Grow Your Medical Practice: 3 ways to be profitable in tough times

How do you run a profitable, thriving medical practice when the economy is down, healthcare is changing rapidly towards unknown waters, and operational costs increase?  Surprisingly, the answer might be simpler than you think. There are some simple things you and your staff can accomplish that will improve your overall experience.

There are 3 ways that you can grow your practice to ensure that you are more profitable:

• One way to make it easier on yourself is by having policies and procedures in place that you and your office staff adhere to for patient safety.  Having set rules for dealing with all types of patients is essential. We are talking about procedures for reviewing medical records, recording histories, and cleanliness.   Some of it might seem simple, but all know we get in a rush, physicians get backed up and before you know it, something isn’t following procedure and mistakes are made.  Make sure you have good rules in place for those rushed days.  It saves you down the line. We promise.

 

• Invest in your practice. We aren’t saying you need to go out and buy that brand new x-ray machine, but you can make simple changes. It could be adding a new service by having a part-time doctor join your practice, or maybe some new lab equipment. It might even just be sprucing up the waiting room.  You would be surprised how these investments, while seeming to have upfront costs, increase your revenue down the line. New lab equipment and services increase your potential for excellence, and people who are more comfortable waiting while ill… well, we would rather see those patients, wouldn’t we? And they probably wouldn’t mind waiting as much.  You could even offer something like support groups for your patients through your office, from diabetics to weight loss groups to mental health groups.  These people involved will offer great referrals without your practice doing a thing.

 

• Using and keeping up with technology. Yes, we keep harping on this, don’t we? But it is important.  Selecting the right EMR solution and keeping up-to-date on new technology in the field, whether it is equipment or new computer software is important.  It doesn’t stop at just using technology to practice medicine and keep records; also use it for marketing. Finding new patients using the Internet is proving to be a boon for a lot of smaller practices with smaller budgets.  You can have a website and a mailing list to your current patients with timely topics. Most people love to read about answers to medical questions or what to do when they are ill.

Most of all, it is important to remain flexible. Healthcare, as you know, is an ever-changing field. It won’t look the same in five years as it does today or even by the end of next year. If you can remember that this type of change can be beneficial for you, as it will help you grow and improve, you are one step ahead of the game. 

You can also find some great references to running great practices at Medical Group Management Association, and a blog that we read frequently: Kevin MD.com

Clinic Service's EMR: More than Software

We have talked a lot about EMR on this blog; from buying to selecting to using.  We’ve also talked somewhat about what happens after you buy an EMR product.  A lot of companies talk about how easy their own EMR solution is easy to use.  A lot of large companies like to talk about the teamwork that it takes to make an EMR work and to onboard.  But one area that you haven’t heard much about in the world of EMR is customer service for physicians and office managers who have to use the product.

Physicians are very busy people and so are their office managers.  However, technology changes rapidly.  And at some point, physicians and office managers will see features or issues in their EMR’s that they might want changed or added.  Some small part of the workflow of adding information might just drive them crazy, and they are thinking, “if they only did it this way.” 

Anyone making any kind of software or software as a service product knows that changes are bound to occur.  Sometimes these changes involve simply changing a font color to see on the screen better; some might be bigger, like how the sequence of entering information occurs. If you are at a big company, the process to make changes is a long and tedious one.  As a customer, you usually have to call customer support or log the change on the website.   That change to the software then gets put in a queue, which is sent to a team that may or may not work on it, depending on what else is needed.  Red tape gets in the way; bigger customers might get their changes in first. After it is tested and added, it might not even resemble the change that you need to be more successful in your work.

But what happens if you have a very simple change that you would like to see? Maybe it is as simple as changing the color of the font on screen for a specific form; maybe you would like a button moved.  How would you ever get these changes to happen in a short amount of time?  The truth of the matter is, at a large software company, you couldn’t.  It would take months, and most of the time, you wouldn’t be talking to the person who has the power to make the change.  You would most likely be talking to a customer service agent or sales person who sold you the software.

