Archive for the ‘Uncategorized’ Category

Coding Audits Thoughts for the Audit-Haters

Tuesday, March 2nd, 2010

The word “audit” has a strong negative connotation, doesn’t it? Who wants to be audited? Visions of the IRS invading our home or business and fining the stuffing out of us come to mind. We also associate audits with the following:

• Disruption to normal work flow and processes
• Punishment and judgment
• Being nitpicked
• Being “found out” whether it be incompetence, criminal intent or a simple mistake

Even though coding audits are very helpful and, I would contend, necessary, it is often hard to sell them to your staff, doctors and even management. When it comes to medical coding audits, even very competent, ethical and meticulous coders can associate audits with reprimands, questioning their ability or ethics or even potential job loss. Doctors can grow cold on audits if they think it means that they have to change. Administrators can stress over audits as just one more think they have to do.

It doesn’t have to be this way.

First, let’s talk about the benefits of doing a coding audit and then we can delve into how to sell it.

The benefits of coding audits are straightforward.

1. If you are not coding correctly for Medicare and Medicaid, you could be liable for large monetary penalties and even jail time. The stakes are high. One rad group paid a $7 million dollar settlement. You can avoid this with an audit.
2. You could be leaving money on the table. One coding expert and auditor, Stacie Buck with RadRX (www.radrx.com), estimates that in her experience of doing audits, 40% of interventional and 10%-20% of diagnostic procedures are coded incorrectly. She added that most of the time she finds more money for clients than loses money.
3. If you are getting denials due to incorrect coding, it can increase your cash flow by coding it correctly the first time.

So assuming you think it is a good idea, here are some ways you can sell it to your billers, doctors or administrators.

1. Stress the positive. Stress that it can help us make more money while doing a better job for our providers, payers and patients. Stress that it is preventative so that problems are caught early before they become serious.
2. Start small. Many auditors like Stacie Buck offer small mini-audits. Some of these audits can be nearly painless and are often free. If you see problems in a small sample, you probably have problems in a large sample. If you don’t see any issues, you may want to wait a while and do another small, sample audit. These small audits are less disruptive and less intimidating.
3. Get people used to auditing by doing both internal as well as external audits. If people are used to being audited internally, it won’t come as such a shock when an external audit occurs. Most experts will recommend an external audit of at least once per year.

Good luck with your audits and remember, as Stacie Buck is oft saying, “An ounce of prevention is worth a pound of cure.”

How Teleradiology Will Change the Radiology World

Friday, February 5th, 2010

Teleradiology has the power to drastically change the face of imaging as we know it beyond the changes it has already effected. Let’s look at the dynamic.

The first major dynamic at play is looking at it from the perspective of telerad providers. We have the corporate teleradiology providers. These are characterized by full time teleradiologists. If we can generalize, the mission of these organizations is to create a company whose primary mission is make money by providing telerad services. On the other end of the spectrum is the local radiology group. While they are also seeking a profit, often they are trying to supplement their practice by maximizing the number of studies they are doing. If their local hospital requires them to have someone on call during the evenings, instead of being interrupted from time to time with reads, make it a full night by supplementing with telerad reads.

These two scenarios bring interesting dynamics to the marketplace. First, the corporate telerad providers should be able to bring the benefits of size and technological innovations. The local rad groups should be able to provide their services on a more cost effective basis. Who will win this battle? Large corporations with their marketing power and deep pockets? Local rad groups who should be able to provide comparable services for less?

The second dynamic to watch is how the hospitals leverage the telerad services. Telerad has the potential to reduce radiology to a commodity service. One telerad company has already created an eBay like service where you can bid on telerad deals in an auction environment. If that doesn’t scream commoditization, I don’t know what does. Local rad groups should lose power in their negotiations with hospitals as hospitals now have the alternative to put the contract for reading services out in the general marketplace if they desire. Groups will have to make sure that they keep on good terms with the hospital and provide great service. Will the local rad group sequestered in a local hospital reading room soon to become a quaint thing of the past? For a time the big question was were all these jobs going to go overseas, but that question seems to be settled for the time being. The commoditization will happen here at home, not abroad.

