To be an effective practice owner, it is necessary to understand the financial circumstances and environment of the practice’s operation. Well-managed practices prevent the loss of time and money. Therefore, to improve productivity and operating efficiencies, you need to have a basic understanding of billing and payment initiatives that will impact the practice’s bottom line. The financial system of a medical practice will contribute to every other system within the practice.
Explore this issueDecember 2016
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There are many new initiatives on the healthcare platform that include new ways of getting paid, due to such programs as value-based purchasing, clinical documentation improvement and quality care across the continuum. It may be tempting for physicians and practice managers to just insist on holding on to what is comfortable—stay with the norm. But things are not the same, and we are moving into an era where the norm is something of the past. Taking a close look at all the practice and payment initiatives is vital to the financial survival of a practice. Embracing new initiatives and finding the best application to each practice can prevent leaving millions of dollars on the table.
Throughout the past few years, most practice changes have been due to initiatives spiraling down from the Centers for Medicare & Medicaid Services (CMS), such as the Physician Quality Reporting System (PQRS), meaningful use EHR Incentive Program and the clinical documentation improvement (CDI) program. Although the programs may seem different, they are designed to work together as a whole to improve quality measure reporting on patient visits and care.