You can expect major changes to hospital billing this year thanks to thepandemic and shifts in patient behavior – but one of the most important that hospital and health system leaders should pay attention to is changes in use of outpatient services.
Ananalysis from the Guidehouse Center for Health Insights and Healthcare
Financial Management Association (HFMA) addressed hospital and health system
leaders including CEOs, CFOs, COOs, and other executives from 182 hospitals for
insights into what they expect in the near future. It found that a full 95% of
the executives surveyed expected higher outpatient volumes in 2023. As much as
40% of leaders expected increases of 10% or more.
Butthis shift isn’t happening on its own and those in charge of hospital coding and billing should payattention. 41% of the leaders surveyed expected lower inpatient volumes at the same time, with 17% expecting that drop to be 10% or higher [1].
What’s Behind the Shiftin Hospital Revenue Cycle
Hospitals and health systems have beennavigating this flow of patients from inpatient to outpatient since the beginning of the COVID-19 pandemic – a period where patients were avoiding hospital emergency departments and many providers postponed or even canceled elective surgeries to slow the spread of the virus. HFMA has found that leaders believe that emergency department visits will increase, along with elective
procedures, both at a rate of 10% or more. This is to be expected since, as
things stand now, many providers still haven’t returned to pre-COVID patient
volumes.
But many leaders will find themselvesunprepared since they are still navigating issues with staffing and workforce problems. A full 96% of survey respondents said that their workforce issues are having a negative impact on growth strategy, and this impact isn’t minor. Among those who are having these issues, 62% report that the impact is significant. And while these problems are most prevalent on the clinical side, many are
having issues on the administrative side also. Almost three out of four of the
executives surveyed are looking for hospital revenuecycle, coding, and ITexperts this year.
How to Adapt HospitalBilling to the Shift to Outpatient
As the “new normal” emerges, hospital revenuecycle leadersshould be taking steps to adapt so that you stay ahead of the competition and in front of any future challenges you might face.
Assess Your Current Statein Hospital Billing
Now is the time to look at your currentrevenue cycle processes and determine your baseline before you begin to make any changes. For example, does your staff understand outpatient billing well? Will they need additional training? Do your current workflows meet the needs of increases in outpatient billing and coding?
Now is also an excellent time to determinewhether your approach to measurement will be sufficient to evaluate any changes you make in your hospital revenuecycle staffing andprocedures. You might want to consider creating new KPIs to make sure you have solid insights intoyour decisions around outpatient changes.
Know that you’ll be doing the work ofcreating your own standards for using data to track outpatient claim statistics. There isn’t much of an industry standard and you’ll find considerable variation by payor and possibly even patient type, so a custom approach is best.
Improving Your CleanClaim Rate
When deciding on goals and standards, youroutpatient clean claim rate will be a useful place to start. Most hospital revenuecycle departmentsaim for around 95%, so if you aren’t hitting that number now, it’s a good time to start investigating ways to improve your processes and numbers.
One of the first steps should be a focus oneducation and training, ensuring that your team on both the coding and billing sides understand what constitutes a clean claim for all payers on outpatient contracts. If you begin this process and realize that you have a significant amount of work to do to get your team up to the necessary standards, consider working with a medical billing andcoding partner tosupplement your hospital coding andbilling needs.
Dive Into DenialManagement
During times of change like these, denial management only becomes more important. Having aclear strategy to measure, identify, prevent, and address denials will be
immensely helpful in developing a hospital outpatientbilling strategythat keeps cash flows healthy and creates a positive work environment for your hospital billers andcoders.
Know that denials are currently increasingand many hospitals and health systems are bleeding revenue as a result. But at the same time, the vast majority of denials are preventable. By appealing a majority of claims and aiming for a denials rate under 5% (or even lower), you can get a handle on outpatient billing issues before they even start.
Stay dedicated to identifying and rectifyingroot causes, and filling in with outside support where needed, and you’ll walk into a future of increasing outpatient volumes with confidence.
Consider OutsourcingHospital Billing
Hospital leaders shouldn’t take on this typeof unprecedented change alone. Many of your competitors are taking advantage of options in outsourced billingand coding to fillin gaps and create efficiencies that would be too difficult to achieve internally. They understand that outsourcing can stabilize revenue and reduce risk even while improving thepatient experience.
When you’re ready to take a fresh look atyour approach to outpatient hospital billing andcoding, we would love toshare our expertise and insight. Just contact us here to get started.
