Archive for the ‘Practice Management’ Category

Why Your Stitches Cost $1,500

July 20, 2011

Courtesy: MedicalBillingandCoding.org

Advertisements

How can you manage your patients’ prescription refill requests effectively?

December 22, 2010

PrescriptionWhat are the most costly work flows in your medical practice operations?  Most probably, your answer will revolve around the telephone – wrangling telephone calls, messages, faxes, prescription refill requests, and managing the resultant paper trail.  This creates a massive burden for clinical support staff and physicians.

Along with that administrative burden, is cost. According to the University of Minnesota and the Medical Group Management Association (MGMA) Center for Research, the total time spent on the telephone managing prescriptions approached 350 hours per full-time equivalent physician in 2004. That calculated out to nearly $16,000 annually per FTE physician.

The following table summarizes the annual time and cost spent per FTE physician, on tasks related to the prescribing function:

Per FTE physician

Hours per year

Cost per year
Support staff time on phone with pharmacies — formulary

25.8

$375

Support staff time on phone with pharmacies — Rx substitutions (generic)

23.7

$344

Support staff time on phone with pharmacies — Rx refills

133.0

$1,929

Support staff time on phone with pharmacies — other issues

26.9

$390

Physician time on phone with pharmacies — formulary issues

15.7

$1,570

Physician time on phone with pharmacies — Rx substitutions (generic)

14.4

$1,442

Physician time on phone with pharmacies — Rx refills

80.8

$8,083

Physician time on phone with pharmacies — other

16.4

$1,636

Total Annual Time/Cost

336.7

$15,769

The majority of these calls and costs are self-inflicted. Consider this example: A patient returns to your practice for his annual exam. The patient has been taking medication to control his elevated cholesterol levels, which have been stable for several years. You renew the prescription for 90 days and order a follow-up visit in 12 months.

But, what happens 89 days later? Your practice receives a telephone call requesting a prescription renewal. If the duration of the prescription equaled the time frame for the follow-up visit, that telephone call would likely not happen – allowing support staff to spend their time directly supporting the physicians.

So, good planning and carefully documented policy changes can increase administrative efficiency and cut down on self-inflicted extra work.

According to MGMA, the best way to change prescribing behaviors is to implement a system of check points:

[  ] Prescribe enough refills of a chronic medication (when possible) to last until the next follow-up appointment; 

[  ] Train nursing staff to monitor the prescription duration;

[  ] Train check-out staff to verify that the patient’s prescription will last until the next follow-up appointment (since they are scheduling that appointment or creating a patient reminder task);

[  ] Use e-prescribing functions that are embedded within the EHR to quickly view when the patient’s prescription will expire; and

[  ] Explore alert functions that can inform you when the follow-up visit extends beyond the duration of the prescription.



Source: MGMA

Price Tag on Time Spent with Insurers

February 26, 2010

Practice Cost for Participating in Health Plan

The time a practice spends dealing with health plans’ administrative requirements, and thus the costs involved, varies by specialty and size. Here are selected means for 2006, as reported by Health Affairs.

1-2 doctors 3-9 doctors 10+ doctors Weighted mean
Physician time $72,675 $63,611 $57,480 $64,859
Medical specialty $70,788 $87,566 $78,553 $78,913
Surgical specialty $61,187 $76,429 $59,866 $66,954

Source: “What Does It Cost Physician Practices To Interact With Health Insurance Plans?” Health Affairs, May 14.

…Cost broken down by Physician, Nursing and Office Staff.

1-2 doctors 3-9 doctors 10+ doctors Weighted mean
Physician time
Primary care $16,864 $12,858 $11,118 $13,691
Medical specialist $23,083 $20,850 $18,014 $20,497
Surgical specialist $15,197 $18,091 $16,814 $16,669
Nurse time
Primary care $16,079 $25,142 $25,618 $22,254
Medical specialty $13,279 $29,000 $24,731 $22,449
Surgical specialty $13,328 $26,391 $20,426 $19,935
Clerical staff time
Primary care $31,666 $21,833 $17,918 $23,980
Medical specialty $27,595 $32,411 $20,038 $26,279
Surgical specialty $27,977 $29,118 $19,180 $26,650

Note: time spent by senior administrators, lawyers and accountants is not included in this table.

Source: “What Does It Cost Physician Practices To Interact With Health Insurance Plans?” Health Affairs, May 14.

edical specialty

%d bloggers like this: