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Billing vs. Marketing:
The War with Two Winners!
Brigette LaBar
Deborah MacFarlane
Disclosure:
Brigette LaBar –
Nothing to Disclose
Deborah MacFarlane –
President of HealthEdge Consulting, Inc
Learning Objectives:
• Explain how feedback from billing can
provide marketing with opportunities.
• Collaboration leads to increased revenue
and profitability for the radiology practice.
• Explain how to win the battle of the“hard
to collect” revenue: Brokers, Liens,
Medicaid.
Anatomy of a Medical Biller -“TAB”
• Time Urgency/Impatience
• Free-Floating Hostility or
Aggressiveness
• Competitive - Strong
Achievement Orientation
• Physical Attributes
* Facial Tension (Tight Lips, Clenched Jaw, Etc.)
* Tongue Clicking or Teeth Grinding
* Dark Circles Under Eyes
* Facial Sweating (On Forehead or Upper Lip)
Hypertension, Heart Disease, Job Stress, Social Isolation
Anatomy of a Marketer -“TBB”
Hangovers, Gym-related Injuries, Plastic Surgery Scars
• High energy “schmoozer”
• Center of attention
• Partier - “good time” working
• Short attention span
• Last minute response - deadlines
• Physical Attributes
* “Laid back” - relaxed physique
* Rapid talking, aggressive hand gestures
* Wide eyed -”deer in the headlights” gaze
* Vain - unable to pass mirrors without pausing
Without Marketing….
Ahhh - but without Billing -
There’s no Marketing $$$
“Donut Dollies”
went out
with
Paper Claims
Marketing:
•Identifying new referral
sources
•Building Relationships
•Clinical Education
•Problem Solving
•Payor Contracting
Marketing:
• Resolving Patient Complaints
• Calming referring physician
offices tired of getting endless
phone calls about auth numbers
• Talking to referring physicians
about uninsured patients
. . .and now there’s PECOS!
“Not our Fault.
Billers need data to do our job!”
 Signs and symptoms
- ICD-9 codes
 Retro-active pre-certifications
 Medicare limited coverage
 PECOS = no payment
A more realistic picture
Honey or Stings
• Marketing defender of the customer
• They have MANY choices:
– Referrals follow the path of less
resistance
– Front office staff - decision maker
• How much work do they need to do to get
the radiologist paid?
• Why can’t billers just be nice?
You’re costing us business…
“Maybe it’s business we need to lose?”
• Billing’s writing off bad debts from
the same referrers month after
month.
• Any chance some other practice fired
them and that’s why they’re referring
to us now?
• Billing types love numbers
– Why not share? 
– Marketers focus on scan volume
• Show us who the deadbeats are:
– Contracts / Physician Referrers
  Let turn this problem into an
opportunity! What can you give us?
How about some Feedback?
How about a financial scorecard?
• Contractors that aren’t paying
– brokers, over-reads, group accounts
• Referring Physicians
– Payor mix, net-collection ratio, bad-debt
– Evaluate by $$ instead of volume
• Maybe - we can work together to
improve revenues?
Financial Score Card
Rad Practice A/R Scorecard W/O Liens Liens Only Dr. Deadbeat
Adjusted Collection Percentage 98% 50% 25%
Days Charges in Accounts Receivable 46 120 175
Total Write-offs as a Percentage of Gross Charges 1.5% 10% 20%
Total Write-offs as a Percentage of Adjusted Charges 24% 50% 75%
Bad Debt Recovery as a Percentage of Collection Agency Write-offs 6% 3% 1.5%
Accounts Receivable Aging Percentage Over 120 Days 22% 50% 65%
Dr. Deadbeat refers 25% of the Liens to Rad Practice
He ONLY refers Liens
Let’s talk about -
Orthopedic Quack -“Dr. Slippenfall”
• Sends 50 MRI/month
– PI & WC Liens
– Single source law practice
• 2 years = 2% paid
– $1,200/MR = $1,440,000 in
charges
– $28,800 in collections
– $24/MR
“What about his partners?”
