How will the Affordable Care Act Impact Cardiology Practitioners and Their RCM?

Healthcare industry has been undergoing steady reforms over the past couple of years and the changes are expected to continue. The objective of this ongoing transformation is to achieve improved healthcare services with increased focus on quality care. In such a scenario, Affordable Care Act is being viewed as a promising way of improving healthcare and strengthening financial conditions of the industry. However in addition to expansion of coverage, increased accountability of insurance companies, lowering of healthcare costs and enhancement of quality care for Medicare patients; ACA is expected to increase revenue risk for physicians as well. As a shift from fee-for-service to revenue and cost sharing model of ACOs (Accountable Care Organizations), Cardiology practitioners will face a lot of challenges in realigning their revenue cycles.

Some of the major RCM parameters that ACA will affect practitioners are –

• Due to bundling efforts, cardiovascular coding will undergo additional changes

• Medicare fee schedules will change for physicians in addition to the continued threat of reimbursement cuts by 30% due to SGR

• Penalties for non participation in federal incentive programs like EHR, quality reporting system and e-prescribing

• Government and commercial insurers will pay for value based services (pay for performance reimbursement model) instead of continuing with the volume based or fee for service model

• Increased number of Medicare patients to be covered by Cardiology practitioner participating in ACO project, meaning more financial risk and heightened burden on RCM

With rising focus on quality care and expected collaboration between hospitals and independent medical practitioners under ACA, to cut down costs and enhance care coverage, Cardiologists will have to adapt their practices and RCM as per the imminent changes.

 RCM or Revenue Cycle Management is the strength of any medical practice aiming to stay financially viable. RCM cannot afford to stagnate in its processes as the healthcare environment is changing on a continual basis. With industry changes, RCM of a Cardiology Practice must transform to better suit the needs of the practice. Given a high likelihood of ACO participation by most Cardiology Practices, some well planned changes in RCM can prepare a practice to absorb heightened risk and derive better revenue from ACO –

• Compliance to changing regulations and participation in federal programs designed to incentivize practice performance can save your practice a lot of future costs and penalties. Thus RCM of your Cardiology practice must comply with new regulations and keep your practice up to date

• Change in fee schedules and expected reduced reimbursements by Medicare would mean diminished revenues. Thus focus of your RCM must be to diversify the payers mix to absorb this inevitable decline in revenue

• Coding and billing changes due to bundling must be tracked and updated in your system to avoid any claim denial or audit complications

• RCM must strive to adopt value based reimbursement model for your practice and gradually shift away from fee for service payment model

As RCM and billing experts, delivering optimum medical billing and coding services across all 50 US States, medicalbillersandcoders.com can help add value to your revenue model and save you tremendous costs and expenses. Your Cardiology Practice can benefit from our billing and coding experts help and our accurate revenue cycle management can transform a high risk ACO project into a high return venture for you.

Payment Posting – Key to revenue cycle management

Payment posting is one of the most important steps that can assist in improving a physician’s revenue if done efficiently. Although payment posting is becoming electronic and automated there is still the need for checking for accuracy and errors in the posting. There are numerous ways in which physicians can benefit from accurate and efficient payment posting and its analysis.

Explanation of Benefits (EOB)

The ability to carefully read and comprehend the EOB is one of the crucial aspects of medical payment posting. Avoiding errors in EOB or correcting the errors made by an insurance payer can lead to avoidance of long term financial loss. Studying and minutely examining the EOB for correct information such as the claim number, provider, type of service, the not covered amount, and insured ID number can drastically reduce mistakes and ensure that you are properly remunerated.

Electronic Remittance Advice (ERA)

ERA is provided by most insurance providers and is an electronic form of EOB or explanation of benefits. This helps in increasing your productivity and streamlining your workflow and can be integrated to your PMS. However, facts about underpayments, denials, multiple adjustments, cross-over’s, reversals, and secondary remittance have to be analyzed in order to ensure correct reimbursement in a timely manner.

Insurance Follow up

Correct payment posting also supports insurance follow up which ensures optimal revenues for physicians. Insurance companies can deny claims based on any type of error and it is important for billers and coders to keep in touch with such providers in order to ensure that the issue is being addressed. Therefore accurate payment posting can eliminate such delay in denied claims by avoiding errors. Payment posting sets the stage for effective Account Receivables follow up.

Reduce costs and tool to measure efficiency

The cost of billing can be reduced along with an increase in revenue due to better payment posting processes. The reduction in cost is also due to the time saved by electronically done payment posting which is verified by experienced billers and coders. Moreover Payment Posting is a key tool to measure the efficiency of Medical Billers and Coders as it stands testimony to clean claims and error free billing.

Quantitative advantages

The recent health reform is going to ensure more doctor-patient encounters and the sheer volume of EOB and the amount of posting would become staggering. This is where attention to detail while reading EOBs and familiarity and experience in advanced electronic remittance scenarios is important. Balancing receivables by accurate and timely Payment Posting, makes performance reports more clear and concise to draw financial decisions.

EOB or ERA, the human intervention in the analysis is inevitable; the best computing system cannot drive efficiency in collection all by them. Expert medical billers are required to scrutinize those customized reports. Medical Billing specialists at medicalbillersandcoders.com are experienced in such scenarios and keep updated about payment posting processes and also all other adjustment clauses in the reimbursement policy.

For more information visit:- Medical Billing Nashville, Medical Billing New York City, Medical Billing Seattle