Outside, third party collection agencies - medical billing news!

Making use of debt collection services, and knowing when to hire outside collection agencies is often important when you operate a business. When credit is extended to customers or clients it is often a gamble, because even those with excellent credit history can occasionally miss a payment or experience financial hardship. Regardless of the circumstances however, it is still important that their payments are made to you on time as agreed.
Today, business owners confront new cash flow challenges due to tightening credit markets brought on by a recession, the subprime mortgage fallout and economic crisis. With less availability and access to credit, businesses are faced with looking for other avenues to maintain positive cash flow and keep their businesses operational.

The world of chasing payments and EOB's - medical billing news!

It is extremely challenging to chase down payments if you are not receiving timely EOB's. The only options available is the nightmare of calling the insurance carriers, which MANY have outsourced to palces like India and Asia AND searching the web. The best solution? Get your clients to send you the EOB's that you need in order to properly close out claims AND to invoice your own client. Tough stuff.

Should you work with your "friends"? Medical billing news!

Although it may sound "NICE" to work with a friend, it is NOT always recommended.
It definately and absolutely depends upon the relationship and the business arrangement.
Definately look closely at role definitions, monetary contributions and task management. As uncomfortable as it may seem, it is imperative to consult with a business planner and an attorney.
OTHERWISE, the entire business relationship and personal friendship will QUICKLY become a nightmare!

Silence on the phone - medical billing news!

Like any kind of conversation, conversations over the telephone have rules. One of those rules is that when one person is talking, the other person sends signals to the "talker" that they are listening, and still there. This is necessary because the parties can't see each other. The only way to know there is a person on the other end is if the other person makes some sort of noise, usually "yes", "uh-huh", "I understand", etc. Consistent with our self-defense principles, you do not want to follow this rule. The best way to get a person to stop talking on the phone is simply to say nothing at all. If you can avoid breathing into the phone, or if you can exclude any noise getting through from your end, this is even better. Eventually, the person on the other end will stop, and say something like "Hello, hello, are you there?", and pause for a moment. This gives you the opportunity to say something at the invitation of the caller.

Medical billing business name - medical billing news!

What's in a business name? Everything and nothing. The right business name will help distinguish you from a sea of bland competitors, provide your customers with a reason to hire you, and aid in the branding of your company. A business name won't make up for serious deficiency in your business operations or help you avoid selling. Apply these 10 commandments when choosing a name for your business.

1. Take Naming Seriously: Naming your business or products is a serious matter. The name you choose can play an integral part in the marketing of your company. Your name projects your image, brand, and position in the marketplace.

2. Avoid Word Play Dangers: Taking the word play strategy will add to the difficulty in having customers remember and find you. Being cute can backfire. Funnynames.com lists the following actual "businesses to avoid:"


Ear-Resistible Designs Plus


Dirty Ernies Paragon Hotel


Fireball Oven Co


Mess Graphics Inc


Ralph Rotten's Nut Pound


X-Ray Sweaters

3. Don't be an IBM: It's tempting to abbreviate your business name to make communications and correspondence easier. However, as a small business owner you don't have the resources and marketing muscle to educate your market on what your acronym means.

4. Be Focused: Forget tagging your business name with the moniker such as global or enterprise. Any start-up founder has big visions for their company. You might one day envision marketing to diverse markets and having a wide range of products. Successful start-ups have limited time and money; it's more likely your success in the world of commerce will come from being highly focused in one narrow area. A small company is a specialist; it's why your customer wants you.

5. Stay Out of Court: Don't use, borrow, or modify an existing famous brand name. In Elizabethtown, Kentucky, Victor Moseley used the name Victor's Secret when he opened his adult gift and lingerie shop. Victor's Secret did not remain secret when the legal department of Victoria's Secret sent a letter to Moseley claiming trademark infringement. In haste, the name was changed to Victor's Little Secret, but the change was not enough for Victoria's Secret who then filed a lawsuit.

6. Think Beyond Local: The bulk of small businesses operate in local markets. This doesn't mean your name should be geographically based. If you are marketing to customers in a local market, they'll know you operate locally. Adding your town name to your business name just ensures you will be stuck in a long directory list of other local companies with similar names. If you want a local name, add it to your marketing such as "Exclusively Serving the (town) Area."

7. Avoid ME Inc: It's a common tendency for a business to be named after the original founder. If you are planning to one day sell your company, a company owner named business is less attractive to a perspective buyer's than a brand built on a company.

8. Ask Others to Spell it: When I started one of my companies and named it Insightica, it was unique enough but it drove me crazy the number of times I was asked to spell it. The word could be spelled with site or sight. Put your business name through the spelling test and ask others to spell it. Yourdictionary.com lists experience, intelligence, jewelry, millennium, and personnel as a few of the top 100 most misspelled words.

