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Practice Management Systems for Community Health Centers

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  • 1. PRACTICE MANAGEMENT SYSTEMS FOR COMMUNITY HEALTH CENTERS Presented by Diane Gaddis & Steven D. Weinman August 2008
  • 2. SESSION DESCRIPTION
    • This presentation will cover the basics of what constitutes a PMS system, and will provide practical advice on how to identify, evaluate and choose a suitable PMS system for a typical CHC. It will include lessons learned by the presenters, who between them have produced, chosen and successfully implemented such systems in a CHC environment.
  • 3.
    • DIANE GADDIS currently serves as CEO & President of Community Health Centers Alliance, Inc. (CHCA), based in St. Petersburg, Florida. Diane has more than thirteen years experience in the Community Health Center environment, which has included executive, information systems, and financial management roles. CHCA provides acquisition services, project management, implementation coordination, training, application support, and system management services related to practice management systems and electronic health records to CHC members in Florida. 
    • STEVE WEINMAN is currently the Executive Vice-President and COO of Collier Health Services, Inc. (CHS), a large CHC serving Collier County in SW Florida. Steve has been with CHS for 24 years starting as IT Director and moving up to CFO before being promoted into is current position. He has designed and implemented an extensive CHC practice management system which was in use for 14 years. Over the years Steve has been CEO of a new start CHC, as well as the founding CEO of CHCA.
  • 4. THE BASICS
    • Section 1
  • 5. WHAT IS A PRACTICE MANAGEMENT SYSTEM (PMS)?
    • PMS is a category of software that deals with the day-to-day operations of a medical practice.
    • Generally consists of several functions or modules, integrated into a single system.
  • 6. PMS COMPONENTS
    • Appointment scheduling-a calendaring or scheduling component that allows staff to create and track upcoming patients visits.
    • Patient Demographics-Captures basic patient data, as well as insurance and other information required to process and bill for visits, as well as to produce management reports.
  • 7. PMS COMPONENTS, CONTINUED
    • Charge, Payment and Adjustment entry-allows tracking and billing of patient visits, as well as keeping account balances correctly.
    • Accounts Receivable Management-Utilizes demographic and billing data to manage patient and 3rd party balances.
    • Electronic Claims Processing-Allows submission of billings without production of paper bills.
  • 8. SOME IMPORTANT ADDITIONAL FEATURES
    • Sliding Fee Scale calculation
    • Insurance eligibility verification
    • Credit card transaction processing & posting
    • Managed care contract posting an reporting
    • Relative Value Unit (RVU) utilization and reporting
  • 9. HOW DOES A PMS FIT TOGETHER WITH OTHER HEALTH INFORMATION TECHNOLOGY (HIT) SYSTEMS?
        • Foundational- must have a solid system to ensure smooth front line operations and revenue cycle management to fund operations and expansion into other areas.
        • HL7- should be able to connect or interface to other systems without excessive reprogramming.
        • Consider all systems you might want to use currently or in the future-accounting, eligibility, credit card processing, clearinghouses, Electronic Health Record (EHR) etc.
  • 10. SHOULD WE CHOOSE A PMS FIRST, AND THEN AN ELECTRONIC HEALTH RECORD (EHR)?
        • If a new start – doing both at the same time, with the right team and support mechanisms, is best.
        • For existing project, how adequate is the current system? What is the business driver for change?
        • Dependent upon funding availability – grant for software? Cash from Operations?
  • 11. SHOULD WE IMPLEMENT MULTIPLE SYSTEMS AT ONCE, OR DO THEM ONE AT A TIME?
    • Easier done at a new project where patient volumes are low.
    • Depends on how much organization can afford to spend.
    • If organization is already operational we don’t recommend implementing both at the same time as the impact on the organization will be enormous.
  • 12. MUST WE GET ALL OF OUR SYSTEMS FROM THE SAME VENDOR?
    • Potential Pros:
      • Single point of contact
      • Cross over accountability
      • Systems should “play nicely” together
    • Potential Cons:
      • May be weaknesses in one functional area
      • If vendor has problems, both sides of the house can be adversely affected
  • 13. MARRYING BEST OF BREED – 2 VENDORS
    • Potential Pros:
      • Quality products for both areas
      • Quality support
    • Potential Cons:
      • Interface issues in making systems work together
      • “ Finger pointing” between vendors
      • Additional costs in developing and testing interfaces between products
  • 14. SHOULD WE DO IT ALONE, OR PARTNER WITH A NETWORK
    • Pros of doing it alone:
      • CHC is the sole decision-maker
      • Needs of the individual CHC always come first
    • Cons of doing it alone:
      • All infrastructure costs (production server, redundancy, data lines) born by CHC alone
      • Required depth of staffing and diversity of skillsets born by CHC alone
      • No benefit of other expertise and collaboration
  • 15.
