Where Do Payers Fit Into Population Health Management?

Where Do Payers Fit Into Population Health Management?Successful population health management is not possible without data. The form that information takes depends on the role being played by a particular player in population health management: provider, patient, or payer.nnWith passage of the Affordable Care Act and the movement toward value-based reimbursement, health plans find themselves facing challenges similar to those of the providers they’re working with in the pursuit of accountable care and population health.nn“The landscape is certainly changing and there are many changes. How payers are interacting with providers really depends on the type of structure they have set up,” says the newly-appointed IDC Health Insights Research Director Deanne Primozic Kasim.nn“In the last two to three years in particular, there have been many developments in terms of providers forming patient centered medical homes and accountable care organizations, not just with Medicare but also with some payers doing their own types of ACO arrangements,” she continues. “That has a different dynamic for the types of data being given to payers and the kinds of reimbursement coming back to providers.”nnThe challenge is made harder by the series of healthcare mergers, acquisitions, and partnerships that have an impact on reimbursement for providers and payers. ” You see these hospital systems just eating up provider practices and as their operations are being integrated there are more billing processes are in place in terms of how these groups now get reimbursed,” adds Primozic Kasim.nnIn looking for guidance in the area of accountable care in particular, Primozic Kasim admits that health plans can look to the approach taken by the Centers for Medicare & Medicaid Services (CMS) in its Medicare Shared Savings Program (MSSP) and Pioneer ACO Model, but that does not necessarily provide real clarification.nnWhere Do Payers Fit Into Population Health Management?“What Medicare has put out there is being used as a guideline, but there is unfortunately not one roadmap,” explains Primozic Kasim. “It is a real challenge for payers in looking at the types of quality metrics they are going to use as different programs pop up, including what they do with the federal government if they choose to play there. There are so many quality metrics that they are challenged to keep up with them.”nnOne thing that is clear to payers is the need to understand individuals as consumers as well as patients where Primozic Kasim sees great potential for improvement.nn“There isn’t one-size-fits-all just like there’s not one type of consumer or patient,” she stresses. “It’s really about trying to reach people by respecting their different healthcare literacy overall, their social use of technology, their access to technology, and what’s going to hit home with them because there are different messages and cultural and demographic concerns as to how to reach people.”nnAccording to the research director, certain payers have a leg up on others in the makeup of their patient populations. “The ones that have more of a target population, such as the Medicaid and Medicare Advantage plans, have an advantage over the larger national plans because their patient population is a lot more focused and more centered geographically as opposed to those plans that are trying to cover everybody in different market segments,” claims Primozic Kasim.nnGetting to know their patient populations is leading payers toward gathering intelligence through business and clinical analytics solutions and services. Given the inchoate of healthcare analytics choosing the right vendor partner or partners is not an easy one.nn“In terms of analytics, there is not one vendor that has a complete, defining market share,” says Primozic Karim. “There are many companies out there doing everything from the backend edge server to some of the more clinical analytics and looking at population health of these exchange populations because clearly setting premiums for this is going to be key to moving forward.”nnFor value to replace volume in healthcare, premiums and reimbursements must be properly configured. Without meaningful insight into the needs of the provider and patient populations, payers will not be able to rise to the requirements of this new era in healthcare.nnSource: www.ehrintelligence.com; Kyle Murphy; April 30, 2014.

Increase Revenue & Remain an Independent Practice – Here’s How!

Why Should a Practice Outsource Their Billing? Do the Math!

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Increase Revenue & Remain an Independent Practice – Here’s How!

nThe cost of setting up and maintaining a billing system, including the necessary staff to properly code, scrub, bill, post payments, and pursue denied claims, is a significant expense for any medical practice.  Add to that expense the cost of employee turnover (and training), employee benefits, annual support and maintenance of computer equipment, the constant need to remain diligent regarding changes in reimbursement and CPT and ICD-9 coding (soon to be ICD-10!), and the necessity of conforming to meaningful use criteria associated with your electronic medical record, and you have a perfect storm brewing that could cost you a bundle!nnDepending on your specialty and volume, estimates from sources including the Medical Group Management Association (MGMA) and other industry experts peg the average expense of internal billing to be 8 to 15% of your collected revenue.nnOutsourcing your billing will range from 6 to 10% of your collected revenue. However, a number of studies have demonstrated that collections typically improve by as much as 5 to 10% when billing is outsourced due to improvements in the rate of denied claims, timely follow-up and appeals for incorrect or no-pay claims, and familiarity and expertise in correct coding in order to maximize reimbursement.  Other intangible benefits of outsourcing include eliminating the administrative hassle of having to manage systems, staff, and expense, which allows you to focus more time and intellect on the practice of medicine.nnA general guide to comparing costs of doing it yourself versus outsourcing, assuming no increase in collected revenue (plug in your own numbers), includes the following:n

Doing it yourself:

