It's that time of year again. Budget planning for the next year is always time consuming, but can be exciting and a chance to set new goals for your team. As you begin your process here are several things to consider when working on your projected revenue.
Many healthcare providers spend more resources and time on collections rather than implementing best practices at the start of the revenue management cycle. The skilled nursing facility (SNF)’s annual bad debt expense should be less than 1% of its net revenue.
The best way to ensure the business office is minimizing billing and collection issues is to be proactive and ensure that insurance and demographic information (birthdate, Social Security number, etc.) is correct.
To help prepare for survey readiness, it is crucial that you regularly audit your facility practices. Many audits can be scheduled routinely, but in all cases, these audits should be performed no later than when the survey window begins. These self-audits help create the survey readiness mode for staff, as auditing creates potential opportunities for improvement through the Quality Assurance and Process Improvement (QAPI) program (determining root causes with Plan of Correction implementation). In fact, the primary source of identification of audits required often comes out of the QA/QAPI program.
Since its initial inception as part of Section 6106 of the Affordable Care Act, the payroll-based journal (PBJ) requirement, which took effect July 1, 2017, has caused long-term care providers several growing pains as the CMS reporting mandate competes with facilities’ many other priorities. Prior to its implementation, in October 2015 CMS launched a voluntary phase of the PBJ reporting system, allowing providers to test their submission process. Few providers participated in the trial run, however, possibly because they were uncertain where their information would end up—or because they were hoping the government program would be postponed.
It’s been said that Rome wasn’t built in a day, which is an archaic way of saying: Be patient, good things are coming. As the Centers for Medicare & Medicaid Services (CMS) navigate what some may consider to be healthcare’s own modern-day Roman empire¾a system undergoing serious revisions including how levels of care are monitored, the way reimbursement is divided, and the anything-but-straight-and-narrow shift from volume to value¾SNF providers are participating in history being made. On Monday, July 31, with the publication of a multi-faceted final rule, Rome’s grand plans just got a little grander¾but experts wonder if its tight budget will be enough to cover renovations.