    • Cons of doing it alone, (continued):
      • Costs of implementation (project management, training, go-live support) born by CHC alone
  • 16. PROS OF THE NETWORK MODEL
          • Pooled financial resources enable the hiring of high quality staff
          • Working together enables the hiring of “depth”
          • Two heads are better than one – typically, setup and implementation higher quality and more successful
          • Cost sharing will allow for server redundancy, disaster recovery and other more robust solutions
  • 17. CONS OF THE NETWORK MODEL
          • Collaboration takes time and effort
          • Lots of communication is needed between partners
          • Working together requires compromises be made between partners
  • 18. ANOTHER OPTION: USE NETWORK AS A VENDOR
          • Benefit from network CHC specific expertise and alignment with CHC mission
          • Network is in more of a consultative roles
          • May be more costly than the collaborative model
  • 19. WHAT IS ROI, AND WHY IS IT IMPORTANT TO CONSIDER WHEN MAKING A DECISION?
        • Return on Investment – If there is no value, why do it?
        • Tangible costs vs intangible costs
      • Factoring in acquisition and implementation costs
      • Personnel savings and resource shifts
      • Defining recurring costs
      • Quality improvement and market readiness – intangibles to factor in
  • 20.
    • Section 2
    PROCESS OF CHOOSING A PMS
  • 21. WHAT PLAYERS SHOULD BE INVOLVED?
        • Should the process be driven by the IT department?
      • IT – support for the business departments and functions
      • IT – infrastructure, communications, desktops
        • Who should manage the project?
      • Experienced project management – poor project management can increase costs
      • Business leaders – financial and operations management
  • 22. WHAT OTHER STAFF SHOULD BE INVOLVED, AND WHAT ARE THEIR ROLES?
          • Finance – must, in advance, determine reporting needs and evaluate product. Must also understand the basics of a PMS – how to evaluate the product’s management of transactions and impact to financials
    • Operations – must, in advance, determine current and future operational, appointment, and patient flow management needs to evaluate product
  • 23. OTHER STAFF - CONTINUED
    • Billing – experienced CHC billing personnel familiar with state Medicaid and other CHC specific billing needs
    • IT – experienced in latest technologies but with an understanding of CHC constraints
  • 24. WHICH SYSTEMS SHOULD WE LOOK AT?
    • Can any Medical practice management system work in a CHC environment?
      • No - In addition to the basics that every good ambulatory healthcare office needs, CHCs require products more robust and that can meet FQHC requirements
      • Product must be able to support the varied service offerings of a CHC (ie primary care, ob/gyn, dental, behavioral health).
  • 25. WHAT FEATURE SET IS IMPORTANT FOR A CHC TO CONSIDER?
    • UDS data capture and reporting
    • Sliding Fee for different service groupings
    • Auto adjustments for FQHC reimbursement rates
    • Splitter at charge entry
    • Ability to write custom, flexible reports
  • 26. WHY SHOULD WE BOTHER GOING THROUGH THE REQUEST FOR PROPOSALS (RFP) PROCESS?
    • Dog n’ Pony shows do not ensure quality – just good vendor sales pitches
    • RFP response can become part of a contract
    • Ensures a more apples-to-apples comparative
    • Protects CEO and Board – demonstrates due diligence
  • 27. HOW DO WE DEVELOP THE RFP?
    • Requires experience and keen understanding of environment
    • Legal input is recommended
    • Evaluate the vendor and reputation in addition to the product
    • Use HRSA document as a resource for functional requirements baseline
  • 28. HOW SHOULD WE EVALUATE THE RFP RESPONSES?
    • Create a scoring tool – which of the functional requirements are “required” vs “optional”?
    • Use of a scoring tool – weighting the required items
    • Document, document, document – questions and answer exchange
  • 29. THE VENDOR WANTS TO COME DO A DEMO-WHAT SHOULD WE DO?
    • Allow free form demos first
    • Follow up with controlled demos
    • Don’t be afraid to make them demo again and again.
    • Understand that demos can have value, but they are designed solely to make the product look good and weaknesses will not be addressed.
  • 30. ONCE WE CHOOSE THE PRODUCT WE WANT, HOW DO WE NEGOTIATE WITH THE VENDOR?
    • Understand their various licensing models available
    • Understand your needs and how they much the licensing model
    • Pay the money as deliverables are met, not all up front
    • It pays to contract with a competent resource to assist in this process.
  • 31. HOW DO WE DEVELOP AN IRONCLAD CONTRACT TO PROTECT OUR ORGANIZATION?
    • Read the contract thoroughly, understand the various licensing options
    • Use a competent attorney experienced in software contracts
    • Use a competent resource to advocate for your needs and help with the review process
    • Don’t scrimp on expertise here or it will cost you in the long run
  • 32. QUESTIONS Contact Information Diane Gaddis [email_address] Steven D. Weinman [email_address] April 2008