Are you feeling as though you’re missing out on revenue that your hospital deserves? Well, there’s a great possibility that you just might be. No need to worry though, we have laid out five situations that are telling signs you’re leaving money on the table.
1. You don’t know what you’re spending on physicians administrative time.
The average hospital spends about $10-20 million on physician administrative time, yet it’s hard for them to answer what makes up that spend or how many agreements they have. Does this sound familiar? This is probably the biggest issue for hospital administrators. If you can’t access how much you’re spending on specific administrative, how do you easily and accurately reflect your costs of doing business to CMS? Being able to articulate those compensable duties to CMS can positively impact your revenue through better Area Wage Index when your reimbursements are determined. Data is king here and without it, you are missing out on revenue.
2. Your teaching program is so successful that you don’t worry about capturing GME reimbursements.
Hospitals with teaching programs regardless of reputation and/or brand, are entitled to capturing revenue for doctors who spend time with graduate medical students. Accurately capturing these data points will ensure you maximize GME reimbursements.
3. The other major hospitals in your area are doing a better job to improve the Area Wage Index.
Phew. At least the other hospitals near you are reporting cost data comprehensively to the benefit of the AWI for all of you. Or are they? Maybe like you, they’re not accurately reporting admin costs and are leaving money on the table. If CMS determines reimbursement based on an index calculated from costs submitted in your area, it seems like you want to take every opportunity to capture those costs as well as lean on other hospitals to do the same.
4. Your CMS cost report has no physician compensation data.
Unless you have no population with Medicare, how is it possible for a hospital to not include physician admin and compensation data in their cost report? We see this over and over. These organizations are leaving a lot of money on the table. We can give them easy access to actionable cost data to report to CMS and improve their chances for gaining revenue as a result.
5. You are already doing everything possible to increase revenue.
Ah, yes, you’re a Ludi client already capturing more data than you thought possible. In fact, as a Ludi client you run a Year End cost report, parse out non-compensable duties for CMS (such as for marketing) and combine with your other data assets saving your finance team weeks of work. Oh, you are NOT a Ludi client? Then you should let your folks get back to crunching numbers from paper time logs. You’re not alone, many organizations across the country are finding themselves in one or more of these five situations. Take the necessary steps to get your organization back on track and of course, feel free to contact us to chat and learn more about what your hospital can be doing to receive the money you deserve.