Robert Westergard, CFO of Ambulatory Surgical Centers of America, makes the following points on managing billing and collections to immediately improve profits. He spoke in a 90-minute workshop with two other ASCOA executives at the 9th Annual Orthopedic, Spine and Pain-Management Driven ASC Conference in Chicago.
Keep track of loans. Understand and keep track of your loan agreement. Loan covenants, for example, require the borrower to fulfill certain conditions or default on the loan. "Default is a very scary thing," Mr. Westergard observed. "If you have a chance to avoid default, do everything you can." Defaulters have to pay a hefty fee or take a higher interest rate.
Get involved in billings and collections. The ASC administrator's involvement is the single biggest factor in the success of billing and collections. The administrator should have direct experience in billing and collections.
Pre-verify benefits. Verify benefits before surgery so that the patient's share can be collected during the visit. "If you can do this, you've just wiped out a big part of your collection problems," Mr. Westergard said. Having to call each patient afterwards is a lot of work with a relatively low yield.
Learn more about Ambulatory Surgical Centers of America.
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