Drs. Peepeeo & Sea M S
• Another 50 MRI’s/month
• L-Spine - $445/Medicare
= $1,068,000 over same
2-year period
Visit Dr. Slippenfall’s office
• LCD Education
• Are there additional referrals from
non-lien payor sources?
• Is he getting paid on Liens?
• Meet with Attorney to discuss cases:
– Are we writing off too soon?
– Is there a better way to work together?
Liens as “Good” Business…
Treat Attorney like a Payor
• Set expectation over annual return
• Bad debt ratio threshold
• Flexibility to negotiate one-offs
• Settlement maze
• Lien Fee Schedule: $1200 = $1800
– Attorney’s like high charges
– Settlement nets greater reimbursement
• Communicate minimum $$$ needs to Attorney
• Billing - general guidelines for settling
• Why wouldn’t you wait 2 years for 3x the
reimbursement?
– Or sell the paper…
– Except for I. Wanadiscount, Esquire
Making Liens Make Sense
You sent Dr Jones’ PA to Collections!
• No routine write offs
for any patient group
• Professional courtesy
should be eradicated
from billing system
• Case-by-Case
Paper trail - Imarn called / issued one-time
only adjustment for specific financial status.
What about some customer service
training for the billing staff?
• Do they know?
– Payors & referring physicians are customers.
– Physician office staff steer patients to our
services.
– Our future relies on continued referrals and
positive patient experiences.
• Include Billing in customer satisfaction surveys
Dr. Fay Nancial Hardship
“Help me with my cash patients
&
You’ll get my PPO patients.”
30% off 3x Medicare fee
schedule = $935
Not affordable.
Cash Rates
If an Imaging Center is advertising under
the 100% allowable fee then it is a
violation of the MFC-
"Most Favored Nations Clause.” 
" In May 2000, …the OIG pointed out that the
exclusionary rule is "not a blanket prohibition on
discounts to private pay customers.”….
" Thus, the OIG explains, "a provider need not
even worry about section 1128(b)(6)(A), unless
it is discounting close to half of its
non-Medicare/Medicaid business."
Thomas W. Greeson Reed Smith LLC
June 18, 2010
RBMA Practice Management Forum
Dr. Older Dan Dirt
keeps ordering
R/O Herniated Disc
Not a valid diagnosis
Billers need signs &
symptoms
•Cpt codes lists
•ICD-9 cheat sheet
•Ordering Guidelines
•Laminated
Physician Education…
Dr. Precerts Office
Complaints about Billing
• Calling 12x a day for patient auth #s
– Interrupting their Workflow
• It’s too much work to get Blue Cross auths
– “Why do I have to pay someone $30,000 just
to get the radiologist paid?”
– “That company LonePhone will do the auths
for us…. we’ll just send through them.”
What can we do?
What can we do?
• Meet with Dr. Precert’s office manager
– Fax list of patients missing auths daily
– “Assist” them with Blue Cross auths
– Offer assistance with other payors
• Establish workflow protocols
• Set reasonable expectations
– Benefits of direct working relationship
OIG Advisory Opinion 10-04
addresses a proposal by several imaging providers
to offer free insurance pre-authorization
services to patients and physicians. 
“The OIG concluded that while Proposed
Arrangement could potentially… ‘violate’ the
anti-kickback statute, the OIG would not impose
sanctions in connection with the arrangement.”
http://www.oig.hhs.gov/fraud/docs/advisoryopinions/2010/AdvOpn10-04.pdf.
“The call center has to say it is calling on behalf of the
imaging center, not the referring physician.”
Thomas W. Greeson Reed Smith LLP
May 6 2010 RBMA Practice Management Forum
Medicaid, Capitation,
State-funded $40 Mammo programs
and other notoriously low payors
Great Volume - Low Reimbursement
Good for Marketers bonus - scan volume
Bad for billers bonus - collections
Questions, Comments,
Discussion?
