Here are five ways orthopedic practices can increase revenue.
1. Incentivize employees to keep a close eye on revenue cycle management. Not keeping track of the accounts receivable and billing process is one of the biggest mistakes orthopedic practices can make, says Nancy Moore, president of NBP, a practice management support company. "Often, the physician trusts employees to do the best job possible to manage the A/R and billing process, and sometimes it's not being handled well," she says. "Employees should be educated every year about reimbursement changes and carrier level changes. You also have to have good oversight from the management."
The trained employees who handle the revenue cycle responsibilities should be compensated appropriately because these employees are controlling the practice's cash flow. "In oversight, employees really need to be held accountable, incentivized and rewarded for good work," says Ms. Moore. "This doesn't always happen, especially now when it's tough to get reimbursement, but at the same time you can't cut corners." Orthopedic practices should set solid goals for the revenue cycle managers, such as maintaining the A/R greater than 120 days at 15 percent or lower of total A/R, a net collection ratio greater than 95 percent, and incentivize employees with compensation when goals are met.
2. Add a DME program. An orthopedic practice can either operate its own program, which would be most profitable, or bring in a DME company, which pays the practice rent, to manage a program, says John Davis, MBA, principal of Medical Practice Consulting, a medical practice consulting firm based in Bantam, Conn. Mr. Davis reports many practices operating their own programs house their DME services within their physical therapy departments. Glen Prasser, CEO of Beacon Orthopaedics and Sports Medicine in Sharonville, Ohio, says the practice offers DME and orthotics on site but has partnered with BioWorks, an outside company, to run the program and does so for the convenience of the patient.
Rockford Orthopedic Associates operates its own program, employing a manager to oversee the department, in addition to other departments, and a podorthist to custom fit braces and other orthotics. The practice is looking at hiring an orthoist in the future, allowing the program to make prosthetic limbs and custom braces as well. If an orthopedic group chooses to run their own DME service, Mr. Davis says it is important to run the program like a business. "If you run it like a business, there is some money to be made, but if all you have is a disorganized closet, you're likely to lose money," he says.
3. Build a physical therapy program. Orthopedic practices have the option of partnering with rehabilitation and physical therapy organizations to provide physical therapy, but Andre Blom, a physical therapist at the Illinois Bone and Joint Institute, recommends hiring the professionals on as part of the practice's staff. "When you have your own employees, it's easier to do program development and risk management," says Mr. Blom. "You have to have a lot of faith in the other organization to do things right 100 percent of the time." Additionally, high turnover rates for physical therapists and differing goals among the two organizations can make a partnership difficult. "We have a much higher level of satisfaction among our staff and less turnover when we hire them directly," says Mr. Blom.
4. Hire a physician's assistant. After taking the time to perform surgeries and deal with the administrative aspects of a busy practice, if a surgeon feels like there isn't enough time to spend with patients during initial visits, he or she should hire extra staff to spend time with patients, says Dr. Levitz. "Some people think it's a waste of space and resources to hire extra personnel, but you want to invest in your resources," says Craig Levitz, MD, an orthopedic surgeon and partner at Orlin & Cohen Orthopedic Associates in Rockville Centre, N.Y. "You are better off having an extra nurse to develop a relationship with the patient and hire extra staff to deal with the administrative aspect of the practice." He also suggests hiring a physician's assistant to make sure the patients are satisfied with their visits. The PAs can listen to patient stories and relay the important aspects to the surgeon before he or she visits the patient to save time. "You can bridge the quality gap with a good physician's assistant," says Dr. Levitz. The PA can also assist in the OR, and the practice can collect revenue for the assistance.
5. Attract more cash patients. To ensure reimbursement for services rendered, orthopedic surgeons can focus on attracting patients who are willing to pay cash before the appointment. "Orthopedics as a specialty has quite a lot of patient turnover so practices need to aggressively find new patients," says Scott Sangster, CEO of Health In Reach, a website designed to connect patients who are willing to prepay for services with surgeons in their area. "Compared to insurance patients with low reimbursement rates, patients who pay cash can be much more profitable since the provider can set their own prices and there's less paperwork." Traditionally, referrals from cash patients have come through general practitioners or insurance companies, and these patients were difficult to come by. However, the website offers a third option for surgeons to market to these types of patients.
"Because the appointment is prepaid, the physicians don't have to worry about collections, delays in payment or no-show patients," says Mr. Sangster. "These patients also tend to help maintain the provider's schedule better because they have some skin in the game." He says that there are several types of patients who are willing to prepay for the appointment in exchange for a discount in cost, and the physician's office can benefit from working with the patients who deliver their payments upfront.
