manager, Product Management for AdvancedMD. She joined the company in 2003 and has served many roles within the organization. Her 25-year healthcare career started by processing claims, just prior to joining AdvancedMD, managing a billing service with more than 200 physician clients. Ms. Weston also managed a family practice clinic, provided implementation and training for medical billing software, as well as editing for a medical necessity review service. She is passionate about healthcare billing, customer service and ADP AdvancedMD.
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