revpay - white paper and sales solution introductory slide deck

A NEW SOLUTION TO STOP THE STRUGGLEWITH HEALTHCARE’S GROWING PROBLEM

© 2011 REVPAY ADVISOR, LLC

Jeffrey Lea, CEO, RevPay, LLC

Most healthcare businesses and providers strugglewith management of insurance-adjudicated andpatient-pay receivables because they lack both thefinancial and human resources to pursue the highvolume of small-balance accounts on their ledgers.

In turn, the patients who owe these balances areoften frustrated in their efforts to understand thecomplexities of the payer system and what theythemselves actually owe for the care they’vereceived. As a result, these accounts often pushout 120 days or greater, and providers end uppaying fees ranging from 25 – 35 percent of past-due receivables’ value to collection agencies as asolution of last resort for account reconciliation.

Optimizing your accounts receivable managementand patient communications systems candramatically improve the efficiency of youroperations, improve patient satisfaction with theservices your organization provides, andsignificantly impact your bottom line by reducingboth bad debt and time to collect on patient- payand patient insured accounts.

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IMPROVING PATIENT-PAY ACCOUNTS COLLECTION


Health Care Finance News summarized thereport’s findings with the following statement:

Traditional healthcare billing models are designedwith economies of scale in mind to collect fromhistorically “best” payers- insurance companies andgovernment programs - and to prioritize efforts andresources to collect larger patient-pay balances.

The constraints of such systems have a dual effectof shifting focus of after-care support services fromthe patient to the payer groups, and of sub-optimizing collection efforts on larger volumes ofsmall-balance accounts.

As a result of both changes in the regulatoryenvironment and skyrocketing unemployment, thepopulation of patient-insured patients is trendinghigher at an unparalleled rate.

In 2007, an estimated 25 million people betweenages 19 and 64 lacked adequate insurance - a60 percent increase since 2003.1

Consequently, effective management patient-payaccount receivables is becoming tantamount tosurvival in today’s hyper-competitive U.S. healthcare market.

In a June 2008 report published by Health CareFinance News, 94 percent of the U.S. healthcare

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financial and operations officers surveyedidentified improving patient-pay collections as atop priority, and 43 percent said patient-payaccounts receivable were growing faster thantheir organization’s billing function could handle.2

A Growing Problemfor the Healthcare Industry

of CFOs and COOs identify

improving patient-pay

collections

as a top priority

say patient-pay accounts

receivable were growing

faster than their

organization could handle


An ultimate goal of all healthcare provider groups,of course, should be to operate effective, efficientbilling systems that enable timely and clearcommunications with patients.

Provider organizations that successfully effectsuch change today are realizing powerful benefitsthat deliver significant competitive advantage inthe market, including:

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• 15 – 30 percent increase incollection of patient-pay accounts aged less than 90 days

• Up to 50 percent reduction ofbad debt on patient-pay balancesless than $500

• Dramatically improved data,reporting, and tools to managepatient-pay collections

• Increased patient satisfactionwith services

• Increased productivity of billingdepartment staff and job satisfaction

So why have most healthcareorganizations failed to achievethis goal and realize such gains?

The answer is self-evident and clear: theseorganizations lack time, money, or expertise todo so.

Optimizing your billing function to deliver intoday’s and tomorrow’s - more patient-centricenvironment requires more than just increasedfocus on an under served segment of the payerpopulation.

It requires a solution that augments the capabilitiesof existing billing staff, makes it easier for patientsto settle patient-pay balances sooner, and does soin a way that delivers significant return on yourinvestment in driving this change.

Successful transformations will take into accountthe unique needs of patient-pay and patient-insured payers; the cost of new technologies;training and education needs of staff; and thecost and burden of ensuring systems compliancewith a dynamic regulatory environment.

Increasingly, provider groups are turning outsidetheir own internal billing and IT organizations forhelp addressing this challenge- often withdramatically successful result that goes straightto the bottom line.


To answer the Healthcare industry’s call for asolution to the growing patient-pay collectionsproblem, RevPay Advisor has created a uniqueset of web-based outbound patient communi-cation and process automation technologies toaccelerate collection and resolution of patient-pay accounts.

By automating much of the notification andcollections process for providers, RevPayAdvisor can reduce collections costs by 50percent or more compared to live-call anddirect-mailing collections models.

Consider the chart to the right. As it illustrates,the typical medical billing office collects only 25percent of patient-pay accounts valued $500 orless in the first 90 days A/R. This number jumpsroughly another 35 percent in the next 90 days,after which time the remainder of thesereceivables are sent to collection agencies for

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• Automate and manage patient messagingcampaigns via plug-and-play web interface

• Proactively engage patient-pay accountguarantors using a variety and mix of media,including voice, text, and email messaging

• Efficiently pursue collections across the fullspectrum of large to small balance A/R

resolution. In the end, almost a third of all smaller-balance patient-pay receivables are written off as“not worth” the effort or cost to pursue, and both thisrevenue and sometimes even the patientsthemselves are lost to the practice consequent tothe unpaid bill for care.

Optimizing your collections model with RevPayAdvisor by enabling providers to contact morepatients earlier in the collections cycle, and bymaking it both easy and convenient for thesepatients to pay via automated system or transfer toa live agent, RevPay Advisor can double 90-daypatient-pay collections rates, and cut patient-paybad debt in half.

Resolution of Patient-Pay A/R (Balances <$500) 5

Typical Model

*5% Agency Fee in Typical Model. Only 2% withRevPay Advisor, if accounts are sent to collections


Features of RevPay Advisor:

References1. “Strategies for Reducing Bad Debt,” Healthcare Financial Management, January 2009.

2. “Collectability of Self-Pay Accounts has Health Care Execs Worried,” Insight on Accounts ReceivablesManagement, June 16, 2008.

3. “Collectability of Self-Pay Accounts has Health Care Execs Worried,” Insight on Accounts ReceivablesManagement, June 16, 2008.

4. “The Impact of an Outbound Call System on Agent Productivity,” First Research, May 2009.

5. “Practice Perspectives on Patient Payments (Appendix A1),” MGMA Connection, April 2010.

On average, a mailed reminder letter costs aprovider between $0.40 and $3.00 depending onthe volume of letters it produces. Attempting toreach patients live by phone is even moreexpensive: across the U.S., placing a single livecall to a patient costs providers more than $5.80.

Now, for less than the cost of a single letter andphone call to patients, providers can enjoy thefull compliment of RevPay Advisor’s suite ofservices and solutions, with much greater result.

Optimizing your billing department’s patient-pay accounts receivable collection model withRevPay Advisor is easier than it may seem.

Start by contacting RevPay Advisorat 1-(888) RevPay 1 or by visiting us online atwww.revpayadvisor.com to learn more.

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For more than 35 years, the leadershipteam at RevPay Advisor LLC hasdelivered business process solutions forhospitals and physician group practicesacross the country.

RevPay Advisor, LLC22942 Cleveland Drive, Ste 100Parker, CO 80138


revpay - white paper and sales solution introductory slide deck

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