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Aged Accounts Receivable

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Agenda

Introduction

Objectives

About Us

Overview

Benefits

Process

Analysis

Reporting

Investment

Next Steps

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Introduction

John Boland

John Boland is vice president at MedSynergies

(MSI) and responsible for advising healthcare

billing organizations on selecting services to

enhance their revenue cycle.

Prior to joining MSI in 2005, John directed national

and regional client services with IDX Systems

Corporation, where he provided revenue cycle

outsourcing solutions to medical group practices.

He received a bachelor of arts in economics from the University of

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Objectives

Describe MedSynergies’ service for processing old AR.

Show examples.

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MedSynergies – About Us

Founded in September 1996 by physicians

13 years of investment in processes and technology to

optimize Centricity Group Management

Business service provider to medical billing organizations

Billing optimization consulting

Payment processing services

Denial management services

Business analytics

Technology services

Including ASP hosting of

GE Centricity® Group Management

(formerly IDX® Groupcast®)

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MedSynergies – About Us

Headquarters: Irving, Texas

Regional offices: Little Rock, Chicago, Orlando and Phoenix

240 Employees

Serving over 3,600 providers and 55 specialties in 37 states

and supporting more than 4,500 concurrent end users

Providers like:

Physician practices

Hospitalists

Corporate

Home healthcare/Infusion therapy

Surgery centers

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Service Overview

Work 100% of your aged insurance receivables!

Sorting through old accounts receivable (AR) is time-consuming and labor

intensive for most physician groups.

You specify which receivable accounts need to be worked – 90 days or

older.

Comprehensive analysis will classify all aged accounts by status including:

Denial reasons

Balance type

No response

You can choose to purchase the comprehensive aged AR analysis or both

the analysis and the processing of the accounts.

The service is offered as either a one-time project or on an ongoing basis.

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Benefits

Some of the benefits to working your old AR:

Process unresolved accounts in an accelerated time frame

Increase revenues with an average positive return on investment of over 200%

Eliminate unnecessary write-offs

Focus your management time on caring for patients

Understand and address root causes for aged AR trends

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Benefits

"Our A/R collections have increased and our business

office costs have decreased significantly!"

Wesley Jones

Chief Financial Officer

Central Utah Clinic

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The Process – High Level

Initiation

Analysis

Research

Follow-up

Ongoing

Follow-up

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Analysis – A/R Inventory “Waterfall”

The source of the waterfall is

MedSynergies’ consulting

business:

Practice assessments

System configuration

assessments

Process redesign

Financial assessments

The A/R waterfall is a financial

and operational assessment tool.

Used to align human resources

with the workload.

Provides guidance on where to

invest in automation.

Manufacturing view of every CPT

with touches and stopping points.

Total A/R at a given point in time.

< 60 days from charge posting

date and > 60 days from charge

posting date.

While specific to A/R, it can be

used as a process map for your

organization.

As a result, we’ve divided our own

organization into various

operational units to better align

our staff with the work.

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Analysis – The Waterfall

Open Credit Balance Total I 42,896 4,751 47,647 W 1,953 91 2,044 P 25,615 429 26,044 C 228 50 278 Total 70,692 5,321 76,013 Open Credit Balance Total 44,849 4,842 49,691 59.00% 6.37% 65.37% 33.70% 0.56% 34.26% 0-30 Days 0.30% 0.07% 0.37% 93.00% 7.00% 100.00% 0 > 60 Days from D.O.C.P. <=60 days from D.O.C.P. I 20,693 22,203 31-60 Days W 718 1,235 Total 21,411 23,438 0

Printed On Hold Not Printed Printed On Hold Not Printed

I 15,008 4,522 163 18,133 3,978 92 W 427 9 283 513 37 685 Total 15,435 4,531 446 18,646 4,015 777 % of bucket 72.09% 21.16% 2.08% 79.55% 17.13% 3.32% % of Total 21.83% 6.41% 0.63% 26.38% 5.68% 1.10% 0-30 Days