ASRT Code:
VAD0090034
AAPC Code:
18315VEPWB

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MacFarlane And LaBar Billing Vs Marketing

  • 1. Billing vs. Marketing: The War with Two Winners! Brigette LaBar Deborah MacFarlane
  • 2. Disclosure: Brigette LaBar – Nothing to Disclose Deborah MacFarlane – President of HealthEdge Consulting, Inc
  • 3. Learning Objectives: • Explain how feedback from billing can provide marketing with opportunities. • Collaboration leads to increased revenue and profitability for the radiology practice. • Explain how to win the battle of the“hard to collect” revenue: Brokers, Liens, Medicaid.
  • 4. Anatomy of a Medical Biller -“TAB” • Time Urgency/Impatience • Free-Floating Hostility or Aggressiveness • Competitive - Strong Achievement Orientation • Physical Attributes * Facial Tension (Tight Lips, Clenched Jaw, Etc.) * Tongue Clicking or Teeth Grinding * Dark Circles Under Eyes * Facial Sweating (On Forehead or Upper Lip) Hypertension, Heart Disease, Job Stress, Social Isolation
  • 5. Anatomy of a Marketer -“TBB” Hangovers, Gym-related Injuries, Plastic Surgery Scars • High energy “schmoozer” • Center of attention • Partier - “good time” working • Short attention span • Last minute response - deadlines • Physical Attributes * “Laid back” - relaxed physique * Rapid talking, aggressive hand gestures * Wide eyed -”deer in the headlights” gaze * Vain - unable to pass mirrors without pausing
  • 7. Ahhh - but without Billing - There’s no Marketing $$$
  • 9. Marketing: •Identifying new referral sources •Building Relationships •Clinical Education •Problem Solving •Payor Contracting
  • 10. Marketing: • Resolving Patient Complaints • Calming referring physician offices tired of getting endless phone calls about auth numbers • Talking to referring physicians about uninsured patients . . .and now there’s PECOS!
  • 11. “Not our Fault. Billers need data to do our job!”  Signs and symptoms - ICD-9 codes  Retro-active pre-certifications  Medicare limited coverage  PECOS = no payment
  • 12. A more realistic picture
  • 13. Honey or Stings • Marketing defender of the customer • They have MANY choices: – Referrals follow the path of less resistance – Front office staff - decision maker • How much work do they need to do to get the radiologist paid? • Why can’t billers just be nice? You’re costing us business…
  • 14. “Maybe it’s business we need to lose?” • Billing’s writing off bad debts from the same referrers month after month. • Any chance some other practice fired them and that’s why they’re referring to us now?
  • 15. • Billing types love numbers – Why not share?  – Marketers focus on scan volume • Show us who the deadbeats are: – Contracts / Physician Referrers   Let turn this problem into an opportunity! What can you give us? How about some Feedback?
  • 16. How about a financial scorecard? • Contractors that aren’t paying – brokers, over-reads, group accounts • Referring Physicians – Payor mix, net-collection ratio, bad-debt – Evaluate by $$ instead of volume • Maybe - we can work together to improve revenues?
  • 17. Financial Score Card Rad Practice A/R Scorecard W/O Liens Liens Only Dr. Deadbeat Adjusted Collection Percentage 98% 50% 25% Days Charges in Accounts Receivable 46 120 175 Total Write-offs as a Percentage of Gross Charges 1.5% 10% 20% Total Write-offs as a Percentage of Adjusted Charges 24% 50% 75% Bad Debt Recovery as a Percentage of Collection Agency Write-offs 6% 3% 1.5% Accounts Receivable Aging Percentage Over 120 Days 22% 50% 65% Dr. Deadbeat refers 25% of the Liens to Rad Practice He ONLY refers Liens
  • 18. Let’s talk about - Orthopedic Quack -“Dr. Slippenfall” • Sends 50 MRI/month – PI & WC Liens – Single source law practice • 2 years = 2% paid – $1,200/MR = $1,440,000 in charges – $28,800 in collections – $24/MR
  • 19. “What about his partners?” Drs. Peepeeo & Sea M S • Another 50 MRI’s/month • L-Spine - $445/Medicare = $1,068,000 over same 2-year period
  • 20. Visit Dr. Slippenfall’s office • LCD Education • Are there additional referrals from non-lien payor sources? • Is he getting paid on Liens? • Meet with Attorney to discuss cases: – Are we writing off too soon? – Is there a better way to work together?