9. Be Web Friendly: Consumers are bombarded with business names and advertising on a daily basis. Your job as a successful small business is to make customers remember you. Your website web address should be the same as your business name. Avoid the hyphenated web address names. It's hard enough to remember a web site address without the hyphens.

10. Check Availability: When you have developed a great business name, spend the time to determine if another business isn't using it. You can use a similar name for your business if another company uses it in an unrelated market or industry. Once you have your name, protect it by registering the business name with your county or State office.

Your business name should be easy to remember and memorable. Apply the 10 commandments when naming your business and in the end you'll avoid a marketing disaster.

Money and Complaint resolution - medical billing news!

It is not unusual for some companies to have 30 - 40% of their debtor/sales ledger subject to queries and/or complaints.

When you look at any list of debtors, you can be sure that a certain element is not late payment related. Credit control has the function of getting all accounts paid. Therefore, they have the responsibility to resolve any issue that stops full payment of an account. They may not necessarily resolve the issue themselves, but they should be the catalysts for identification, control, resolution and finally, payment.

The following month another invoice is sent out (yes, you guessed) there was no order number on the invoice! It takes one minute to change the invoice details on the customer's computerized or manual account to ensure all invoices to that customer will include an order number. Good administration discipline is essential for efficient invoicing.


As you can see, it does not take much to get to 65 days from invoice with a good paying customer: a 'professional defaulter' with cash flow problems can easily take the days outstanding well beyond 90 days.


You should not expect the supplier to take affirmative action on an incoming invoice that they cannot identify, or is simply incorrect.


The 'old chestnut' of "we have not been invoiced": in answer to why the customer has not paid, should only ever happen once in a trading relationship.


When a customer blames the lack of an invoice, from you, is stopping them from paying, you must take final and decisive action to ensure the invoice can never again been used (fairly or unfairly) as a reason for withholding payment.


You need to get clear instruction and reference information to enter onto the invoice, from the customer, and ensure the customer information is updated on your record for future invoices.


Further problems can be caused by customers paying part of an invoice: due to disputed items, non-delivery, discounts that are not due, goods that are not wanted, and of course: those who have cash flow problems

Don't get caught UNlicensed! Medical Billing News!

Don't Forget This Crucial Business Requirement

Many state, county, and local governments require companies to obtain business licenses and permits before they can start conducting business. Business owners must comply with government requirements regarding business licenses, permits, and tax registrations. Requirements vary by location and business activities. Failure to register could result in fines, notices, and the inability to conduct business.

When a prospect says no - medical billing news!

One of the most disappointing results is when someone says NO to your offer of medical billing services.
The close is the most important part of the sale and should be the least scary.
The scariest part is the presentation. Asking for the sale or asking about the next step should feel like a relief. YOU HAVE GOTTEN FAR in your appointment. You should be proud of yourself.
It is inevitable that not everyone you present to will work with you. As a medical biller seeking business, you have become a sales representative, whether you like it or not. Sales is not easy. Selling yourself is that much harder, but the more prepared and confident you are, the more likely you will land the customer.
If a prospect does not want to make a change to work with you, or if a prospect decides on another billing opportunity, take the high road.
STAY IN TOUCH with that practice - you never know the future and how circumstances change.

When the front office doesn't work well with you, the medical biller

It's a tough call to know exactly WHEN to resign an account.
I had an account recently that was an absolute disaster.
They never checked eligility, they didn't track copayments or other important patient information, the billing always came late, I never received copies of EOB's in a timely fashion, and they were at least two months behind in MY invoices month after month.
This situation is clearly NOT ideal and was quite painful for me, as a small business owner.
So, I made the difficult decision of offering my notice of termination.
Has this type of situation happened to you?
I'd love to hear more and how you handled yourself.

Customer Service Problems - medical billing news!

The first step to helping an angry customer is to identify why they are upset in the first place. This is the perfect chance to practice your listening skills. Make sure that you listen carefully, and repeat the important points back to the customer so that they know you understand the problem. Trying to solve the problem is impossible if you are not aware of exactly what the problem is.

Often in customer service, the employee will be actively listening but will also be trying to solve the problem prematurely. Listen to everything the customer has to say, without interrupting. Often a solution will present itself while the customer speaks but continue to listen. A customer wants to feel listened to.
Your customer also wants to feel as though you empathize with their problem. Many times, this will be the deciding factor of whether your customer walks out happy or angry. Do not underestimate empathy skills where customer service is concerned.

As you go over the problem with the customer, make sure that you focus on solutions that you can do. Often in customer service, the employee will anger the customer by concentrating on those things that they cannot do. Remain positive and simply explain to the customer all the options that are available to them. If you give them multiple options your success rate rises. All customers like to feel as though they have a choice.

You can usually tell early on if a customer wants something more than you can give them. If this is the case, do not drag out the problem further by trying to solve a problem that you are ill-equipped to solve. Excuse yourself politely and explain that you are going to get your supervisor to see if they can solve the problem.

