Managing the flow of payments in your organization can have a profound impact on your organizations overall success/effectiveness of reconciling your accounts receivable. Organizations that excel at Payment Management have lower days in AR and increased payments overall. Setting this as a priority allows Accounts Receivable departments to focus timely on denials and aged follow-up thus utilizing their people effectively to resolve unpaid claims.
Payment Management is the process of receiving payments, deposit of funds to your bank, the posting of payments to your practice management system, reconciliation of posted payments back to what was recorded in your bank account, auditing of your payments for contractual discrepancies. Simple right?
Not a simple task and this process has changed significantly over the years and with innovation in technology, electronic commerce, lockboxes and online bill payments some would argue that trying to manage this has become more cumbersome with the different points of entry for deposits and the matching of those deposits to Explanation of Benefits (eobs) that could be delivered electronically or on paper has made this much more complex in a lot of ways.
As a CFO, the following capabilities are essential for you.
Our clients are able to
Exceeding industry standards
CFOs and Revenue Cycle Leaders understand the significance of establishing efficient, cost-effective, accurate processes that ensure accountability across the entire revenue cycle. Would you be interested in implementing a process that an external auditor would describe as “exceeding industry standards and should be a model for all”?
Historically, cash posting or cash application, which we refer to as “Deposit Management,” has been subject to inadequate oversight, lack of controls, productivity standards, and most importantly, a failure to integrate with electronic banking data that has been available for many years.
Organizations that excel in “Deposit Management” have invested in integrative technology to support their dedicated personnel in performing an increasingly intricate and costly task: reconciling deposits with posted payments. These organizations have prioritized the posting of payments and rejections, and have put processes in place to ensure all items are accounted for, timely, and accurate.
By utilizing the available functionality within your current practice management infrastructure, tapping into the expertise of your dedicated personnel, and collaborating with your banking partners, we can help you improve upon your current state. Many organizations are still struggling to balance their accounts or not prioritizing balancing at all. Achieving balance is a substantial endeavor in itself, but the significance of balancing cannot be overstated, given the potential impact when it is neglected.
MD Solutions “Deposit Management” consulting can make it happen!!!
The organizations we work with have made substantial investments in their Practice Management Systems, which offer a means to oversee projected payments from contracted insurance plans. Certain systems are able to import contracted fees directly, establishing them as the standard payments or allowances to anticipate for the corresponding procedure codes.
Effective management of fee schedules and payment monitoring plays a vital role in the revenue cycle process. Those who excel in this area leverage data from multiple sources and seamlessly integrate it with their core practice management system. As a result, they are able to effortlessly update insurance companies’ allowable or contracted amounts, streamlining the entire process.
Organizations that effectively handle their Insurance Contracts are well positioned to know when they are being underpaid in accordance with their contract terms. The crucial factor lies in their utilization of available tools within their practice management system and reporting tools, which they have already invested in. By prioritizing payment accuracy, these organizations tend to be among the top-performing practices in the industry.
Our clientele consists of two groups: those seeking to enhance internal efficiency in this process and those aiming to decrease the overall expense associated with fee validation by external software-as-a-service providers that still require the laborious task of system maintenance and updates.
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