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emergency department
financial triage
especially now
“
The new legislation will impact emergency
physicians greatly as newly insured patients find it
difficult to find primary care doctors who accept
their insurance.

I recently saw a Medicaid patient who received a
medical card with the name of a doctor who was
to be her primary care physician only to find out
that he was not accepting any new patients.
This lack of good primary care for Medicaid
patients is a tragedy made more acute by the 16
million plus patients who will join the Medicaid
ranks in the years ahead.
                           Dr. Michael Nauss is an emergency room
                           doctor in Ohio
“
My concern is how quickly (the legislation) was put
together and really how it will actually work.

For example, Massachusetts has passed similar
reform and emergency department visits are
increasing and certain hospitals are cutting back
on services and patients are often waiting longer
for care.

Just passing the bill is not enough. Congress
needs to start working now on the details of the
health care reform plan.
                           Dr. Paul Kivela — an emergency physician
                           at Queen of the Valley Medical Center and
                           co-managing partner of Napa Valley
                           Emergency Medical Group
copay

                        self pay



              charity
                               medi-cal

third party
triage
noun
1 the action of sorting according to quality.
2 (in medical use) the assignment of degrees of urgency to
wounds or illnesses to decide the order of treatment of a
large number of patients or casualties.

verb [ trans. ]
assign degrees of urgency to (wounded or ill patients).

                              New Oxford American Dictionary
copay




                   medi-cal
self pay
medi-cal copay   self pay
rethink retool remodel
Expected Gains
more money, quicker
 copay collections
 deposits
 payment arrangements
prepped accounts
 insurance verification
 completed forms
 information pass-through
decrease time to disposition
 eligibility categorization
 TOS information gathering
 dispersion via matrices
rethink
“

                                                              Rethink
Staggering under a load of bad debt, many
hospitals have started asking patients to pay at
least part of their out-of-pocket responsibility
before they receive healthcare services. Although
the rewards can be great, initiating the program
is not easy because registrars may be
uncomfortable with the responsibility of asking
patients for money.

• Prioritize Collection Events
• Define the Scope and Scale of Collection
  Efforts
• Incentives May Increase Collections
                   Boosting Point-of-Service Collections

                   HFMA Patient Friendly Billing, Jan. 2010
Rethink
staff training
  your staff
  other departments
patient education
  available information
  counseling /education
business rules
  general goals
  predictive assessment
  workflow initiatives
  documented rules
  audit routines
retool
“

                                                                 Retool / Technology
IRS Form 990 Schedule H requires hospitals to
estimate the amount of charity care in their reported
bad debt. Are you ready to document this
information—and prove it?

At a Glance

•   IRS Form 990 Schedule H requires hospitals to
    estimate the amount of bad debt expense attributable
    to patients eligible for charity under the hospital’s
    charity care policy.
•   Responses to Schedule H, Part III.A.3 open up the
    entire patient collection process to examination by
    the IRS, state officials, and the public.
•   Using predictive analytics can help hospitals
    efficiently identify charity-eligible patients when
    answering Part III.A.3. 
                       A Form 990 Schedule H Conundrum: How
                       Much of Your Bad Debt Might Be Charity?

                       HFM Journal, April 2010
Retool / Technology
what examples of
technology are
in use?
Retool / Technology
registration system
registration codes
financial classes
payor selection
customized field utilization

pros / cons
Retool / Technology
homebrewed system
tracking system
{charity,
 medical assistance,
discounts, cash collections}
status reporting
link back

pros / cons
Retool / Technology
bolt-on system
actionable
sophisticated functions
real time categorization
edi with patient acct. system

pros / cons
remodel
“

                                                          Remodel / Workflow
To improve patient flow in the ED, hospitals
should:
• Establish a measure of patient demand by
  hour, and design a system to handle it
• Appropriately capacitate triage processes
  and systems
• Use a system for patient segmentation and
  establish distinct processes for different
  patient segments
• Consider using team triage, and examine
  current triage protocols
• Devise a method of tracking patients and
  results Field a willing staff with a burning
  platform
                 Improving patient flow in the emergency
                 department.