  • 21. Liens as “Good” Business… Treat Attorney like a Payor • Set expectation over annual return • Bad debt ratio threshold • Flexibility to negotiate one-offs • Settlement maze
  • 22. • Lien Fee Schedule: $1200 = $1800 – Attorney’s like high charges – Settlement nets greater reimbursement • Communicate minimum $$$ needs to Attorney • Billing - general guidelines for settling • Why wouldn’t you wait 2 years for 3x the reimbursement? – Or sell the paper… – Except for I. Wanadiscount, Esquire Making Liens Make Sense
  • 23. You sent Dr Jones’ PA to Collections! • No routine write offs for any patient group • Professional courtesy should be eradicated from billing system • Case-by-Case Paper trail - Imarn called / issued one-time only adjustment for specific financial status.
  • 24. What about some customer service training for the billing staff? • Do they know? – Payors & referring physicians are customers. – Physician office staff steer patients to our services. – Our future relies on continued referrals and positive patient experiences. • Include Billing in customer satisfaction surveys
  • 25. Dr. Fay Nancial Hardship “Help me with my cash patients & You’ll get my PPO patients.” 30% off 3x Medicare fee schedule = $935 Not affordable.
  • 26. Cash Rates If an Imaging Center is advertising under the 100% allowable fee then it is a violation of the MFC- "Most Favored Nations Clause.” 
  • 27. " In May 2000, …the OIG pointed out that the exclusionary rule is "not a blanket prohibition on discounts to private pay customers.”…. " Thus, the OIG explains, "a provider need not even worry about section 1128(b)(6)(A), unless it is discounting close to half of its non-Medicare/Medicaid business." Thomas W. Greeson Reed Smith LLC June 18, 2010 RBMA Practice Management Forum
  • 28.
  • 29. Dr. Older Dan Dirt keeps ordering R/O Herniated Disc Not a valid diagnosis Billers need signs & symptoms
  • 30. •Cpt codes lists •ICD-9 cheat sheet •Ordering Guidelines •Laminated Physician Education…
  • 31. Dr. Precerts Office Complaints about Billing • Calling 12x a day for patient auth #s – Interrupting their Workflow • It’s too much work to get Blue Cross auths – “Why do I have to pay someone $30,000 just to get the radiologist paid?” – “That company LonePhone will do the auths for us…. we’ll just send through them.” What can we do?
  • 32. What can we do? • Meet with Dr. Precert’s office manager – Fax list of patients missing auths daily – “Assist” them with Blue Cross auths – Offer assistance with other payors • Establish workflow protocols • Set reasonable expectations – Benefits of direct working relationship
  • 33. OIG Advisory Opinion 10-04 addresses a proposal by several imaging providers to offer free insurance pre-authorization services to patients and physicians.  “The OIG concluded that while Proposed Arrangement could potentially… ‘violate’ the anti-kickback statute, the OIG would not impose sanctions in connection with the arrangement.” http://www.oig.hhs.gov/fraud/docs/advisoryopinions/2010/AdvOpn10-04.pdf. “The call center has to say it is calling on behalf of the imaging center, not the referring physician.” Thomas W. Greeson Reed Smith LLP May 6 2010 RBMA Practice Management Forum
  • 34. Medicaid, Capitation, State-funded $40 Mammo programs and other notoriously low payors Great Volume - Low Reimbursement Good for Marketers bonus - scan volume Bad for billers bonus - collections