Page 14 - SFHN JUNE 2020 FLIP BOOK

Steps for How Healthcare Organizations

Can Maximize Cash Flow During COVID-19

With revenues declining and costs operations, collections of those egy for aged accounts receivables in the
increasing because of COVID-19, cash is receivables may prove challeng- 60 to 90-day bucket.
in short supply. Thus, it is important ing. 6. Conduct a team effort to resolve
healthcare organizations take steps now 3. Operational Sustainability unbilled accounts greater than 10 days.
to conserve cash to deal with immediate Challenges: Cash flow chal- This number can vary and be reduced
demands, as well as to secure future lenges do not automatically ren- further to ensure timely billing, particu-
financial health and sustainability. der obligations null and void— larly Discharges Not Final Coded
Maximizing cash flow at this critical vendors still expect to be paid (DNFC) and Discharges Not Final Billed
time is a priority. A targeted effort for products and services ren- (DNFB).
focused on cash acceleration and conser- dered on a timely basis. 7. Enforce adherence to charge capture
vation and a rigorous revenue cycle opti- Mortgages or rental payments, and reconciliation policies and manage
mization plan can help organizations get salaries (even if to a skeletal late charges.
through this period of severe financial BY RICHARD WALKER AND VENSON WALLIN staff), utilities, insurance and 8. Hold medical staff accountable to
strain. other regular expenses continue complete deficient medical records,
to be due and payable on a reg- respond to documentation queries and
Three Pandemic-Driven practices were closed or significantly cur- ular basis even if operations conduct peer-to-peer reviews to facilitate
Pressure Points on tailed and may be at considerably low lev- have been temporarily halted. The organ- timely billing.
Organizational Cash Flow els. ization may likely face a situation where 9. Consider incentive programs for
2. Patient Pay Management: Collecting cash demands exceed cash sources. Patient Access and Business Office staff
1. Patient Volume Decreases: COVID- on patient-pay accounts (i.e., co-insur- To navigate these pressure points, to improve collections.
19 has necessitated stay-at-home man- ance, deductibles, etc.) may become more healthcare organizations must take
dates and as a result, many states have challenging as unemployment rates con- action to conserve and maximize cash Securing Your Patient Revenues
placed bans on elective surgeries. Some, tinue to rise. With reduced household flow, optimize their revenue cycles and Patient receivables are going to soar,
however, have begun phasing elective sur- incomes, families may be forced to priori- secure their patient revenues to the best and hospitals and medical groups will
geries back in, but have experienced sig- tize mortgage or rental payments and of their ability: have to find solutions to collect pay-
nificant blows to their cash flow in the other daily necessities, with medical bills ments in a compassionate manner.
interim, with some seeing no new visits falling further down the priority list. Conserving and Healthcare organizations will have to
during the crisis. As a result, cash flow in Though some providers may have Maximizing Cash Flow adopt software solutions that can model
many cases is completely dependent on accounts receivable from services per- 1. As needed, secure availability of line and create individual financial plans for
the accounts receivable generated before formed prior to closure or scaling back of of credit (LOC) capacity with primary patients based on economic need.
and/or secondary lenders. Financial assistance plans and policies
2. Delay or suspend non-strategic, that provide discounts based on federal
non-priority capital projects as possible. poverty guidelines may not go far
3. Negotiate with vendors and contrac-
Holy Cross Hospital Participates tors an extension of normal accounts enough. The software solutions calculate
the out-of-pocket price that patients can
payable (AP) cycle anywhere between 30 afford. The idea is that if the discounts
in Expanded Access Program to to 45 days, based on long-standing rela- and the amount of financial assistance is
tionships and credit worthiness some focused precisely on patient’s economic
Use Convalescent Plasma organizations may be able to negotiate situation and affordability, chances are
90-day extensions. that they will pay in full. These advanced
4. Evaluate financial risks associated
in Treatment of Covid-19 with both short and long-term financing business technologies can be used as a
standalone or can be seamlessly integrat-
and develop mitigating plans. ed into the practice or hospital patient
Holy Cross Hospital is participating in the U.S. government’s COVID- 5. Consider managing cash and spend financial system. These technologies can
19 Expanded Access Program to collect and provide convalescent plas- by increasing layers of approval for dollar go a long way with identity verification
ma to patients in need across the country. thresholds without necessarily delaying and management, insurance discovery
Plasma from recovered COVID-19 patients contains antibodies that the decision. In addition, reduce the and verification, charity care and finan-
may help fight the virus. High-risk patients or patients in life-threaten- threshold for dual signature authority for cial assistance as well as business intelli-
ing stages battling COVID-19 may improve faster if they receive plasma purchases and contracts across the gence reporting.
from those that have recovered from the virus. organization.
“We are currently enrolling patients in this study to help determine the We Are Here for You
clinical benefit of COVID-19 convalescent plasma,” said Paul Papagni, JD, Optimizing Your Revenue Cycle Our team is available to help you dur-
Executive Director Research for Holy Cross Hospital. “The first step is 1. Confirm that you’re billing correctly ing this increasingly difficult time. We
identifying potential convalescent plasma recipients and communicating for new services (i.e., COVID-19 testing are here to help you in any way possible.
with the patient and family about the process. We then request the conva- and treatment, and telehealth offerings) Please reach out if we can assist and ease
lescent plasma which comes from a donor that has a verified diagnosis of across the organization. your mind. Please stay healthy and safe.
COVID-19 and that has fully recovered. The plasma unit is then transfused 2. Enable automation to drive cash and
at bedside and administered according to our internal procedures.” maintain service levels at lower costs Venson Wallin, CPA, Managing Director,
The current guidelines for plasma donation were developed by the (i.e., cash posting, refund processing, The BDO Center for Healthcare Excellence
American Red Cross in collaboration with the FDA. claims resubmission, claim status, pay- & Innovation, can be reached at
In addition to a verified COVID-19 diagnosis and full recovery, qualified ment variance analyses and productivity (804) 873-0443 or vwallin@bdo.com.
donors must be at least 17 years old, weigh at least 110 lbs. and be in good analyses). Richard Walker, MBA, BSN, Managing
health, even if being treated for a chronic condition. A Red Cross represen- 3. Collaborate with payers to remove Director, The BDO Center for Healthcare
tative follows up with prospective candidates to confirm eligibility. or amend more stringent restrictions, Excellence & Innovation, can be reached at
such as authorizations and filing limita- (615) 493-5646 or rwalker@bdo.com.
For more information about the Expanded Across Program tions, and explore all options to acceler-
for Convalescent Plasma for the Treatment of Patients with ate payment cycles. Contact:
COVID-19 protocol, visit www.uscovidplasma.org. 4. Monitor activity by payer and Alfredo Cepero, Managing Partner
ensure resources are aligned with 305-420-8006/ acepero@bdo.com
changes in payer mix.
5. Aggressively work accounts receiv- Angelo Pirozzi, Partner
able and create a cash acceleration strat- 646-520-2870 / apirozzi@bdo.com

14 June 2020 southfloridahospitalnews.com South Florida Hospital News