At Clinic Service, we do things a little differently. Yes, our C-Suite meets all the CORHIO standards and is certified, but we asked doctors, nurses and office managers before we created the product.  With us, you talk to real people who actually are making the changes happen.  They aren’t worried about meeting a quota within our company, don’t value one customer over another, and know that physicians and office managers can always make our product better. And they love that.  They can make changes happen in weeks, not months or years.
Some of the things we love working on for our customers:

• Modify templates to change the look and feel
• Build a bridge between an existing EMR and ours, so you can use our interface
• Move your existing records easily to our solution

Think about that the next time you are frustrated with some small part of the EMR you might be working in or testing.

Medical billing and changing health care

Last week, Health Leaders posted an article from Kaiser Health addressing the new medicine model: healthcare in retail. Wal-Mart is looking at how to incorporate general care into their retail centers. Wal-Mart previously changed the game by adding $4 generic prescriptions to their pharmacies; now by adding physicians, how will this change the medical industry? Wal-Mart aims to be the largest provider of general health physicians in the United States. Walgreens, the article pointed out, already has partnered with CVS Caremark to provide services to diabetic patients. What does this mean for changing health care?

It means that those companies like Wal-Mart and Walgreens are aiming to provide a service based on a business, providing low-cost alternatives to seeing a regular physician. It also means it will change how people view doctors and specialists. One area that customers liked about general care at these box stores is that they knew the price of the service before seeing the doctor. But a worry is that with this system, the patients that use these services are the healthiest patients who do not want to have to get expensive insurance for a yearly head cold or mild asthma. Those patients who require chronic care would still require a general physician, but without reimbursement or an increase in pay to offset costs. If this does occur, this will change the healthcare system again for how and when costs are incurred. Medical billing isn’t just about making sure that bills are paid on time. It is also an effective way to offer patients a safety net by ensuring that they are being billed for procedures that are related to their conditions. Physicians that are routinely performing procedures outside of the norm are caught by the series of checks and balances that medical billing provides. Regulating retail care with a different set of rules and one fee for a procedure prior to service provides a different complex road to navigate.

Due to the implementation of Electronic Health Records in 2012, medical billing will most likely be tasked to medical coders and billers rather than the physician, who adds another check and balance system. Medical billers are responsible also for things making sense- there is more than one story of a mistake in the health care arena due to poorly managed health care records. Good medical billers see through those inconsistencies and ensure proper diagnosis codes.

One concern of moving to a Wal-Mart system is maintaining good health records. Big-box stores may not be ready to handle the complexity of health care issues, as it is more complicated than just offering simple care. Right now, they have contracted using an EMR software so they can develop a Personal Health Record for all patients using Wal-Mart’s system. However, good quality care is more than software; large companies have more room for errors and maintenance. The next several years in health care will be exciting to see how the developments today change the way we look at healthcare tomorrow. Medical billing will continue to be an important factor for maintaining health records in the United States.

ANSI 5010: 5 Ways an Outsourced Medical Billing Company Can Make the Transition Pain-Free

The worries about implementing ANSI 5010 by January are piling up. Last month, the Medical Group Management Association has asked for a contingency plan for those physicians not ready for the ANSI 5010 deadline in January 2012. What about those physicians who just aren’t ready for ANSI 5010?  This follows on the heels of the Healthcare Information and Management System society concerns, recommending providers create their own contingency plans.  And it isn’t just ANSI 5010 that is worrying some.

Last week, the American Medical Association (AMA) House of Delegates voted to stop revisions on ICD-10. The ICD-10 codes do not go into effect until October 1, 2013.  With 68,000 codes, ICD-10 far surpasses the amount of codes in ICD-9, which are about 14,000.  Not only are physicians having difficulty with the amount of codes, but the complexity of it.  Other concerns were for the economics of time for physicians to learn the coding system, along with adopting EMR.

With all of these groups voicing concerns, it is easy to wonder how to ensure that by January 2012, everything in your practice will be running smoothly.  People can have a difficult time with changes, no matter how well they perform their jobs.  One of the best ways to ensure that you will be compliant by January 2012, especially if you haven’t started yet (!), is by outsourcing your medical billing.

