Management by Reports:Accountability at its Best

June 11, 2008Miriam Lieber

2

Agenda• Reduce/eliminate duplicative functions• Automation for employee tracking • Create efficiencies…save time and

money • Manage from reports• Inventory management

3

Ask Yourself…• How often does staff use manual intervention to

solve a problem?– Manual log of patients by a product/supply?– Cut and paste data from your billing software into an

excel spreadsheet? • How often do you find employees searching every

desk and file for a patient chart? • Do you have to physically check inventory before

deciding if you can accept an order? • Do you often find that faxed orders are missing or

never make it to your desk?

4

When you find a manual function, determine how it can become

an automated task.

5

Detecting Manual Work• Evaluate each department within your company• Observe conduct – watch for hand written

functions– Patient notes – 1-31 tickler files for written orders and CMNs

• Numerous checklists • Limited understanding of software and its

capabilities

6

Your Expenses

• Employees– Wages and benefits

• Cost of goods– Inventory

• Select Administrative costs– Storage/warehouse – real estate– Delivery/shipping– Order processing – intake to collections– Computer costs

7

Using Automation to Maximize Efficiency

8

Employee Tracking

• Assign tasks and track via software • Track quantitative results

– E.g. Orders taken by CSR rep• Easy to calculate incentives if progress is

monitored in automated fashion– Dollars collected from A/R project

• How does this improve productivity?

9

Small Change – Big Impact• Seek additional training, re-training

– Use internet training and testing resources– Reduce staff turn-over -- improve bottom line

• Most HME companies use 50% of software’s capabilities• Learn nuances and shortcuts

• On-line eligibility and verification of insurance benefits• Data collection for strategic decisions

– Disease state and equipment– Length of use– Average payment turn-around time

• Imaging today is affordable and makes dramatic impact on operation

10

Managing by Report

• Intake – Daily revenue figures– Insurance verifications– Sales/referral source tracking

• Open order report– Undelivered sales versus actual deliveries

11

Managing by Report

• Cash collections (COD)/retail• Documentation• Billing/revenue versus receivables

– Correspondence tracking– Billing to collection ratio

• Length of time from billing to collections

• Manage write-offs– Measure against percentage of A/R

12

Managing by Documentation Reports

• Report of held billing by:– Dollars– Doctor

• Clinic, specialty– HCPCS/Item– Written order versus CMN– Age – How many days do you await

documentation?

13

Authorization Management

• Track authorizations and re-authorizations separate from CMNs and written orders

• Lead time on re-authorizations and recertifications

• Can you track status checks?– Last action taken, next step, tickle date

14

Confirmation Tracking

• Number of unconfirmed orders• Number of confirmed orders• Look for benchmark and trends• Measure for accuracy• Monitor productivity

15

Accounts Receivable Management

– A/R Reports• Sort A/R by payer/age

– Segregate old from new A/R• Compare cash receipts to collections• A/R as a percentage over 90 or120 days• Write-offs/bad debt percentages• Days Sales Outstanding (DSO)

16

Referral Source Tracking

– Referral source report• Track generic and specific referrals

– Within clinic or hospital• Track by payer

– Competitive bidding segregation • Track by equipment• Historical, aggregate aging (year -to-date, this month last year)• Revenue per patient• Teaches where to focus marketing efforts

– Do you conduct routine needs assessments?

17

Other Reports• Consider using claim filing and remittance software to

monitor and manage denials– Optimally your software will incorporate this function into

software– Non integrated solutions =RemitData

• Enables you to track Medicare, Medicaid and other third party payments

– Assists in managing A/R more effectively– Provides on-demand EOBs

• Private pay collection management– Outsource or maintain internal control – Measure effectiveness of current efforts

18

Ultimate Inventory Management

• Manage inventory control via bar coding – Real time solution– Eliminate theft and loss/shrinkage– Improve operational efficiencies

• Easy automated purchasing/ordering, receiving, stocking

– Use scanner to dispense product• Instant updates

19

Tracking Inventory • Reporting for monitoring

– Quantity on hand by warehouse– Most readily used products

• Profit margins– Preferred vendors

• Formulary management & control– Inventory turns– Cost of goods by product & category– Asset value – depreciation– Physical count – Items on repair – quantity

20

Competitive Bidding• Requires quarterly inventory reporting

– Manufacture – Make – Model

• Quantity of product type sold/rented– By payer, percentage

• Delivery method• Compare inside CBA versus outside

– Comp. bid products versus others

21

Control Your Own Destiny• Data control and management prepares you for

your future– Buying another company– Selling your company – Expanding into other locations and product lines– Growing retail segment

• Knowing your financial status prepares you for important strategic decisions

22

Summary• Evaluate internal operations • Look for ways to increase efficiencies through automation• Maximize use of software • Use management reports to track business • Inventory management is essential for enhanced

productivity and competitive bidding reporting• Use software for inventory tracking, accountability,

operational control and planning your future• Outcome: realize increased profitability

23

Speaker Information• Miriam Lieber• President, Lieber Consulting• 15030 Ventura Blvd.• Sherman Oaks, CA 91403• 818 789 0670• Fax 818 990 9466• Email: Miriam@lieberconsulting.com• Website: Lieberconsulting.com