Put it on One Page to see how you’re really doing!

The revenue end of this business should be easy, right?  All you have to do is negotiate advantageous contracts with your payers, code and bill accurately, collect the dollars and then go home.  Since it is so simple, I think I’ll just end this entry right here and now….

For those of you who haven’t clicked away yet, maybe you know it is not always that simple.  I have found that sometimes I needed to look at an ASC a macro view – look at the forest instead of the trees, to gain a better perspective on how the Center is really doing – compared to last year, compared to budget, and with each major payer compared to each other.

One way you can do is to print a bunch of different reports and bring them to your next Ownership meeting – then tell your partners to sift through each report and expect them to keep them all straight in their heads.  Or, you could look more organized and professional, as well as be more effective, by getting it all on one page that shows you where you are now and where you need to focus your attention in terms of increasing your net revenue through your contracting process.

The contents of this report are simple and easily placed in a spreadsheet:

-          Payer

-          YTD Cases

-          YTD Gross Charges Total

-     YTD Net Revenue Total

-          YTD Charges / Case

-          YTD Net Rev / Case

-          YTD % Charges Collected

(If you would like a sample grid to get you started, drop me an e-mail at BataviaSolutions@Comcast.net and I will gladly send it to you.)

This grid is a handy way to summarize how a Center is doing on a “per payer” basis with all its major payers.  It allows an ASC's leadership to look at each payer, side by side, in terms of reimbursement, volume and contribution to the Center’s overall performance.  For Centers that I work with in terms of modeling revenue and identifying opportunities to improve contracts, this is a tool we complete up front to provide a road map for our work together.

Be prepared:   using this tool to examine your Center may (will?) create additional work for you!  Fortunately, it’s the right kind of work – it gives you a roadmap to increasing your Net Revenue per Case on the volume you already have.  Remember, every dollar you can add to that NR/Case number goes straight to the bottom line.

David Parrott, CASC,  is a Principal in Batavia Solutions, an ASC Consulting firm that specializes in managed care contracting and business and operational efficiencies.  To find out more about Batavia Solutions and how they might help your Center, send David an e-mail at BataviaSolutions@comcast.net