In this episode, we explore how medical practices can prepare their revenue cycle for success in 2025. Inefficient revenue cycles can cost practices millions in lost revenue—but with the right strategies, you can turn things around. We cover key metrics for revenue health, eliminating bottlenecks, the power of automation, and transparency and patient empowerment. Join us to uncover actionable insights and practical steps for creating a thriving revenue cycle that benefits your practice and your patients. Listen now to take the first step toward a financially healthy 2025!
Transcript
Narrator: 00:00
Welcome to the Billing Blueprint Podcast, your go to resource for innovative medical billing solutions. Each episode we explore the latest industry trends and share proven strategies to help your practice streamline operations and get paid faster. Now here are your hosts, Brad and Sarah.
Sarah: 00:21
Welcome to our deep dive today where we're going to be talking about how to make sure your revenue cycle is ready to go for 2025.
Brad: 00:29
Right.
Sarah: 00:30
We have some really cool sources here. And one of the things that I was reading about that I thought was so interesting is the fact that inefficient revenue cycles can cost practices millions.
Brad: 00:43
Millions?
Sarah: 00:43
Yeah, literally millions in lost revenue.
Brad: 00:47
That's a lot.
Sarah: 00:47
That's a lot of money. So this is something that we really need to focus on and make sure we're doing it right. So what would you say is the first step that practices need to take to make sure their revenue cycle is intact? Tip top shape.
Brad: 00:59
You know, it's so interesting to me how many practices will just jump straight into solutions without even understanding their current situation. It's like setting sail without a compass or a map. Right. You know, you really need to know where you are and where you're headed before you can start to optimize.
Sarah: 01:16
Yeah. So like a financial health checkup for your practice. Where do you even start with that?
Brad: 01:22
We got to look at some key metrics, things like days in AR and your collection rates.
Sarah: 01:27
Okay, now break those down for me. What exactly are those?
Brad: 01:29
Well, for example, days in AR tells you how long it's taking to actually get paid.
Sarah: 01:34
Yeah.
Brad: 01:34
For the services that you're providing.
Sarah: 01:36
Got it.
Brad: 01:36
And you can actually calculate this by dividing the total amount of outstanding accounts receivable by the average daily revenue. So the lower this number the better because that means you're getting paid faster and you have healthier cash flow. Okay, now collection rates, on the other hand, that shows what percentage of your build amount you're actually collecting.
Sarah: 01:58
So that's the money that's actually coming in.
Brad: 02:00
Yes, exactly. The higher, obviously, the better.
Sarah: 02:03
Makes sense. So those metrics paint a pretty good picture of how efficiently the practice is getting paid. But what if those numbers aren't looking so great? How do you actually start improving those?
Brad: 02:15
Well, that's where you need to identify what we call bottlenecks.
Sarah: 02:18
Bottlenecks. I like that. Okay, so what are some of the most common bottlenecks?
Brad: 02:22
Well, common culprits are gonna slow reimbursements from insurance companies.
Sarah: 02:28
I hate when that happens.
Brad: 02:30
Yeah. Limited patient payment options or even sometimes billing errors.
Sarah: 02:33
Oh, yeah, those are never fun.
Brad: 02:35
So once you know where the holdups are.
Sarah: 02:36
Yeah.
Brad: 02:37
Then you can set what we call smart goals.
Sarah: 02:39
Yeah, smart goals.
Brad: 02:40
Yeah. So that's specific, measurable, achievable, relevant and time bound.
Sarah: 02:46
Okay, I like that acronym. I'm going to remember that.
Brad: 02:49
Our source material actually recommends aiming to reduce your days in AR by 10% within six months. Okay, that's just an example.
Sarah: 02:56
So a good concrete goal to shoot for.
Brad: 02:58
Exactly. Having that specific target makes it so much easier to track your progress.
Sarah: 03:03
Okay, I'm with you on that. So you've mentioned multiple billing channels a couple of times. What exactly does that mean? And how does that play a role in streamlining this whole process?
Brad: 03:11
That's a great question. So while it might seem counterintuitive, offering multiple billing channels can actually streamline things in the long run.
Sarah: 03:20
Really?
Brad: 03:20
Well, just think about it. When patients actually have the option to receive and pay their bills in a way that's most convenient for them, they're more likely to do it promptly.
Sarah: 03:31
Yeah, that makes sense.
Brad: 03:32
Right, so this actually reduces the need for those annoying follow up calls and manual reminders, which can free up your staff's time.
Sarah: 03:41
Okay, so it's not just about making things easier for the patient.
Brad: 03:44
Right.
Sarah: 03:44
It's also about saving your staff time and energy.
Brad: 03:46
Exactly. And you know, there are even platforms out there like Bill Flash that can help automate a lot of this multi-channel communication.
Sarah: 03:54
Oh really?
Brad: 03:55
Yeah, they handle sending out the bills through the various channels. You can even set up automatic payment reminders.
