Correct Priorities Boost Collections

BPO--TRAC
Correct Priorities Boost Collections
If you incorrectly assign collection function priorities, you waste money.
Collections staff sometimes believe everything they do carries the same priority. They think sending statements is as important as making collection calls to patients. That fixing data entry errors is just as important as verifying coverage on a new patient.
Collection priorities are sometimes based on the loudest complaints, on what the staff enjoy doing or on what makes patients happy. None of these are the right priorities.
Collection priorities must be based on one question: How can we collect the most amount of money with the least amount of time and effort? In other words, as long as we stick to the rules, how can we bring in the most cash?
Your collections department collects the most money possible when they know the correct priorities for each of their functions. Use this list of priorities to sort this out with your collections personnel.
Collection Department Priorities
1. Vital daily actions: patient financial arrangements, insurance verification and authorization, data entry, billings/statements submitted or mailed.
2. Collections from patients over the counter: cash, co-payments and deductibles.
3. New patient data entered.
4. Initial reports, statements or billings on new patients.
5. Insurance queries answered.
6. Highest fee sources called to check on payments (such as indemnity insurance calls).
7. Medium fee sources called to check on payments.
8. Lower fee sources called to check on payments (such as managed care calls).
10. Dispute denials and reductions, resubmit claims.
11. Past due patient statements and patient collection calls.
12. Fixing account mistakes.
13. Sending cash accounts to collections.
14. Straightening out and collecting on old accounts.
15. Legal actions against insurance companies.
16. Everything else.
Additional activities that increase income should be added toward the top of the list and carry higher priority. Activities that do not increase the income, but need to be done anyway have lower priority.