 If you are panicking about becoming compliant, here are some things that an outsourced medical billing company can do for you:  

1)      Medical Billing companies often have their own software solution- Outsourced medical billing companies ensure that the software used is tested and ANSI 5010 compliant, leaving your practice without any worries. 

2)      Training- Medical billing companies often will train your staff for using the software and any questions you might have about ANSI 5010.

3)      Conferring with a consultant- Finding someone who knows how to keep your practice going during a transition, were it be to ASNI 5010 or going to a new software program is key. Often, the best resource is your outsourced medical billing company, as it is their entire business to keep up on any changing medical billing rules.  They can also help by advising on increasing cash flow.

4)      Contingency plan- No one wants to think about computer glitches, problems with people not understanding new rules or anything else that might arise when trying to get bills paid.  But spending the time trying to figure out what to do if something happens- only people who work day and day out would have the knowledge to come up with a great contingency plan for any glitches.   They also would be able to fix it the fastest, mainly by seeing it first.  As a physician or office manager, you wouldn’t have to see any of those issues, as the medical billing company takes care of them first. 

5)      Continue to do what they do best- Physicians and office managers are busy. Part of their time is devoted to ensuring proper coding is occurring in their offices, but they would much rather make sure that a patient is receiving quality care.  Outsourced medical billing companies will continue to do with they do best during this transition- make sure you have cash flow to run your practice.

Sometimes, it’s just best to let someone else handle all the details.  If you select this route, the outsourcing medical billing company will take on the responsibility to make sure your practice is ANSI 5010 compliant.  You can sit back and relax.

Clinic Service is happy to answer any questions about the ANSI 5010 process.  We are prepared and ready to transition any medical practice to the new regulations and our C-Suite software is approved for ANSI 5010.  We also provide consulting services for any practice.  You can contact us here.

Practice Management: Incorporating your practice

What does it mean when business managers, lawyers and consultants talk about incorporation?  Incorporating a medical practice means weighing the pros and cons. It can mean a difference in taxes, liability and costs.  Finding someone who can give advice on whether or not you should incorporate your practice can be difficult too.   Many states have different rules about incorporating medical practices. There are several areas to find information:

• Ask already incorporated small medical practices
• Consult with a business lawyer who specializes in medical practices
• A tax accountant specializing in small medical practices

Sorting through the information you receive can be very confusing.  

Sole Proprietorship vs Limited Liability Corporation (LLC)- If you are not incorporated, you are responsible for all debts the practice incurs.  These include vendor contracts, property and equipment leases.  This is known as a sole proprietorship, and you and your medical practice are considered the same on your tax returns. An LLC keeps your personal taxes and your business taxes separate; you only have liability up to the amount invested in the LLC.  LLC laws vary from state to state.  Keep in mind however, that an LLC does not protect a physician from professional negligence; insurance is still needed for this.   

If a two or more physicians start a private practice, it is usually recommended to incorporate the practice, as this protects each physician from any liabilities incurred by the other. A partnership does not offer this kind of protection. An LLC can have an unlimited number of owners.  If you are the sole doctor in the practice,

Costs- Incorporating can cost money, as consulting with a lawyer initially can start at $2000 for setup fees. Taxes are another issue. Review with an accountant how much more or less taxes you will be spending. Depending on how cash flow is in the medical practice determines the taxes for the LLC. State law also determines taxes. For example, in Colorado, an LLC is a pass-through taxation entity.  This means that profits go to the owners who pay the taxes, reporting it on their personal tax returns. This is not a popular choice for physicians.  Be sure to inquire in your home state how taxes for an LLC are determined; in other places, such as Texas, a LLP (Limited Liability Partnership) is preferred due to taxation.

If you have questions about setting up your practice, contact us for more information!