                 HFM Journal, November 2008
Remodel / Workflow
physical patient flow
one-way traffic
funneling to financial triage
incentives
Remodel / Workflow
“
Success of technology
applications depends on
quality of utilization.
Remodel / Workflow
process flow
connect technology to staff
trace account flow to end
predict disposition and prioritize
use hierarchy for work flow
know the crossover

manage exceptions
Example
In a scenario of a busy
emergency room, one person
has 5 patients waiting to be
financially triaged, with only 30
minutes to see them all. All five
patients are covered, and each
has a $100 E.D. co-payment,
and one of the five presented
as a result of a car accident.
Example
progressive department
insurance verified
policy matrices
special factor recognition
skipping ahead
Example
All five accounts are paid by
insurance. For easy math, let’s say each
account’s balance was $2500, and
insurance paid 30% less the E.D. co-
payment, so insurance paid $720 for
each account. Let us also congratulate
our E.D. personnel and collections
staff, because three patients paid
upfront, and a fourth paid through the
mail. Total collections for these five
accounts was $4000 on $12,500. Not
bad at all.
Example
optimal result?
 good screening
 excellent collections
 no loss from insurance

 what about the car accident?
Example
Staff in the E.D. during the screening
process was able to determine the auto
carrier, and policy number; they even
loaded it as the primary insurance in the
billing system. Unfortunately, the auto
carrier did not pay, as “policy limits
have been met.” The claim, thus, was
billed to the group health plan and paid.

{We’ll overlook that the claim was
denied by the group plan, because of a
missing accident questionnaire.}
what grade would
 this effort earn
 at your facility?
looking back
Example
what we know
all 5 patients are covered
$500 max from copays
potential tpl, 100% of charges

we still have PFS back-stop
work the car wreck first
Example
it takes time
 accident information
 patient interview
 various authorizations
 adjuster contact info
Example
When we’re done, we only have ten
minutes, so we work with one patient
and collect one co-payment. One out of
five is not a good percentage, but now
let’s jump forward in time, and count
the money again.
Example
The four non-accident accounts were paid by
insurance to the tune of $2880, add in the $100
co-payment we collected upfront, and another
$100 paid through the mail, and we’re at $3080.
The one patient still did not pay their co-payment,
and a second patient did not pay either, based
on our missed opportunity to screen them. That
leaves us with the auto insurance account.

Hard work paid off, and by taking the steps
required to actually collect from the auto-carrier,
the hospital received payment of $2500 from the
MedPay policy. In the end, our work in the E.D.
resulted in total collections of $5580, which is
$1580 more. Not bad for a half hour’s work. Also,
keep in mind we saved the patient $100, a definite
plus for patient service.
gardner group
corey shank
cshank@gardnerteam.com

www.gardnerteam.com
(800) 401-4060
VENDOR PERFORMANCE FORUM
 Come be a part of an online forum for
 providers and vendors that focuses on
 vendor management and performance
 based solution acquisition.