Sarah: 04:01
Hmm, that's interesting. So multichannel billing isn't just about catering to patient preferences. It's also about streamlining the process for the practice itself.
Brad: 04:11
Exactly.
Sarah: 04:12
Are there any other strategies that practices can implement to make billing and payments even smoother?
Brad: 04:17
Well, one strategy that's gaining a lot of traction right now is what we call pre visit billing. So this involves informing patients of their estimated out of pocket costs before their appointment even happens. Okay, so by providing this financial clarity upfront, practices can minimize any surprises, reduce billing disputes, and even encourage prepayment, which can really shorten that revenue cycle.
Sarah: 04:40
I see how that would be a win-win. The patient feels more in control and the practice can reduce those days in ar.
Brad: 04:45
Exactly.
Sarah: 04:46
Have you seen any, like real world examples of how pre-visit billing has made a difference?
Brad: 04:52
Absolutely. Our source material cites several case studies of practices that have seen a significant reduction in days in AR after implementing pre-visit billing.
Sarah: 05:01
Interesting. What kind of numbers are we talking?
Brad: 05:03
Well, in some cases, practices were able to cut their days in AR by as much as 20%.
Sarah: 05:08
Wow, 20%. That's pretty impressive just from being upfront about the cost.
Brad: 05:12
Exactly. It all comes down to transparency.
Sarah: 05:14
Yeah. It seems like this pre visit billing strategy really aligns with empowering patients to be more active participants in their healthcare journey. So we've talked about understanding your current revenue cycle health and then streamlining those core billing and payment processes. What's next? What's the next key area that practices should focus on? We've covered understanding your current situation and streamlining those core billing and payment processes. But there's a whole other layer that I'm really curious to explore.
Brad: 05:44
Okay.
Sarah: 05:45
The source material keeps talking about this idea of automation and the huge impact it can have on the revenue cycle.
Brad: 05:51
Yes.
Sarah: 05:52
So tell me more about that. How does automation actually work in practice?
Brad: 05:55
Automation is really revolutionizing the way we approach revenue cycle management. And it's not just about saving time. It's also about increasing accuracy, reducing errors, and ultimately freeing up your staff to focus on those more strategic tasks.
Sarah: 06:09
So where do you see automation making the biggest impact in the revenue cycle?
Brad: 06:13
Well, one area that's really ripe for automation is insurance verification. I mean, manually verifying a patient's insurance can take an average of 14 minutes per transaction.
Sarah: 06:24
14 minutes per transaction?
Brad: 06:25
Yeah.
Sarah: 06:26
That's a lot of time.
Brad: 06:27
It is. And that time really adds up, especially for busy practices. Oh, absolutely. I mean, imagine automating tasks like claim submission, payment posting, even denial management.
Sarah: 06:39
So it's not just about that initial verification. You can automate so many different steps in the process.
Brad: 06:44
Exactly. And there are integrated platforms out there. The good news is that a lot of these platforms are designed to be user friendly and they integrate seamlessly with existing practice management systems.
Sarah: 06:55
Okay, so it's not as disruptive as it might sound.
Brad: 06:58
Right. And they often offer step by step implementation support and training to ensure a smooth transition.
Sarah: 07:05
And the return on investment must be pretty significant.
Brad: 07:08
Oh, absolutely.
Sarah: 07:09
But there's one thing that I'm still wondering about. You know, we keep hearing about data breaches and the importance of protecting sensitive patient information.
Brad: 07:17
Right.
Sarah: 07:18
So how does automation address those concerns?
Brad: 07:22
That's a crucial point.
Sarah: 07:23
Yeah.
Brad: 07:23
I mean, while automation can really streamline a lot of these processes, we can't forget about security and compliance.
Sarah: 07:30
So there needs to be a balance.
Brad: 07:31
Exactly. That's where HIPII compliant software comes in.
Sarah: 07:34
HIPPA. Now remind me what HIPPA stands for again.
Brad: 07:36
HIPPA is the Health Insurance Portability and Accountability Act.
Sarah: 07:40
Right, of course.
Brad: 07:41
And this sets national standards for protecting sensitive patient data. Okay, so Any software that's handling this kind of information needs to comply with.
Sarah: 07:50
These very strict regulations to ensure patient privacy and security. So it's like having multiple layers of protection built into the system.
Brad: 07:58
You got it.
Sarah: 07:59
But even with all these safeguards in place, it seems like staying compliant with healthcare regulations is an ongoing challenge.
Brad: 08:07
It is. It's not a one time task. It's a continuous process.
Sarah: 08:10
So how can practices make sure they're keeping up with all those ever changing rules and requirements?
Brad: 08:16
Well, practices really need to stay informed about the latest changes, conduct regular internal audits and even consider consulting with experts to ensure they're meeting all the necessary standards.
Sarah: 08:27
So it's really about taking a proactive approach.
