Unpaid Medical Bills and Health Care Initiatives Increasing Demand for ARM Help
An increase in bad debt brought on by the economy is a major cause of hospitals seeking out receivables management help. But health care reform could also push many providers to reach out to ARM and revenue cycle firms.
A recent survey of hospital financial executives showed that the vast majority of medical business leaders believe implementing information technology and outsourcing more of their receivables management is the best strategy to reduce their administrative costs. Even better news for revenue cycle managers is that most health care providers surveyed expect to do so in the coming year.
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Hospital financial executives are turning to outside help because of the growing number of patients who are unable to pay their medical bills, according to a survey by Louisville-based revenue cycle management firm MedAssist, Inc. And with the national unemployment rate near 10 percent, these executives say securing payments from uninsured or underinsured patients is their greatest challenge.
Hospitals executives have had to deal with lower revenues during tough economic times before. But many see the escalating costs of health care and anticipated changes from health care reform as a challenge that will require expertise offered by ARM professionals, said Brenda Snow, MedAssist’s executive vice president of strategic planning and analysis.
“Right now providers are seeing things as a threat of the unknown,” she said. “Many in healthcare are just seeking answers to what’s going on.”
HFMA Spokesman Richard Gundling told insideARM that while health care providers are hopeful that health care reform will secure coverage for all Americans, they fear it will bring lower reimbursements from public and private insurers.
“They are not opposed to new legislation, but they fear the details,” Gundling said. “Greater coverage for everyone is good. But if we cover everyone and pay below cost, that’s a big challenge for hospitals.”
To help mitigate the impact of lower reimbursements in the future, hospitals and the Obama Administration Wednesday announced a deal for hospitals to accept $155 billion less in Medicare and Medicaid payments over the next 10 years to help fund healthcare reform. In exchange hospitals were promised that if legislation includes a public health insurance plan, it will reimburse hospitals at rates higher than what Medicare and Medicaid pays.
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Comments
Comment from notmd on July 9, 2009 at 11:06AM EST
wait until universal coverage is passed and business offices need to bill and follow with more insurance carriers..they will definitely need help to maximize this cash flow
Comment from Lethal on July 9, 2009 at 11:34AM EST
I think hospitals accepting less over the next 10 years will bankrupt most of them. Thus, we will be looking at a large bail out for them. And, there is no gauruntee that in 10 years such a plan will really be able to reimburse at higher rates than Medicare and Medicaid do today, both of which already have lowered their payments and shorted the period of time allowed to collect on such bills.
Comment from Anonymous on July 9, 2009 at 1:25PM EST
Sounds like robbing Peter to pay Paul, which is part of the problem with healthcare costs. Medicare and Medicaid get reimbursed at a lower rate, so actual costs vs reimbused costs, must be passed on. Health insurance companies negotiate discounted rates, again, the difference between actual cost vs reimbursed costs must be passed on.
If the government can't effectively run and fund Medicare and Medicaid, how the heck do we think government will be able to take on all health care?
I'm not opposed to something being done for the uninsured by any means, but cost shifting isn't the way to do it.
Comment from Sam Small on July 9, 2009 at 1:43PM EST
When universal coverage is passed, the quality of healthcare will go down dramatically as in all other countries that have universal care. The waiting list in those countries for many medical procedures or operations is very long, and you have to wait many months until you get what you need. Just look at our government services how inefficient they are, compared to services from private companies.
Comment from Anonymous on July 9, 2009 at 4:19PM EST
Actually countries with universal coverage have lower mortality rates. It seems that our healthcare system is on a collision course with some hard decisions that need to be made. It is true that universal coverage can lead to waiting lists for procedures but I don't know that a single payer system has the same outcome - isn't that what we are really talking about? I wonder why we consider public education a right in this country but not basic healthcare.
Comment from Lethal on July 9, 2009 at 4:38PM EST
Basic healthcare? There are too many people who need more than that because of the unhealthy choices they have made for themselves. Obesity and Diabetes...occurring now in our 12-15 year olds. And medical costs aren't going down, never will. I highly doubt governmental/univeral coverage will lower US mortality rates. People can do that for themselves by educating themselves and making healthier choices. I am not going to pay for someones scooter because they are obese and can't get around....Oh wait, we already do that.