Medical Billing and Accounts Receivable Management

TO: ADMINISTRATORS & CFO’S
FROM: PRIME SERVICES, INC.
DATE: DECEMBER 29, 2009
SUBJECT: MEDICAL BILLING AND ACCOUNTS RECEIVABLE MANAGEMENT

PRIME Services is pleased to announce a new and unique service to assist our skilled nursing providers with the billing and collection of private and third party claims. With over 20 years of experience in this area, our staff can manage these functions with the goals to:

  • Accelerate cash flow:
    • Decrease your net days of unpaid revenue.
    • Utilize our knowledge to collect from managed care accounts and insurance companies in a timely manner.
  • Capture all billable services:
    • Implement proven systems to reduce lost charges.
    • Develop most effective charge description master.
  • Eliminate denials and write offs:
    • Collect from late payers.
    • Reduce bad debt.
  • Develop revenue cycle efficiencies:
    • front-end data collection practices.
    • Eliminate business office distractions.

 

We work with your existing software to ensure consistency with clinical documentation standards. We assume responsibility for business office staff training and education. In addition, we develop new practice standards as a result of changes in third party regulations and insurance mandates.

If you would like a no cost, no obligation audit of how we can help you in the ways mentioned above, please contact Valerie at 866-585-3344, Ext. 115, or email valeried@primeservicesinc.com.

Thank you for your time and consideration.

Improve Food Service Department Operations and Reduce Costs

Improve Food Service Department Operations and Reduce Costs:

 

In the majority of long-term care operations, food is the number one supply expense and therefore, all costs associated with it must be evaluated on a regular basis.  Below are 25 suggestions to help you keep your food service department costs in line and improve operations.

 

  • Use a purchase order system. 
  • Understand inventory turnover and at what level your categories of products should be at. See our news story on Inventory Turnover.
  • Understand how your distributor prices your account by "markup" or "margin", a big difference in terms of what you pay. Note most operations think they are on "markup" but are actually on "margin" and are therefore paying more.
  • Check and verify all deliveries.
  • Use a scale to weigh appropriate products.  Understand what you are weighing, for example, product or ice.
  • Check prices and verify that you are paying the correct prices. For more information please see our new story on Invoice Price Verification.
  • Use a Group Purchasing Program to help you lower costs.
  • Decide where brand names are needed and where house labeled products can be used.
  • On a regular basis, evaluate products by doing blind cuttings to verify that you are receiving the quality expected and that there is not a better product fit for your operation.
  • On at least a yearly basis evaluate potential distributors.
  • Make sure your distributor advises you of any specials available.
  • Don't be afraid to make changes.
  • Be aware that product theft will cost your operation.  Implement procedures and systems to reduce this risk.
  • Perform intake studies on a regular basis. Understanding what residents are not eating will help lower your food and supplement costs by providing meals that are consumed by the residents.
  • Monitor your meal cost per resident day see how it compares to similar operations.
  • Know your labor cost per resident day and how it compares to similar operations.
  • Employee turnover is a large expense to your operation. Understand how to reduce turnover.
  • Keep informed of training programs to improve knowledge and operations for better resident care.
  • Technology can be a great tool and time saver.
  • Place orders electronically and utilize the reports available to improve your operation.
  • If using a manual tray card system consider upgrading to an electronic version.
  • If the food service department is performing resident care functions manually, consider upgrading to an electronic tool to manage and streamline all the resident care functions in a program like Dietech.
  • Once you have automated your resident care functions use the available reports to help control your costs and implement procedures to improve resident care.
  • Poor production control leads to increased costs.
  • When creating your menu, understand products that can be substituted for one another and which ones are in season or more available as this will help to price out your menu at a lower cost.

 

We would like to hear from you if you have found other ways to reduce costs or improve operations.  Please send your success stories to info@primeservicesinc.com and if you would like us to mention your name, we will give you credit for your story on our website. 

Lower Your Dietary Supply Costs

Typically 35% of a long-term healthcare facility’s operating costs are non-labor. Of this amount, roughly half is attributed to the food service department. The director of food service has so many responsibilities that supply costs are often overlooked. It is certainly not from a lack of knowledge, but more from the standpoint of priorities and having the time to implement and monitor systems to control the dietary departments’ supply costs.

