Ask MGMA: Optimizing Accounts Receivable with an Effective Central Billing Office
Download MP3Accounts receivable management is the backbone of a healthcare practice’s financial health, and a well-run central billing office (CBO) can make all the difference. In this episode of Ask MGMA, host Daniel Williams speaks with MGMA expert Cristy Good about best practices for structuring and optimizing a CBO, including staffing, technology, training, and audits to improve efficiency and reduce claim denials.
Key Takeaways:
- Assessing Claim Volume and Staffing Needs – Analyze historical data to determine the appropriate size and structure for your CBO.
- Leveraging Technology – Integrated billing and coding software can streamline claims processing and reduce errors.
- Training and Pre-Submission Scrubbing – Regular training and a strong pre-submission review process help prevent costly claim denials.
- Conducting Regular Audits – Internal and external audits ensure coding accuracy and compliance with payer requirements.
- Improving Patient Communication – Clear financial policies and upfront conversations reduce misunderstandings and improve collections.
- Flexible Staffing and Outsourcing – Adjusting staffing during high-volume periods and outsourcing specialty coding can help maintain efficiency.
Key Performance Indicators (KPIs) to Monitor:
- Days Sales Outstanding (DSO) – Measures the time it takes to collect payment.
- Average Days Delinquent (ADD) – Tracks overdue payments and potential staffing gaps.
- Accounts Receivable Turnover Ratio (ART) – Evaluates efficiency in converting receivables into cash.
- Collection Effectiveness Index (CEI) – Assesses the overall success of the collections process.
- Initial Denial Rate – Helps identify inefficiencies in claim submission.
- Staff Productivity – Measures the number of claims processed per staff member.
Resources:
- For more information and support on effective KPI tracking and optimization, visit MGMA.com and explore our wide range of resources, including these resources:
- MGMA DataDive: A comprehensive benchmarking tool that provides detailed metrics on network utilization, enabling practices to compare their performance against industry standards.
- Even Better Data, Better Decisions: Advanced Business Intelligence for Medical Practices: This book offers techniques to integrate data for actionable insights, enhancing efficiency, profitability, and adaptability in medical practices while improving patient care.
- Ask an Advisor: For personalized guidance, practices can reach out via email at advisor@mgma.com to connect with MGMA experts.
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Inflation is squeezing medical practice budgets, but as the exclusive GPO of MGMA members, we can help your practice save up to 20% on medical and non-medical supplies without sacrificing quality. MGMA BestPrice is your secret weapon to combat rising costs, maintain margins and deliver exceptional patient care. It is a FREE member benefit leveraging HealthTrust’s contract portfolio to connect you with the most aggressive pricing in the industry for medical and surgical supplies, pharmaceuticals, vaccines and purchased services. Visit mgmabestprice.org today to learn how MGMA BestPrice can help your medical practice save money on supplies you already buy