The third dynamic to keep an eye on is how telerad will change the pricing of radiology services. Will increased competition and commoditization force prices down? Radiology is one of the few hospital specialties that can be practiced in this manner. Surgeons can’t as yet perform surgery in Texas from Illinois. You can send a pap smear to a lab, but still there are practical limits as to how far you can send it. Couple this with healthcare reform and we could have the perfect storm for plummeting reimbursements in radiology.

Whether or not you are a radiologist or a telerad company, this new dynamic will impact everyone in radiology. It is definitely worth keeping an eye on. If you want to share what you have seen in the market already, please make a comment.

Until next time….

The Link Between Employment and Healthcare Reform

Thursday, January 28th, 2010

President Obama delivered his State of the Union address last night. He talked about two areas which have been headlines for months and the center of public debate – healthcare reform and unemployment. I would like to suggest that the two are closely related.

Most jobs are created by small business. Whether it is a mom and pop store or an internet startup, the jobs are coming from some man or woman who has more than likely best most of what they have on a business idea with the hopes of growing it into something of value for themselves and their families. Most of these businesses don’t have the economies of scale to get the same pricing on items as a Wal-Mart, Apple or Citicorp. Money is tight already and things cost more for small business.

Healthcare is no exception. It is very expensive for a small business to offer healthcare. There are only a few options. 1. Don’t offer healthcare as a benefit. 2. Offer a small offset to the cost with the rest of the burden on the employee. 3. Suck it up and spend the money for your employee’s healthcare. Most small businesses just can’t do #3 and survive, so it is normally options #1 or #2.

I pay $922 a month for health insurance. I have a family of four. We are as healthy as can be. We don’t smoke. We are not overweight. We don’t have any serious preexisting conditions. $922 a month!

Now, here is the interesting part. I have to pay for my own health insurance. Who pays for everyone else’s health insurance? Let me suggest to you that it is ME!

• Over 50% of the working people in the US work for some form of the government (teachers, soldiers, federal, state, local government agencies, etc.). They all have health insurance. Who pays for it in taxes? Me!
• All of our seniors have Medicare. This segment of our population is growing fast. Who pays for their Medicare? Me!
• Our poorest neighbors have health insurance called Medicaid. Who pays for this? Me!
• Big companies offer health insurance. They fund this insurance by adding to the sales price of the products and services. Who pays for that insurance in the checkout line? Me!

It seems to me that not only do I have to pay a lot of money for my own health insurance each month, but I have to pay for everyone else’s too.

Now let’s close the loop.

As President Obama said last night “One in 10 Americans still cannot find work.” My small business and thousands others like it are supposed to end this recession by hiring people. I could hire 5 people today and put them to good use if I could afford it. It is nigh impossible in this economy to get a loan as a small business. As the President correctly said “when you talk to small businessowners in places like Allentown, Pennsylvania, or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they’re mostly lending to bigger companies. Financing remains difficult for small businessowners across the country, even those that are making a profit.” True.

Now couple this with the fact that not only do I have to pay the highest premiums on heathcare for myself, I have to fund everyone else too. Call me crazy, but maybe if we reformed healthcare in some sensible manner for small business, we wouldn’t need loans and could hire those 10% of Americans that are looking for work.

You have a rare chance, lawmakers, to kill two birds with one stone.

Think about it Washington.

Selecting a Radiology Billing System

Friday, January 22nd, 2010

I said last time that I was going to talk about radiology billing systems. We just went through the process of acquiring a new billing system.

Having spent 14 years of my career at IBM, I know a little bit about selecting software. The last time we made a software selection, we had a very short window in which to make a decision. This time around, we made sure we looked at it from every angle. The first thing we did was spend a lot of time at conferences and trade shows talking to rad groups about what they were using and what they liked/didn’t like. After about two dozen conversations like that, you begin to see that, in our opinion, there are three real players in the radiology billing software market; Imagine, Amicas and Zotec.