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  • A practice of one to three physicians requires a minimum of one and often two full-time equivalent (FTE) staff – cost including salary and benefits – $36,000 to $48,000/FTE/year
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  • Computer hardware and software expense including support and maintenance – $200/provider/month plus $500 for maintenance and support – $5,300/year
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  • Claims processing costs – clearinghouse fees, billing supplies, office space, office equipment – $15,000/year
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  • Total cost per year of internal billing/collections (assuming 2 FTE’s) = $116,300
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  • Assume two physicians collections = $950,000/year
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nTOTAL COST OF INTERNAL BILLING = 12% ($116,300/$950,000)n

Outsourcing:

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  • Staff and software expenses – $10,000/year
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  • Billing service fee assuming no increase in collected revenue – 8% of collected revenue – $76,000
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  • Total cost per year of outsourcing = $86,000
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nTOTAL COST OF OUTSOURCED BILLING = 9% ($86,000/$950,000)nnIncrease in revenue available for physician distribution due to outsourcing = $30,300!!n

Contact Welter Healthcare Partners today for a free billing assessment* and more information on how we can help increase your revenue!

n*limited time offer through April 30, 2014

ICD-10 Delay: Stay the Course With Your Training Efforts!

Stay the Course With Your Training Efforts!This is just a short delay to the industry’s inevitable transition away from the 30 year old ICD-9 to ICD-10.  ICD-10 is coming and Welter Healthcare Partners, Inc. is pulling out all the stops to help our clients prepare for it and be successful.  nnICD-10 is a richer data set allowing for more data to be used and transmitted.  It will absolutely help the industry document care, document what treatments and modality’s work and how well they work.  It will allow providers to better describe their services and why they are necessary.nnICD-10 will also help tremendously as we continue to transition away from a fee-for-service system of reimbursement to a quality and outcomes based reimbursement system like physician centric bundled or episodic payments.nnWe are excited about ICD-10 and the opportunity it will bring to our clients and the industry. We encourage providers, practices, and hospitals to continue training efforts already underway. Determine deficiencies now, as the clinical documentation improvement process and getting your staff proficient with the ICD-10 code set can take time! Take advantage of being ahead of the game! If you haven’t started, we encourage you to do so as this is a huge transition and being completely prepared is the only way to prevent negative impacts on productivity and revenue!n

Need help with an ICD-10 training plan? Contact us today!

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For more information about the delay, click here

Unfortunate Zoo Experience

Fun with ICD-10 - Unfortunate Zoo ExperienceW56.01XA — Bitten by dolphinnnW56.22XA — Struck by orcannW58.13XA — Crushed by crocodilennW61.09XA — Other contact with parrotnnIn preparation for the upcoming deadline for ICD-10 implementation, Welter Healthcare Partners presents weekly ICD-10 Codes of the Week! Our goal is to familiarize you with the new and expanded code set and the additional clinical documentation needed from your providers to comply with ICD-10 coding, and more importantly, for accurate and clean claims submission to keep your revenue stream flowing! We are to help YOU prepare for the October 1, 2015 implementation date. Please don’t hesitate to contact us for all of your training and education needs!

Delay to ICD-10 Billing Coming October 2015

shutterstock_157408235The Senate voted today, (March 31st) to delay the switch to ICD-10 billing codes to October 2015. This is just a short delay to the industry’s inevitable transition away from the 30-year old ICD-9 to ICD-10.  ICD-10 is coming and Welter Healthcare Partners, Inc. is pulling out all the stops to help our clients prepare for it and be successful.nnICD-10 is a richer data set allowing for more data to be used and transmitted.  It will absolutely help the industry document care, document what treatments and modalty’s work and how well they work.  It will allow providers to better describe their services and why they are necessary. ICD-10 will also help tremendously as we continue to transition away from a fee-for-service system of reimbursement to a quality and outcomes based reimbursement system like physician centric bundled or episodic payments. We are excited about ICD-10 and the opportunity it will bring to our clients and the industry.nnWe encourage providers and practices to continue any training efforts already started, as the clinical documentation improvement process and getting your staff proficient with ICD-10 can take time! Take advantage of being ahead of the game! If you haven’t started, we encourage you to do so as this is a huge transition and being fully prepared is the only way to prevent productivity and revenue loss!

Medicare Physician Fee Schedule Update

shutterstock_129185336The 2014 Medicare Physician Fee Schedule (MPFS) final rule stipulated a negative update to the MPFS that was to be effective January 1, 2014. That reduction was averted for three months with the passage of the Pathway for SGR Reform Act of 2013, which provided for a 0.5 percent update for services paid under the MPFS through March 31, 2014.nnCMS is hopeful that there will be congressional action to prevent the negative update from taking effect on April 1, 2014. CMS has instructed the Medicare Administrative Contractors to hold claims containing services paid under the MPFS for the first 10 business days of April (i.e., through April 14, 2014). This hold would only affect MPFS claims with dates of service of April 1, 2014, and later. The hold should have minimal impact on provider cash flow, because under current law, clean electronic claims are not paid any sooner than 14 calendar days (29 days for paper claims) after the date of receipt. All claims for services delivered on or before March 31, 2014, will be processed and paid under normal procedures, regardless of any Congressional actions.