Brad: 08:29
Exactly.
Sarah: 08:30
Are there any particular areas within the revenue cycle that practices should be paying extra attention to when it comes to compliance? It seems like we've uncovered a crucial link between automation and compliance. Automation streamlines processes and improves efficiency, but it's essential to have those safeguards in place to make sure everything is being done ethically and responsibly.
Brad: 08:52
You hit the nail on the head. It's all about find that balance between leveraging technology to its fullest while still adhering to those highest ethical and legal standards.
Sarah: 09:03
This has been incredibly insightful. We've covered understanding your current revenue cycle, streamlining billing and payments, embracing automation and that crucial role of compliance. What other crucial elements do we need to address to really ensure revenue cycle success in 2025? But now I want to shift our focus to something that might seem a bit unexpected. Okay. This idea of a connection between revenue cycle optimization and the quality of patient care.
Brad: 09:33
Interesting.
Sarah: 09:34
It might seem like those two things are totally unrelated, but our source material suggests that there's actually a really strong link between them.
Brad: 09:41
I see where you're going with this.
Sarah: 09:42
So how exactly does a well optimized revenue cycle contribute to a better cation experience?
Brad: 09:48
Well, I think what's fascinating here is that we often think of the revenue cycle as this behind the scenes operation separate from the clinical side of healthcare. But in reality, it's deeply intertwined with the patient's overall experience.
Sarah: 10:01
I hadn't thought about it that way before.
Brad: 10:03
Think about it. When a practice is struggling with an inefficient revenue cycle, it creates this ripple effect that impacts everyone.
Sarah: 10:11
How so?
Brad: 10:12
Of the staff are stressed, resources are stretched thin and patients might even face billing confusion or delays.
Sarah: 10:19
Yeah, it's like when the practice is bogged down by all those administrative burdens and financial strain.
Brad: 10:25
Exactly.
Sarah: 10:26
It's hard to provide the best possible.
Brad: 10:28
Care it really is. But when the revenue cycle is streamlined and efficient, it frees up time, energy, resources that can then be redirected towards patient care.
Sarah: 10:39
I like that. So it's not just about the bottom line, Right? It's about creating a better environment for everyone.
Brad: 10:44
Exactly. Providers can spend more time with their patients, staff can focus on delivering that exceptional service, and the practice can even invest in new technologies or services that enhance the patient experience.
Sarah: 10:56
So a well oiled revenue cycle really allows the practice to function at its best, which ultimately benefits the patients. Are there any specific examples of how this translates into a better patient experience?
Brad: 11:08
Sure. Let's take patient communication, for example.
Sarah: 11:11
Okay.
Brad: 11:11
When a practice has a clear and transparent billing process, it really fosters trust and reduces anxiety for patients.
Sarah: 11:19
Makes sense.
Brad: 11:19
They know what to expect, they receive clear communication about their financial responsibility, and they have options for making payments in a way that's convenient for them.
Sarah: 11:27
So it takes the guesswork out of it.
Brad: 11:29
Exactly. And this can significantly reduce stress and improve patient satisfaction.
Sarah: 11:34
It's about empowering the patient.
Brad: 11:36
Yes. When patients feel informed and empowered, they're much more likely to be engaged in their healthcare journey.
Sarah: 11:43
And a well managed revenue cycle can also improve access to care.
Brad: 11:47
That's right.
Sarah: 11:47
I mean, when a practice is financially healthy, it's in a better position to expand its services, hire additional staff, and even offer financial assistance programs to patients who might be struggling.
Brad: 11:58
Absolutely. A thriving practice can make a real difference in the community by expanding access to quality healthcare.
Sarah: 12:04
It's about creating that ripple effect that benefits everyone.
Brad: 12:07
Exactly.
Sarah: 12:09
So as we wrap up this deep dive, what's the one key message you want our listeners to take away with them?
Brad: 12:15
Well, I think the key takeaway here is that revenue cycle optimization isn't just about numbers and efficiency. It's about creating a better healthcare experience for everyone involved. I love that when we invest in streamlining our revenue cycle, we're ultimately investing in the well being of our patients and the success of our practice.
Sarah: 12:36
That's a really powerful message. It's a reminder that even those behind the scenes processes play a vital role in delivering high quality care.
Brad: 12:45
Couldn't have said it better myself.
Sarah: 12:46
And to our listeners, thank you for joining us on this deep dive into revenue cycle optimization. We hope you found it insightful and inspiring. Remember, the journey to a thriving practice starts with a healthy revenue cycle. Until next time, keep learning, keep growing, and keep striving to make a positive impact in the world of healthcare.
Narrator: 18:01
Thanks for tuning into the Billing Blueprint podcast. For more insights or to dive deeper dive deeper into today's topics. Head over to billflash.com. Don't forget to subscribe and we'll catch you next week with more strategies to keep your practice running smoothly and getting paid faster.
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