Related Articles on Orthopedic Practices:
Providing a Superior Patient Experience: 7 Tips for Spine Centers
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6 Ways Orthopedic Practices Can Positively Confront Healthcare Changes
The trained employees who handle the revenue cycle responsibilities should be compensated appropriately because these employees are controlling the practice's cash flow. "In oversight, employees really need to be held accountable, incentivized and rewarded for good work," says Ms. Moore. "This doesn't always happen, especially now when it's tough to get reimbursement, but at the same time you can't cut corners." Orthopedic practices should set solid goals for the revenue cycle managers, such as maintaining the A/R greater than 120 days at 15 percent or lower of total A/R, a net collection ratio greater than 95 percent, and incentivize employees with compensation when goals are met.
2. Add a DME program. An orthopedic practice can either operate its own program, which would be most profitable, or bring in a DME company, which pays the practice rent, to manage a program, says John Davis, MBA, principal of Medical Practice Consulting, a medical practice consulting firm based in Bantam, Conn. Mr. Davis reports many practices operating their own programs house their DME services within their physical therapy departments. Glen Prasser, CEO of Beacon Orthopaedics and Sports Medicine in Sharonville, Ohio, says the practice offers DME and orthotics on site but has partnered with BioWorks, an outside company, to run the program and does so for the convenience of the patient.
Rockford Orthopedic Associates operates its own program, employing a manager to oversee the department, in addition to other departments, and a podorthist to custom fit braces and other orthotics. The practice is looking at hiring an orthoist in the future, allowing the program to make prosthetic limbs and custom braces as well. If an orthopedic group chooses to run their own DME service, Mr. Davis says it is important to run the program like a business. "If you run it like a business, there is some money to be made, but if all you have is a disorganized closet, you're likely to lose money," he says.
3. Build a physical therapy program. Orthopedic practices have the option of partnering with rehabilitation and physical therapy organizations to provide physical therapy, but Andre Blom, a physical therapist at the Illinois Bone and Joint Institute, recommends hiring the professionals on as part of the practice's staff. "When you have your own employees, it's easier to do program development and risk management," says Mr. Blom. "You have to have a lot of faith in the other organization to do things right 100 percent of the time." Additionally, high turnover rates for physical therapists and differing goals among the two organizations can make a partnership difficult. "We have a much higher level of satisfaction among our staff and less turnover when we hire them directly," says Mr. Blom.
4. Hire a physician's assistant. After taking the time to perform surgeries and deal with the administrative aspects of a busy practice, if a surgeon feels like there isn't enough time to spend with patients during initial visits, he or she should hire extra staff to spend time with patients, says Dr. Levitz. "Some people think it's a waste of space and resources to hire extra personnel, but you want to invest in your resources," says Craig Levitz, MD, an orthopedic surgeon and partner at Orlin & Cohen Orthopedic Associates in Rockville Centre, N.Y. "You are better off having an extra nurse to develop a relationship with the patient and hire extra staff to deal with the administrative aspect of the practice." He also suggests hiring a physician's assistant to make sure the patients are satisfied with their visits. The PAs can listen to patient stories and relay the important aspects to the surgeon before he or she visits the patient to save time. "You can bridge the quality gap with a good physician's assistant," says Dr. Levitz. The PA can also assist in the OR, and the practice can collect revenue for the assistance.
5. Attract more cash patients. To ensure reimbursement for services rendered, orthopedic surgeons can focus on attracting patients who are willing to pay cash before the appointment. "Orthopedics as a specialty has quite a lot of patient turnover so practices need to aggressively find new patients," says Scott Sangster, CEO of Health In Reach, a website designed to connect patients who are willing to prepay for services with surgeons in their area. "Compared to insurance patients with low reimbursement rates, patients who pay cash can be much more profitable since the provider can set their own prices and there's less paperwork." Traditionally, referrals from cash patients have come through general practitioners or insurance companies, and these patients were difficult to come by. However, the website offers a third option for surgeons to market to these types of patients.
"Because the appointment is prepaid, the physicians don't have to worry about collections, delays in payment or no-show patients," says Mr. Sangster. "These patients also tend to help maintain the provider's schedule better because they have some skin in the game." He says that there are several types of patients who are willing to prepay for the appointment in exchange for a discount in cost, and the physician's office can benefit from working with the patients who deliver their payments upfront.
Related Articles on Orthopedic Practices:
Providing a Superior Patient Experience: 7 Tips for Spine Centers
5 Advantages for Orthopedic Groups Aligning With Hospitals
6 Ways Orthopedic Practices Can Positively Confront Healthcare Changes