Practice Management: Starting your own practice

Physicians go into the medical field to practice medicine.  Medical school does not cover topics like hiring staff, finding a good office location, getting referrals or setting up billing systems.  Most doctors would probably admit that they never even wanted to be part of that side of medicine, the business side.  But the business side has great advantages for a physician.  A well-run practice can improve how a physician practices medicine, as it frees up time for research and spending time with patients.

The first steps to opening a practice are the tangible, business-oriented pieces that were not taught in medical school:

Securing loan financing
For those fresh out of residency, with student loan payments still looming, securing a loan to get started can be tricky.  One area that a doctor starting out can turn to is looking in medical journals for companies that specifically loan to physicians.  These types of lending companies typically have a short turnaround of loan approval, usually less than a week.  The loan will be needed for all those essential goods: staff salary the first couple months, computers, medical equipment, and of course, office furnishings.

Finding a space

Taking the time to find a place to start a practice can be tricky.  Looking around at medical campuses can be a good start.  Another area is to call a commercial real estate agent and request he/she to find several locations.   If you are solo, try to determine if your practice will grow to add another doctor or several when looking at business lease options.  It is also wise to hire a lawyer to assist with the business the lease the first go around.

Setting up the office

After the space, the furniture, computers and medical supplies need to be purchased.  One of the most important selections that we have discussed in previous blogs is purchasing software for medical billing, as well as the computers for the billing.  A great place to start for information is in the Physician’s News Digest, which has a section specific for computer advice, Medicine and Computers.  This will give new physicians a start in where and how to purchase computers that are effective for their practice.

This is only a start of some the pieces needed to start a practice in today’s changing world of medicine.  A great resource for Practice Management is the American Academy of Family Physicians (AAFP) and their section on Running a Practice.  Next week we will discuss if physicians should incorporate their business. 

If you are thinking about setting up your own practice, feel free to contact us for an initial consultation!

How Much Money Will Your Medical Practice Save?

In the current economy, saving money is important for everyone, especially small medical practices.  Figuring out where to cut costs is important. However, for some medical offices, it is difficult to find the areas where cost reduction is beneficial.  One area to look at is medical billing.  Some physicians enjoy performing their own medical billing and are experts.  Others like having office staff perform the task, trusting they will find the best ways to increase cash flow back into the practice, and keep claim returns low. Still another group of physicians prefers to outsource it to a professional medical billing firm that specializes in billing, collections, and practice management.  One of the best reasons to outsource is to increase the amount of money collected than a physician or his office staff would be able to, due to time constraints or lack of training.  

But there are other reasons that a physician should look at when reducing costs in his/her office.  By outsourcing, you will be reducing overhead costs associated with retaining employees.  The burden of hiring and training employees, plus the cost of health benefits, would now be in the hands of the outsourcing company.  Analyze your current costs to determine how much your practice spends.  As your practice gets busier, outsourcing may make sense financially, and it will free up time for your office manager to work on tasks that are more important.

Another area to look at is the cost of staying current with ever changing legal and regulatory issues. Quality outsourced billing companies invest heavily in training and resources that enable them to adapt to industry changes, and have a strong checks and balances system.

We have spoken of technology in previous posts; sometimes it is easier to outsource electronic medical billing, as it is easier for the physician and office manager who might be too busy to learn a new technology, no matter how simple it is.

However, what most physicians need are the numbers to know if they will actually reduce costs.  Clinic Service has a new Medical Billing Calculator, to help you determine if outsourcing will save you money.  Click here and check to see if we can help you reduce costs in your medical practice.

Ease of Use with Medical Billing Software

When looking at software for following the new regulations, it is important to understand if the software is compliant with new health regulations.  But for many people, understanding basic technology to make a sound decision when selecting software or outsourcing is important.  Phrases like “end user experience” “ease of use” and “SaaS” might be self-explanatory for some, but for others, those words could be in a different language.  Let’s look at what those terms mean, and how they can help you make a good decision when selecting a software solution.