            vpf.tumblr.com

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ED Financial Triage

  • 3. “ The new legislation will impact emergency physicians greatly as newly insured patients find it difficult to find primary care doctors who accept their insurance. I recently saw a Medicaid patient who received a medical card with the name of a doctor who was to be her primary care physician only to find out that he was not accepting any new patients. This lack of good primary care for Medicaid patients is a tragedy made more acute by the 16 million plus patients who will join the Medicaid ranks in the years ahead. Dr. Michael Nauss is an emergency room doctor in Ohio
  • 4. “ My concern is how quickly (the legislation) was put together and really how it will actually work. For example, Massachusetts has passed similar reform and emergency department visits are increasing and certain hospitals are cutting back on services and patients are often waiting longer for care. Just passing the bill is not enough. Congress needs to start working now on the details of the health care reform plan. Dr. Paul Kivela — an emergency physician at Queen of the Valley Medical Center and co-managing partner of Napa Valley Emergency Medical Group
  • 5. copay self pay charity medi-cal third party
  • 6. triage noun 1 the action of sorting according to quality. 2 (in medical use) the assignment of degrees of urgency to wounds or illnesses to decide the order of treatment of a large number of patients or casualties. verb [ trans. ] assign degrees of urgency to (wounded or ill patients). New Oxford American Dictionary
  • 7. copay medi-cal self pay
  • 8. medi-cal copay self pay
  • 10. Expected Gains more money, quicker copay collections deposits payment arrangements prepped accounts insurance verification completed forms information pass-through decrease time to disposition eligibility categorization TOS information gathering dispersion via matrices
  • 12. Rethink Staggering under a load of bad debt, many hospitals have started asking patients to pay at least part of their out-of-pocket responsibility before they receive healthcare services. Although the rewards can be great, initiating the program is not easy because registrars may be uncomfortable with the responsibility of asking patients for money. • Prioritize Collection Events • Define the Scope and Scale of Collection Efforts • Incentives May Increase Collections Boosting Point-of-Service Collections HFMA Patient Friendly Billing, Jan. 2010
  • 13. Rethink staff training your staff other departments patient education available information counseling /education business rules general goals predictive assessment workflow initiatives documented rules audit routines
  • 15. Retool / Technology IRS Form 990 Schedule H requires hospitals to estimate the amount of charity care in their reported bad debt. Are you ready to document this information—and prove it? At a Glance • IRS Form 990 Schedule H requires hospitals to estimate the amount of bad debt expense attributable to patients eligible for charity under the hospital’s charity care policy. • Responses to Schedule H, Part III.A.3 open up the entire patient collection process to examination by the IRS, state officials, and the public. • Using predictive analytics can help hospitals efficiently identify charity-eligible patients when answering Part III.A.3.  A Form 990 Schedule H Conundrum: How Much of Your Bad Debt Might Be Charity? HFM Journal, April 2010
  • 16. Retool / Technology what examples of technology are in use?
  • 17. Retool / Technology registration system registration codes financial classes payor selection customized field utilization pros / cons
  • 18. Retool / Technology homebrewed system tracking system {charity, medical assistance, discounts, cash collections} status reporting link back pros / cons
  • 19. Retool / Technology bolt-on system actionable sophisticated functions real time categorization edi with patient acct. system pros / cons
  • 21. Remodel / Workflow To improve patient flow in the ED, hospitals should: • Establish a measure of patient demand by hour, and design a system to handle it • Appropriately capacitate triage processes and systems • Use a system for patient segmentation and establish distinct processes for different patient segments • Consider using team triage, and examine current triage protocols • Devise a method of tracking patients and results Field a willing staff with a burning platform Improving patient flow in the emergency department. HFM Journal, November 2008
  • 22. Remodel / Workflow physical patient flow one-way traffic funneling to financial triage incentives
  • 23. Remodel / Workflow “ Success of technology applications depends on quality of utilization.
  • 24. Remodel / Workflow process flow connect technology to staff trace account flow to end predict disposition and prioritize use hierarchy for work flow know the crossover manage exceptions
  • 25. Example In a scenario of a busy emergency room, one person has 5 patients waiting to be financially triaged, with only 30 minutes to see them all. All five patients are covered, and each has a $100 E.D. co-payment, and one of the five presented as a result of a car accident.
  • 26. Example progressive department insurance verified policy matrices special factor recognition
  • 28. Example All five accounts are paid by insurance. For easy math, let’s say each account’s balance was $2500, and insurance paid 30% less the E.D. co- payment, so insurance paid $720 for each account. Let us also congratulate our E.D. personnel and collections staff, because three patients paid upfront, and a fourth paid through the mail. Total collections for these five accounts was $4000 on $12,500. Not bad at all.
  • 29. Example optimal result? good screening excellent collections no loss from insurance what about the car accident?
  • 30. Example Staff in the E.D. during the screening process was able to determine the auto carrier, and policy number; they even loaded it as the primary insurance in the billing system. Unfortunately, the auto carrier did not pay, as “policy limits have been met.” The claim, thus, was billed to the group health plan and paid. {We’ll overlook that the claim was denied by the group plan, because of a missing accident questionnaire.}
  • 31. what grade would this effort earn at your facility?
  • 33. Example what we know all 5 patients are covered $500 max from copays potential tpl, 100% of charges we still have PFS back-stop
  • 34. work the car wreck first
  • 35. Example it takes time accident information patient interview various authorizations adjuster contact info
  • 36. Example When we’re done, we only have ten minutes, so we work with one patient and collect one co-payment. One out of five is not a good percentage, but now let’s jump forward in time, and count the money again.
  • 37. Example The four non-accident accounts were paid by insurance to the tune of $2880, add in the $100 co-payment we collected upfront, and another $100 paid through the mail, and we’re at $3080. The one patient still did not pay their co-payment, and a second patient did not pay either, based on our missed opportunity to screen them. That leaves us with the auto insurance account. Hard work paid off, and by taking the steps required to actually collect from the auto-carrier, the hospital received payment of $2500 from the MedPay policy. In the end, our work in the E.D. resulted in total collections of $5580, which is $1580 more. Not bad for a half hour’s work. Also, keep in mind we saved the patient $100, a definite plus for patient service.
  • 39. VENDOR PERFORMANCE FORUM Come be a part of an online forum for providers and vendors that focuses on vendor management and performance based solution acquisition. vpf.tumblr.com

Editor's Notes