Response No Response Response No Response

I 10,684 4,324 5,593 12,540 W 195 232 39 474 0 Total 10,879 4,556 5,632 13,014 31-60 Days % of bucket 70.48% 29.52% 30.20% 69.80% % of Total 15.39% 6.44% 7.97% 18.41% 0 C R A P D C R A P D I 0 3,931 609 7,144 0 2,017 1,666 1,910 W 95 3 97 20 1 18 Total 0 0 4,026 612 7,241 0 0 2,037 1,667 1,928 % of bucket 0.00% 0.00% 37.01% 5.63% 66.56% 0.00% 0.00% 36.17% 29.60% 34.23% % of Total 0.00% 0.00% 5.70% 0.87% 10.24% 0.00% 0.00% 2.88% 2.36% 2.73%

Insurance A/R world Insurance % of total Self Pay % of total Pending Exhaust % of total

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Example: Multi-Specialty Practice

Denials 52% Adjustment with Payment 35% Straight Payments 13% Straight Payments Adjustment with Payment Denials

Composition of A/R (Units)

Composition of

the Workable % (Units)

No Response <=60 17% Credit Balance 7% Claims Issues 13% Workable 23% Self Pay 34% No Response > 60 6% Collections 0% Self Pay Workable No Response <=60 Claims Issues Credit Balance No Response > 60

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Straight Payments 11% Adjustment with Payment 18% Denials 71% Straight Payments Adjustment with Payment Denials

Example: Multi-Specialty Practice

No Response <=60 27% Collections 0% No Response > 60 6% Self Pay 24% Workable 23% Claims Issues 15% Credit Balance 5% Self Pay Workable No Response <=60 Claims Issues Credit Balance No Response > 60

Composition of A/R (Dollars)

Composition of

Workable A/R (Dollars)

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Example: Analysis AR Categories

Initial Analysis

Denial transaction message codes

Current balance type

Age

Root Cause Analysis

Payer

Provider

Revenue center

Department

BRDHOS

Place of service

Insurance class

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Analysis – Sample Recommendations

Sample Clinic Old A/R Summary Recommendations

Charges Greater Than 1.5 Years Project

PAYER OPTIONS RECOMMENDATIONS LOGIC HMO Primary-(540+ days from

date of service)

(Top six local carriers in which possible recovery of funds could occur) 1. GEMMA 2. HPUB 3. CDMM 4. ALTIMA PLAN 5. PRO HEALTH 6. BLUE CROSS BLUE

SHIELD

1. Send detailed report to payer for last chance of adjudication. The detailed report will include claim date and claim run number. 2. Provide physicians with a

breakdown report of accounts > 365 days from date of service for write-off approval.

1. Move forward with option 1 2. Work unidentified credit balances

prior to presenting A/R report to physicians for write-off approval. Move any possible to open A/R if match found.

 Primary Insurance Type = HMO  Charge 540 days+ since DOS  Current Insurance = Primary Insurance  Insurance Balance Type = Insurance  Owed Amt > 0

MEDICAID- (540+ days from

date of service) 1. Write-off 1. Check for unidentified credit balances on Medicaid accounts. Move any possible to open A/R if match found.

2. Write-off

 Primary Insurance Type = Medicaid  Charge 540 days+ since DOS  Current Insurance = Primary Insurance  Insurance Balance Type = Insurance  Owed Amt > 0

MEDICARE (540+ days from

date of service) 1. Write-off 1. Check for unidentified credit balances on Medicare accounts. Move any possible to open A/R if match found

2. Write-off

 Primary Insurance Type = Medicare  Charge 540 days+ since DOS  Current Insurance = Primary Insurance  Insurance Balance Type = Insurance  Owed Amt > 0

BLUE CROSS BLUE SHIELD (540+ days from date of service)

1. Send detailed report to payer for last chance of adjudication. The detailed report should include claim date and claim run number. 2. Provide physicians with a

breakdown report of accounts > 365 days from date of service for write-off approval

1. Move forward with option 1 2. Work unidentified credit balances

prior to presenting A/R report to physicians for write-off approval. Move any possible to open A/R if match found.

