12 Aug Good News, Bad News: Impacts on Your Practice’s Bottom Line (Part 1)
We asked Eric Brodsky, the Chief Operating Officer of Midwest Center for Women’s Healthcare, and wealth of knowledge regarding all things revenue cycle, what significant changes he has seen in recent years that impact the bottom line of a practice. He gave us three positives and three negatives. We’ll start with the bed news first, and work our way up to the good news with our next post.
Eric sees electronic medical records as a mixed bag in this case – they have both negative and positive elements for practices. They have done a lot for streamlining processes and the patient record overall, but EMRs have also created more challenges for practices and physicians. The cost of expanded IT needs directly impacts the practice’s bottom line.
Eric has also witnessed the effect that additional payor requirements have on a practice. With the increase in technology available to payors, they have moved to automate processes. These technological advances, combined with the extra time payors have on their hands thanks to automation, means they have been able to increase their auditing capabilities – and the volume of their audits.
Tracking clinical quality measures has a significant practice impact – the time spent alone on these duties negatively impacts a practice’s bottom line. Further, reaping the benefits of the quality care you are providing the patients is a challenge because it is difficult to prove you are providing quality care. Incentive payments can help to offset the impact, but in general, the system has not yet made the shift to payment for quality. Until payment methodologies shift to focus on quality, rather than quantity, as in our current fee for service environment, this will remain a negative impact to a practice’s bottom line.
Next post we dive into some positives, so stay tuned!