Business nightmares, and how to recover from them:

Is the current economic downturn keeping you awake at night? In turbulent times it’s important to weigh up the risks of starting up or staying in business. But difficult times can bring unexpected opportunities as well.

There is absolutely no better time than now to begin your very own medical billing business. It offers you complete independence and a lucrative income during a time of layoffs and downsizing. Ask yourself the following:

1. Do I have the guts to undertake such a challenge?
2. Do I have the ability to seek out the true opportunities from the rest?
3. Other than a certification, will I have a resources to teach me HOW TO START?

Visit www.MedicalBillingFoundation.com for more info

Medical Billing Goofs - medical billing news

In a previous installment of medical billing goofs, we discussed what happens when you bill the wrong item to a carrier and how you can be charged with fraud, but what happens when you send a bill to the wrong carrier. What follows is a genuine story. It's kind of funny when you read it, but the truth is, it's far from funny. This is some serious stuff.

A medical billing company, we'll call them XYZ company, was sending out a claim for a patient, we'll call him John Smith, to Medicare Region A, which is in the New York area of the United States. Now in actuality, the name of the patient was a common name so there could have very well been many people with that name.

Anyway, the bill makes its way to Medicare Region A and the response from Region A is that they are not going to pay the claim because the patient that the company was billing was dead. Well, to make a long story short, the medical billing company gets on a conference call with Medicare Region A and the patient. On the one end, the patient is screaming at the carrier, "How can I be dead? I'm right here". The carrier simply responds that according to their records, the patient is dead.

Well, this back and forth goes on for quite a while with quite a few phone calls. Finally, Medicare Region A decides that they're going to go over the patient's records with the patient and the medical billing agency. So they begin the questions starting with name, address, etc. Well, when the patient gives the carrier his street address and state, the carrier responds with the following. "Sir, Texas is not in our region". Well, it turns out that the patient had the same street address as another patient in New York. Everything was exactly the same except for the state, which nobody bothered to check. So what happened was that the patient had his claim sent to Medicare Region A when it should have gone to Medicare Region C.

Everybody had a real good laugh about this, but the problem still wasn't solved. Now the claim had to be forwarded to Medicare Region C. The problem was that the medical billing agency was not licensed to bill Medicare Region C. They only had a package to bill Medicare Region A. So now they had to see if they could get Medicare Region A to forward the claim to Medicare Region C. Well, they could, but there was a charge for this. Well, the medical billing agency said no way. So what did they do?

They got a hold of another medical billing agency that did bill Medicare Region C and arranged to do a swap. They'd bill one of their patients for them, thus incurring the cost, if they'd bill Medicare Region C for them. The company agreed and sent the claim. The problem was finally solved.

You can't make this stuff up.

Michael Russell

Small business tax nightmares

Small business owners across America are cheering the imminent demise of the estate tax, but Congress is poised to approve a little-known tax procedure that soon may give them headaches all over again, according to Bruce Bartlett, senior fellow at the National Center for Policy Analysis (NCPA).

The procedure is known as carryover basis. Why the nightmare? Bartlett explains, "Under carryover basis, the value of assets is no longer stepped-up at death. Instead, heirs inherit the original basis of the assets. So if a small business owner leaves at death stock worth $120 that he bought for $10, the survivor must pay tax on the full $110 appreciation, not the original price of $10 as current tax law provides."

Application of carryover basis also can be difficult. Since assets have historically been stepped-up at death, small business owners may not have kept complete records. And even when records exist, it is difficult to establish original basis when dividends, interest or other returns to capital have been reinvested over time. Then there's always depreciation and renovation for plant and equipment.

Conferees established carryover basis in the Tax Reform Act of 1976. Within six months, the outcry was so loud, Congress basically told people to ignore the law. And finally in 1978, Congress delayed implementation of carryover to its effective date-as though it never existed.

"The carryover basis provision Congress appears ready to endorse may not be the way to go. If it's enacted, I predict a repeat of the 1976 revolt with almost immediate pressure for its repeal," Bartlett said.

Bruce Bartlett's columns are distributed nationally by Creators Syndicate.

When in doubt, GET OUT!

Walking (or in some cases...running) away from a client is the best possible thing for you and for your business.
HUGE red flag is a client's inability or "challenge" in paying.
If a client either post-dates checks to pay you in segments OR only pays via credit card, be aware.
This happened to me.
I worked with a large clinic that was mostly a PIP and WC practice and I collected thousands and thousands for them. But, they never seemed to have the available funds to pay me.
They often post-dated checks to pay, but there was never any money in the account, etc. It was a nightmare!
I was at a huge loss when I finally decided that something was just not quite right with this company.
But, it was the best thing that I could have done!
Visit www.MedicalBillingFoundation.com for more info and daily blogs.