SaaS

People often use the terms SaaS, cloud computing and cloud services interchangeably.  But what exactly do these terms mean? In its simplest form, Software-as-a-Service (SaaS) just looks like a website that users can log into much like an online email account.   It is called a service because the software is not loaded onto a user’s computer- it is only accessed from the internet.  This can make the life of technology providers at companies much, much easier.  Anytime software is downloaded and used by users on their laptop, the information from the software (word documents, power point presentations, spreadsheets, etc.) must be backed up and stored somewhere.  Software as a Service does all the storing of information and all the backing up, taking the pressure off of someone locally in the office.

Cloud computing or cloud services, is when multiple  SaaS products are utilized, creating a network that is not managed “in house” but by another company who is backing up all of the information, making sure the software people are logging into works, and providing customer service.

When selecting a SaaS product, it is important to also look at the “end user experience” and “ease of use”.  Since the entire customer support for SaaS products is off-site, looking at how easy it is to use.  What does that mean?  When looking at software for the first time, ask yourself these questions:

• Does it clearly show or tell the user how to start using the software?
• Is the information on the screen easy to find?
• Is it easy to tell what actions are available? (Creating bills, new customers, etc.)

If you are struggling to even login to the software or don’t understand the first steps of getting started, it could mean that you should look at another software product or look and see what training is offered. However, any SaaS products should be simple to use without confusing users right away.  Training should involve more complex tasks of the medical billing process.

Of course, with ever changing  guidelines and regulations, be sure to also make sure that the software follows all new regulations.  If not, your practice could be facing some headaches that could have been avoided.

7 Strategies to Improve Medical Billing in Your Practice

Medical billing can be thought of as numbers and codes; paperwork and forms.  But correct medical billing can prevent monetary issues for families, and difficult  accounting issues for medical practices.  Both sides benefit by feeling successful ; the patient feels they are just not a bill to their physician, and physicians know they can keep giving successful care.  But what are some of these best medical practices to make this work?

1) Make sure that your medical billers check first and see what is covered on each patient’s
    insurance and what is not. This saves time down the road. Verify with insurance providers
    what procedures are covered.

2) Understand the coverage that is offered to each patient. Read the small print.  Read
    everything that is involved with each patient; some plans are very similar but will leave out
    key pieces that others cover.

3) Have a great administrative assistant.  Those medical offices fortunate with a  great
    organizer at the front of the office can take care of a lot of pain up front by collecting
    payments and copying insurance cards.  Just being consistent across the board when
    dealing with patients can reduce problems with end of month cash flow.

4) Double-check! Make sure to double-check your claims after coding them.  One of the
    biggest problems in medical billing is simple human error.  Double-checking information saves
    time in the end (and at the end of the month crunch time when money needs to be coming
    in the door).

5) Use a contract service for claim scrubbing.  Companies like Clinic Service can offer great
    outsourcing of medical billing skills plus recommend sophisticated software that ensures
    errors are caught before they are sent to an insurance company.

6) Review your revenue cycle. Take a close look at how long your revenue cycle is taking;
    electronic claim filing should speed this process up and also reduce costly errors dramatically.

7) Be sure to follow up! See what is taking insurance providers, especially Medicaid and  
    Medicare, from paying you.

Clinic Service offers all of these services for successful medical claim management.  We don’t just double-check claims, we triple-check.  We follow up on every claim, review revenue cycles with you and work closely with your office staff for success.  We train your administrative staff for best practices in dealing with all types of cash/insurance situations, and work extra hard at making sure your billing cycle is a success.

 

Clinic Service is Finalist for "Best Places to Work"

Great news!  We are thrilled to announce that Clinic Service is a finalist for the “Best Places to Work in Denver”, sponsored by the Denver Business Journal.  We will know our official “rank” at the awards banquet on November 18.  Needless to say we are excited to receive the mention and optimistic to win. How cool would that be!!

The real joy of this recognition exists in the efforts it takes to earn it.   It is our intent that by providing the best environment for our people to perform at Clinic Service, that the subsequent positive outcomes are reflected back to you in the form of results.    

I’ll keep it brief for now.  Just thought you’d like knowing of our accomplishment.  Thanks for your ongoing support.