As you probably are aware, in April 2007, Amicas purchased a copy of the Imagine’s source code so the two systems look and feel the same. Since that time, the two companies have gone in two separate directions. There are many minor differences between the two systems, but the main differences we found were in how they packaged and priced the product.

Amicas has a one-stop shopping approach, while Imagine tends to partner with outside vendors. There are pros and cons to each approach. One could argue that if you focus on your basic apps and get best-of-breed vendors whose job is to be the best at their niche that is the right approach. However, it is always nice to have one phone number to call for any and every problem. In the end, this difference was not a major factor in our decision

We did not look at Zotec. During that period we were asking everyone we could find to tell us about their billing software experiences, we kept hearing how good Zotec’s software was, but we also kept hearing other stories that scared us away from even considering them. I wish I felt comfortable elaborating, but I don’t for a lot of reasons.

Our key decision criteria were as follows:

• Functionality of Base Billing System
• Price
• Annual Support Fees
• Statement options
• Electronic filing options
• Financing options
• Cost and Effort of Bringing on New Clients
• Conversion
• Partnership options
• Intangibles

As you can see, as a billing company, we will have a slightly different focus than a rad group. For example, unless a rad group is also going to bill for other groups, the cost and effort of bringing on new groups is a non-issue while integration with existing RIS/PACS may be a huge issue. These differences need to be factored in.

In my opinion, the Achilles Heel for both systems is their conversion options – or lack thereof. Conversion of existing data is expensive and cumbersome. One of these days I hope to make conversions to Amicas or Imagine a core competency of my company. There is a need, for sure.

If there was a key to my decision, it was mapping it to my business plan. I took my eight year business plan and mapped it to the proposals I received. In the end, it looked like a spreadsheet trying to land a man on the moon, but the results were the deciding factor. I factored in all the costs for new hospital interfaces, new licenses, planned price increases, etc. It really brought to light all of the nuances of how the two companies price and package their software, services and maintenance. Again, this will look entirely different for each company, but I highly recommend the exercise.

In the end, we settled on Imagine as our vendor of choice based on our business plan and selection criteria. It only became apparent after we did all of our homework.

To close, let me say that one option not discussed here is to engage a consultant in the software selection. We felt competent to do it ourselves, so there was no need for outside help. However, there are plenty of radiology specific consultants out there who can give you another pair of expert eyes on your software selection. Although I am not interested in acting as a consultant, feel free to call me if you want a few names or to chat about how I went about it.

RBJ Article on Revenue Cycle Management

Wednesday, December 30th, 2009

There is an old quote that says people don’t necessarily do what they are EXpected to do, they do what they are INspected to do.

In the December 2009 edition of the Radiology Business Journal, JulieRitzer Ross interviewed several practices on the metrics they used and the frequency in which they used them. One interviewee made a supposedly hyperbolic comment about measuring some things “minute by minute.” That sounds a little too intense if you ask me, but I do think that you need to keep an eye on a few key metrics.

Here’s my list from a billing perspective. On a daily basis look at your charges and payments. I compare them for each day of the month for the last year. For example, if it is the 15th of the month, compare that with where you were on the last twelve 15ths. On weekly basis, check your charges backlog and charges/payments by payer. On a monthly basis, I recommend the standard RBMA report with drill down capabilities.

To do all of this, you need to have the right billing system. You want this sort of thing at your fingertips because if it isn’t, you are probably not check things as thoroughly and as timely as you should. On my next blog, I’ll share with you some thoughts on selecting a billing system since I just went through the process.

Radiology Business

Wednesday, December 23rd, 2009

This is a blog about the radiology business. I think that needs to be stated up front.

As the owner of two radiology-centered businesses, I spend a lot of time talking to people in the profession from practice managers to owners of companies who provide products and services to the radiology. They always have insights about the business of radiology — the proverbial insiders scoop. So why not share the wealth?

My intent is to cover a wide array of radiology business topics from RIS/PACS to billing issues to mergers to trade shows. We’ll see where it takes us.