 Primary Insurance Type = BCBS  Charge 540 days+ since DOS  Current Insurance = Primary Insurance  Insurance Balance Type = Insurance  Owed Amt > 0

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Once the Analysis is Completed…

Research

Line item interaction with payer

Detailed steps to realize payment

Comprehensive, regular interval reporting on progress and success

Follow-Up

MedSynergies can update and utilize Groupcast for next steps

One-time or continuous project

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Research – Reporting Examples

The service includes weekly and monthly status reports with

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Research – Reporting Examples

Date Accounts Units Revenue Accounts Units Revenue Accounts Units Revenue Accounts Units Payments Adjustments Owed Amount

Total Aged AR 15,185 40,612 $6,099,672.10 7/7/2008 1,203 1,889 $281,031.82 38,723 $5,818,640.28 13 20 $1,133.45 $3,799.29 $228.88 7/14/2008 1,274 2,456 $367,519.72 537 841 $153,345.86 35,426 $5,297,774.70 104 173 $17,854.76 $16,085.14 $2,075.49 7/21/2008 1,092 1,998 $225,890.07 29 47 $24,880.61 33,381 $5,047,004.02 54 89 $10,909.40 $20,866.96 $4,243.71 7/28/2008 1,366 2,590 $301,458.72 1,640 2,458 $397,077.34 28,333 $4,348,467.96 268 446 $59,428.68 $54,294.96 $4,920.36 8/4/2008 1,095 2,490 $237,208.40 0 0 $0.00 25,843 $4,111,259.56 553 808 $99,183.43 $101,383.78 $16,158.18 8/11/2008 1,304 3,440 $362,757.23 17 18 $4,046.62 22,385 $3,744,455.71 253 414 $58,955.62 $54,809.17 $3,829.92 8/18/2008 1,391 2,404 $389,687.60 1,324 2,368 $123,717.26 17,613 $3,231,050.85 299 500 $28,403.72 $46,319.13 $7,775.76 8/25/2008 0 0 $0.00 9/1/2008 0 0 $0.00 9/8/2008 0 0 $0.00 9/15/2008 0 0 $0.00 9/22/2008 0 0 $0.00 9/29/2008 0 0 $0.00 10/6/2008 0 0 $0.00 Totals 8,726 17,267 $2,165,553.57 3,547 5,732 $703,067.68 1,543 2,450 $275,869.05 $297,558.43 $39,232.29

Transfers to next payers $123,717.26

Re-filed to 2ND/3rd Insurance; 1,993 units for $58,619.20 Transferred to patient; 263 units for $56,085

Transferred to next payer: 112 units for $9,013.00

Old AR ROI Calculation

Project Yield for the week of August 18, 2008 299 accounts, 500 units, $28,403.72 Paid Amount $28,403.72

Contractual Adjustments $46,319.13 Per Account Fee $ 6.00 $73,634.40

Owed Amount $7,775.76 Analysis Fee $10,000.00

Total Investment $83,634.40 Balance of $7,775.76

360 units with $0 balance Cash Collected TD $275,869.05 106 units with a balance of $9,599.17

71 with a P balance of $7,650.24 Return 330%

35 with an I balance of $1,948.93

34 units with a P credit balance of ($1,823.41)

Remaining Accounts

AR Project Yield to Date Aged AR

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Research – Reporting Examples

8/11/2008 Actions/Updates

Write Offs for this week: CO55 SVC DEEMED EXPER/INVESTIGATIONAL These charge were first tagged as out of scope of the project

All were researched by CBO and the uncollectable open AR is reflected below 17 accounts, 18 units, for $4,046.62

All Out Of Scope charge messages codes have been reviewed/researched This portion of the project has been completed

All transfers, write offs, and adjustments have been completed from this portion of the AR project Per the direction of CBO, we have excluded the AR for the Neurology and Diagnostic Imaging for DOS prior to January 1, 2008.

The impact of this omission is reflected in the following breakout  3,608 accounts

 $634,183.82 AR

 6,072 units

 The base of the new project total can be reflected in cells K4, L4, and M4

Project yield for the week of August11, 2008 253 accounts, 414 units; $58,955.62 Paid amount $58,955.62 Contractual adjustments $54,809.17 Owed amount $3,829.92 Balance of $3,829.92 352 units at $0 balance

32 units for $3,201.48 sitting at Self-Pay

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The Process – High Level

Initiation

Analysis

Research

Follow-up

Ongoing

Follow-up

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Investment

Analysis

$10,000 one-time investment

Research

$6.00 per account

Follow-up

$2.00 per account

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Next Steps

1. Meet with your representative to review the process and agreement

2. Sign agreement

3. Data extract

4. Start analysis

5. Show results

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References

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