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Internal Collection Agency Startup and ImplementationToday's emergency medicine billing environment often
requires an all encompassing approach to proper collection of medical provider fees.
Often, recovery of unpaid medical bills is farmed out to an external collection agency
when it could be more efficiently handled by an in-house team. The benefits of starting
an internal collection agency include the following:
- Improved Collections
- Reduced costs of collections
- Improved Net Unit Yield (NUY)
- Management information feedback to front end of billing systems for process improvements and reduced AR days with increased cash flow
- Control over representation of the practice with the patients
BSA Healthcare will assist large emergency medicine physician groups running
internal billing companies, and external emergency medicine billing companies in the establishment
and day-to-day operation of an internal collection agency. The three-phase project will begin with
a feasibility study and will culminate in an internally managed collection agency.
Projected Work Plan: Phases One - Three
Phase One: Feasibility Analysis
Phase One includes the following:
- Review individual contracts between the client and each external Collection Agency (CA)
- Review/Analyze CA performance from CA system generated reports
- Review history/pattern of CA placements and payments received
- Review bad debt policies and internal processes for bad debt placements to CA
- Possible site visits to each CA to review their campaign protocols and procedures
- Develop Net Unit Yield (NUY) from each CA to use as a performance benchmark
- Quantify viability of developing an internal CA
- Develop proforma budget for starting operations
- Determine viability to proceed to Phase Two
Phase Two: Startup and Implementation
Phase Two includes the following:
- Identify location for CA
- Recruit/hire Director for CA
- Evaluate software for CA
- Determine/write CA Policy and Procedure ( P&P) manuals including campaign protocols
- Start licensure procedures for each required state
- Recruit/hire initial staff (collectors and administrative)
- Train staff on requirements for:
- FDCPA (Fair Debt Collections Practices Act)
- FCRA (Fair Credit Reporting Act)
- HIPPA
- P&P manuals
- Develop transition plan for facilities
- Initiate transition plan at 2 to 3 facilities
- Monitor systems/results at 2 to 3 months to refine/correct where needed
- Benchmark against former CA to validate moving forward
- Start full transition plan implementation
Phase Three: Account Migration
Phase Three includes the following:
- Monitor transition process to internal collection agency
- Review performance parameters of internal agency
- Provide oversight management of internal agency operations to achieve targeted objectives
- Testing compliance to P&P manuals and regulatory requirements
BSA Healthcare Services
EMERGENCY MEDICINE & PHYSICIAN SPECIALTY SERVICES
| HOSPITAL SERVICES
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