Reimbursement is one of the biggest challenges that health care entities face in 2015. Generally, these facilities seek payment from a variety of sources, ranging from individual patients to insurance providers and government subsidies. According to a new report by the Virginia Hospital and Healthcare Association, organizations in the state have suffered as a result of reimbursement failures. This drives up debt and makes it harder for hospitals, care facilities, clinics and medical centers to make ends meet.
"In 2012, Virginia hospitals provided over $600 million in charity care; absorbed shortfalls of $339 million in Medicaid services and $578 million in Medicare services because reimbursements do not cover the full cost of care; and incurred $454 million in bad debt expenses," states the report.
Because the consequences of falling behind in the revenue cycle are so dire, many experts say this is an environment in which organizations either sink or swim. Those that swim adopt revenue cycle management techniques that maintain a steady influx of income through detailed billing and collections. For many organizations, the best way to tackle this objective is to outsource receivables management.
Tightening budgets can only go so far to boost the revenue cycle's viability. Organization decision makers also need to be proactive about improving the rate of successful collections to ensure the operation can continue to run efficiently. Despite massive changes to the industry, dynamic leadership and a patient-centric approach can help improve the state of hospital finance.
Contact Professional Medical Services today to learn more about how our solutions can reduce the backlog of outstanding claims at your facility. This allows collections professionals to pursue high-priority cases.