Know the four places where your money is hiding
ATLANTA – At a time when HME providers need to keep track of every penny passing in and out of their businesses, many still struggle to know where their money might be.
At Medtrade in Atlanta, Sunil Krishnan, vice president of global operations & analytics at Brightree, will show attendees where their money is tied up, and how to make sure they don’t lose it once they have it.
HME News: Where are providers when it comes to knowing the status of money that hasn’t been collected?
Sunil Krishnan: Too many providers don’t take the time to understand their numbers. They judge by what’s coming in the door and what’s going out the door.
HME: How can providers identify money that might be tied up in their businesses?
Krishnan: There are four places where the money could be hidden. First, unconfirmed sales orders: the money isn’t in account receivables yet, and you can’t confirm until you get documentation. Second, non-billable revenue: The money’s been booked, but you haven’t sent out to the payer for reimbursement. Third, the stuff that’s starting to age: It’s over 90 days, the payer hasn’t paid, but you haven’t followed up. Fourth, the write-off categories, which you may have a limited capacity to analyze.
HME: How can providers use analytics to help them ensure they’re collecting as much as possible in a timely manner?
Krishnan: One of the most important issues is having actionable data, which boils down to having data that is reliable, robust and repeatable.
HME: Can most providers improve their efforts in this area with the technology they already have, or is there additional investment involved?
Krishnan: That comes down to what system they are on. Some people will build systems internally, while others will bring in systems from outside.
HME: How can a provider make this part of the process at his or her company?
Krishnan: You need to know what the goals are for the company and what processes are in place to monitor key performance indicators (KPIs).
HME: What’s the one thing you hope attendees learn from your session?
Krishnan: That if they put analytics in place, it can help them be proactive, while also improving their cash flow.