It is not uncommon for ASCs, especially smaller facilities, to outsource billing operations to revenue cycle management companies.
In a new report published in October, Surgical Notes identified eight red flags for ASCs to watch for when seeking a billing-cycle partner.
Eight billing partner red flags for ASCs:
1. Lack of communication. Ensure that ASCs are assigned a dedicated person at the billing company who will promptly respond to queries. Ensure there is a clear system for responding to queries.
2. Decreasing collections and strained cash flow. Be sure that when entering the partnership, the billing company prioritizes completing an extensive assessment of its new client's revenue cycle performance to identify problems and opportunities for improvement. There should be an initial action to address collections and cash flow.
3. Reporting problems. Billing companies should provide regular client reports. Companies should also have access to analytics systems to take a deeper dive into revenue cycle performance.
4. Declining KPIs. Companies should closely monitor client key performance indicators. ASCs should be informed of their KPI performance and changes over time. Among these KPIs are accounts receivable over 90 days, denial rates, collection rates and percentage of cash goal reached.
5. Limited analytics. Billing companies should be using analytics to improve client performance.
6. Disorganized management and staff turnover. ASCs should be sure of who serves as their account manager. ASCs should not have to struggle to get in touch with executives.
7. A lack of ongoing support and education. Billing companies should be providing ASCs with educational support and resources.
8. Lackluster commitment to security. Billing companies should make ongoing investments in security. They should have powerful encryption techniques, and inform ASCs of any upcoming security changes.