It is no secret that many hospitals are struggling with less than stellar bottom lines. Healthcare reform, ICD-10 implementation and shifting healthcare environments are making it more difficult to remain fiscally healthy and financially viable. But some organizations are thriving during this complex time of changes and they all have one thing in common, despite changes and the heavy obligations of daily tasks they focus on continuous revenue cycle improvement utilizing 4 tried and true strategies that not only juice up the revenue cycle, but lead to sustained financial improvement over time. Here is what they do:
1. Focus on Pre-Authorization and Pre-Certification
Revenue cycle optimization begins at point of entry, when a patient or client first presents for treatment. This crucial step in the revenue cycle process eliminates a separation of the clinical and the business aspects of a practice, and can lead to improved patient satisfaction. Determine multiple ways to obtain pre-certification for services, these can include online registration options such as email or web portal, but should also include personal service options to make sure that you serve all demographics. Knowing that a patient is pre-certified for care can eliminate revenue cycle hassles down the road such as denials or appeals. Pre-certification also allows the clinical side to be more informed regarding care options available to patients. Part of making patient care successful, is having it focus on patient preferences, which for many, includes affordability. Pre-certification can eliminate payment confusion down the road and will help the patient be informed regarding the care they are getting and the costs they can expect.
2. Set Revenue Cycle Benchmarks and Goals
Does your billing department have goals and benchmarks in place currently? If not, now is the time. Staff are more informed and perform better if they are aware of a goal that their department is trying to reach. Common revenue cycle goals are % of clean claims submitted, or IBNR (invoiced, but not received) goals. One practice has a goal of trying to ensure that all services are processed and payment is received within 180 days. Here are some effective tips when setting Benchmarks and Goals for your Billing/Revenue Staff
- Make sure that staff are aware of the goals/benchmarks including where they currently stand
- provide up to date reporting on how effective staff are at reaching their goals at regularly scheduled intervals (such as weekly or monthly)
- Make the goal attainable, but challenging. Start with a small goal and work your way up consistently to ensure buy-in and encourage morale
- Incentivize the goals – give staff greater motivation by creating an incentive program surrounding the goals and benchmarks you hope to achieve
- Involve staff in benchmarking and goal discussions. Often someone who deals with the issue directly can provide greater insight into where the obstacles in your revenue cycle are. Is there a bottleneck in communication? Are there common processing errors? Are front desk inefficiencies detrimentally impacting the revenue cycle? Chances are your staff will have the answers and some bright ideas on how to correct the issue
3. Optimize Your Organizational Structure
Do you currently see a lack of communication between departments such as clinical and non clinical associates? Are Billing and Collections handled by separate teams with little interface? How is the flow from a front desk operations perspective? These areas should be assessed and optimized as part of a plan to juice up your revenue cycle.
- Ensure that you are facilitating communication between all departments whether through flash meetings, newsletters, or dedicated leadership meeting
- Put in place tools that allow for effective communication and collaboration across departments
- send standard updates regarding the progress of the revenue cycle to teams/departments in other areas so that everyone is informed of performance and impacts
- look for duplication and waste in the processes regarding revenue cycle improvement
4. Manage Your Denials
Organizations can see a dramatic increase in their bottom line by simply managing denials more effectively. BHM recommends a denial management strategy based on the following CORE Principles of Denial Management. For full information on how to manage denials and recoup losses please click here: MANAGE DENIALS TODAY

state, and local legislation, and paradigm shifts caused by reform. What can providers and hospital organizations do to improve their profitability? How does an organization begin to recognize and implement changes to positively affect the bottom line?
and how to code and document. This is going to be especially important when ICD-10 is implemented. Those billing for ICD-9 codes after a certain point will automatically have their claims denied. It is of utmost importance to make sure the organization is fully versed and current on all billing and coding protocols and standards in order to receive the maximum reimbursement allowed, and the appropriate reimbursement that most accurately reflects actual services provided. Coding is changing constantly and the organization needs to adapt to and adhere to these changes in order to receive the maximum reimbursement. Special considerations when coding include:
How much can we charge for the service? What is the service reimbursement in our primary contracts established as? This is the ratio between volume and price. Do you know what the ROI needs to be to be profitable? Drilling down to the cost per service provides an opportunity for apples to apples comparisons to determine inefficiencies and target areas to improve.
may need additional assistance.

ACOs must be accredited. Currently only NCQA offers ACO accreditation. Look for details in the future to see if any of the other national accreditation organizations begin to offer this type of accreditation as well.
Summary: What can we expect in 2013 in terms of Accountable Care Organizations (ACOs)? Where are we headed? What considerations need to be taken into account?
turning point for health care and the focus on the patient.
Senior Vice President of IRO (
Organizations?
different organizations and practices working together which may include primary care physicians, specialists, hospitals, providers, payers, etc. The ACOs take medical homes a step further in emphasizing the alignment of incentives and accountability for providers across the continuum of care. There is a need for very strong leadership to address cultural, legal, and resource related barriers when creating an ACO.
webinar which was hosted by Dorland Health. The webinar featured information about the new transition codes which provide additional reimbursement opportunities for physicians and other healthcare professionals.
or skilled nursing facility, to the patient’s community setting (home, domiciliary, rest home, or assisted living) in order to prevent re-admissions. They involve one office visit, plus care coordination, in the 30-day transition period when certain patients are discharged from an inpatient hospital or nursing facility to their home, community setting, or assisted living facility. The webinar explained the new codes, provided insight as to who can bill for the new codes, which patients are eligible, and when they should be billed. Care coordination has been an important aspect of healthcare, but up until January 1, 2013, these services were not eligible for reimbursement.
perform a healthcare financial analysis. Two items to consider are scheduling and payer mix/contracting.
reimbursement rates, at least currently. That may change once the Affordable Care Act (specifically health insurance exchanges) is fully implemented.
and take necessary action steps.