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DOING BUSINESS


Maximize the Value of End-of-Month Reports Identify and improve your center’s revenue cycle management efforts and cash flow BY CARYL SERBIN


Your ASC’s end-of-month (EOM) reports serve mul- tiple purposes. They help your accountant with tax purposes and your ASC’s


governing body in understanding the center’s performance. These reports also could be used to improve the effi- ciency of your revenue cycle manage- ment (RCM) team and cash flow. These reports can play an impor- tant role in identifying billing and payer trends and problems, providing your RCM team with vital information to stem negative effects on the reve- nue stream. Many ASCs, however, fail to use their EOM reports to evaluate more than accounts receivable (A/R). While the aging of A/R is essential in assessing financial health, it is not the only important information to glean from appropriate EOM reports. These reports can pinpoint weak areas in staff performance and be used to measure revenue cycle functions through reg- ular auditing, which is an often-over- looked management task.


Areas of Focus When exploring the many EOM reports available to your ASC via its software, the following are notewor- thy for helping identify areas needing further examination. Please note that report names might vary by software. The “A/R summary” report, roll- ing on a 12-month basis, provides vital A/R-related information, such as growth or decrease in total A/R over a specified period. It also breaks this information down into other crit- ical measures. These include charges and collections per case; gross and net collections; net revenue per day;


monthly comparison of case totals; CPT codes per case; write-offs and refunds; and the average number of days it takes to receive reimburse- ment (i.e., days in A/R). The amount of data examined and the multiple manipulations of this data available make this report one of the most use- ful for gauging revenue cycle per- formance. Since the A/R summary report can effectively display data in multiple ways, it is a great tool to pinpoint where revenue leaks occur. The “aging by payer” report provides important payer-related information. It measures this data by total balance owed by each payer and allocates payer bal- ances into 30-, 60-, 90- and over 150- day groups. This information also is compared to previous months to identify outstanding payer balances according to age. Such comparisons support faster recognition of slower payer reimburse-


24 ASC FOCUS JUNE/JULY 2020 | ascfocus.org


ment trends and identification of staff performance shortcomings. Two reports that identify A/R fluctuations caused by case mix are “volume by payer” and “volume by specialty.” These reports can iden- tify reasons why collections are declining while the center’s caseload remains unchanged. The volume by payer report illustrates each payer’s percentage of your caseload. Volume by specialty provides an overview of


each specialty’s the caseload.


Learning from and Acting on the Data


Understanding the data provided by these reports and converting it to practical use is an important part of the EOM process. The A/R summary report identi-


fies possibilities for total A/R varia- tions, which can point to additional


The advice and opinions expressed in this column are those of the author and do not represent official Ambulatory Surgery Center Association policy or opinion. percentage of


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