Automated collection systems improve cash flow - includes related article on consistent follow-up

Healthcare Financial Management, Dec, 1989 by Edward F. Robinson

Setting workload priorities. When patient accounts are moved from the main hospital information system, they are usually in alphabetical order by patient name. Patient accounts managers may want to divide the workload differently and set priorities for accounts within each category. The ability to adjust individual workloads on a daily basis helps maximize the return to the hospital.

Detailed information. The system should have the ability to store all information the business office needs to recover the outstanding balance. Along with basic demographic information about the patient, the guarantor, and the balance due, account representatives should be able to look at details of charges, a history of the service rendered, and the payment history. They should be able to examine insurance coverage information, including the contacts at each carrier. This gives account representatives the ability to respond immediately to inquiries, without having to consult other sources.

Note capacity. To fully document the results of each contact with the patient, the system should feature unlimited note capacity.

Account inquiry menu. More sophisticated systems provide several ways to locate a patient account in the computer files. For example, if John Smith inquires about his account, staff members can retrieve the correct file by keying in a Social Security number, home address, or telephone number. Some systems allow operators to make a phonetic search if the spelling of the patient's name is unknown.

Date tracking. The system should notify the patient accounts manager when a promised payment fails to arrive or the next contact should be made.

Predictive dialing. Some systems can be connected to predictive dialing equipment, shielding account representatives from "no answers" and busy signals.

With predictive dialing equipment, the computer automatically dials each account in priority sequence until it detects an answer at the other end. When this occurs, the appropriate account records appear on the representative's screen.

Some hospitals handle low balance accounts exclusively through predictive dialing, so that no human intervention is required. In this scenario, the computer dials the number and leaves a recorded message about the overdue account.

Ease of use. Some software is menu driven and interactive. This means that the system tells account representatives what to do, step by step. If they make a mistake, the system will tell them what they did wrong and how to correct it. As a result, training time and costs are reduced.

Evaluating systems

Once a hospital chooses to automate, the next decision involves either developing the software in-house or purchasing it off the shelf. If a hospital has the in-house expertise, it should consider how long the project may take and what other projects it may displace. As a rule of thumb, if a commercial package offers 75 percent to 90 percent of the desired functions, it will be more cost effective.

Typical guidelines for evaluating any computer system also apply. Research on vendors' backgrounds should be completed.