If you feel that your costs per resident day are not in line with where you think they should be, we are providing below some suggestions to help. As with any system, this must be an on-going process and not a one-time event. Some of these ideas are fairly simple to implement where others are more complex. If staff and/or time do not permit, PRIME Services can assist you in understanding how to lower your costs per resident day.

It is easy to say that the food and supplies have been bid out. It takes a very dedicated effort to keep costs per resident day down. This effort needs to encompass activities such as:

  1. All orders should be inspected, verified and counted.
  2. A scale should be used to weigh appropriate products.
  3. Understand inventory turnover for dietary should be between 23-26 turns per year. Being outside of this range on either side it not good.
  4. Understand how your distributor prices your account by “mark up” or “margin”. There is a big difference in the prices you pay between a 10% markup vs. a 0% margin.
  5. Place orders electronically and utilize reports available to improve your operation.
  6. Product theft will cost your operation. There should be controls on all exit doors and delivery areas.
  7. An order guide should be followed based on what is on the menu. Items that are ordered and are not on the menu need to be questioned.
  8. On a regular basis, evaluate products by doing blind cuttings to verify that you are receiving the quality expected.
  9. Don’t allow suppliers to substitute products without your permission.
  10. Don’t allow suppliers to go into your storeroom and determine what is needed.
  11. Do you know how your costs per resident day compare to other facilities similar in size?
  12. Make sure staff knows how to use equipment and does not use excess products/supplies, thinking that if one is good, two must be better.
  13. Use a Group Purchasing Program to help lower your costs.
  14. Check prices and verify you are receiving the correct contract prices.
  15. All suppliers must be thoroughly evaluated and preferably a request for proposal should be sent to competing suppliers at least every two years to keep your pricing competitive.
  16. Communicate with suppliers to let them know of any problems and learn from them, ways to reduce costs such as increasing order size, taking fewer deliveries, buying close out items and what specials they may have.
  17. If products come in damaged or not at all, make sure you receive the appropriate credit on your invoice.
  18. If using a manual tray card system, consider upgrading to an electronic version to save on time.
  19. If you are performing resident care functions manually, consider upgrading to an automated system to manage your residents’ needs.
  20. Don’t assume larger sizes are less expensive than small sizes on a comparable basis, like per ounce.
  21. Intake studies are time consuming, but they can help understand what residents are not eating. This information if used properly, will help to lower foods and supplement costs.
  22. Technology can be a great tool and time saver.
  23. Don’t be afraid to make changes to benefit your facility.

PRIME Services has worked with many facilities to assist them in establishing systems and helping monitor them to reduce total costs. You may not have the staff and/or time and this is where can assist you and bring a focus to this area.

For more information, please contact Valerie at 866-585-3344, Ext. 115, or email valeried@primeservicesinc.com.

Thank you

Briggs - MDS 3.0 User's Manual

Click the file below to get the latest information and pricing on the MDS 3.0 User's Manual from Briggs.

 

BriggsMDSBlog.pdf (35.55 kb)

 

EcoLab - Sustainability(Green) program

Click here to get more information on Ecolab's Sustainability(Green) program

Sexauer - New Website

Visit our new website at http://www.jasmro.com

Sexauer.pdf (1.39 mb)

Ensure - Two New Products

Be sure to mention you're a PRIME Services member when calling in to ensure you receive additional discounts that are available exclusively to PRIME Services members.

Abbott will be launching two new products in their Ensure/Ensure Plus line on August 9th 2010. The two new products are Ensure Muscle Health 8oz and Ensure Clinical Strength 8oz bottles.

Ensure.pdf (149.23 kb)

PRIME Services

PRIME Services, from its original roots as a purchasing and consulting company in 1983, has grown into one of the largest group purchasing organizations for nursing homes and assisted living communities across the United States.

Today, PRIME Services has three divisions, all focused on removing costs from the supply chain while increasing operational efficiency. The three divisions are; Group Purchasing and Custom Contracting, Consulting and Purchasing Services (CAPS), and a Technology Division

Be sure to mention you're a PRIME Services member when calling in to ensure you receive additional discounts that are available exclusively to PRIME Services members.

 

Month List