Tracking the Variables | Where is My Money II
Tracking the Variables | Where is My Money II
Physical Therapy Practice Owner Must Address Billing and Payment Delays
What variables affect how quickly Shannon gets paid?
Shannon was nervous. At her husband’s suggestion, she was meeting with Steve, a profitability coach, in an effort to find and address the cash flow problems she was experiencing in her physical therapy business. Although Steve came highly recommended by her friend Ariana, Shannon wasn’t sure just what he could do for her.
 Steve came by after hours, and they sat in the waiting room of Shannon’s practice.
 “Give it to me straight,†Shannon said after a brief bit of small talk. “What am I doing wrong?â€
 “It’s not quite that simple,†Steve replied. “But it starts with the fact that you trained to be a physical therapist, not a business owner. Not only that, but unlike other business owners, you have to rely on insurance companies for most of your income.â€
 “So it’s not just me?â€
 “Of course not,†Steve said with a laugh. “You’re hardly the only practice owner in this kind of situation. Ultimately, there are a number of variables that affect your billing performance and cash flow.â€
“So what can I do? Even when I’m crazy busy, it still feels like the money isn’t coming in like it should.â€
 “You can’t be expected to keep track of it all and still focus on your patients,†Steve said. “Think of it this way: Imagine a man who hurts his back, but he doesn’t seek treatment right away. What can happen?â€
 Shannon thought for a moment. “Well, depending on the nature of the injury, it can affect his gait. He may start overcompensating, which can cause other problems, in his hips, in his neck…â€
 “Now you’ve got the idea,” Steve said. It’s a domino effect. All of your billing issues stem from one basic problem – an inability to track and analyze all the variables that affect your collections. You need a powerful tool – personally, I recommend an advanced billing software package, one that’s customized for physical therapy practices – to do the work for you. After all, with each passing day, your chances of getting paid for an outstanding claim decreases by one percent. Software helps determine how each variable affects the timetable of your claims payments.â€
 “And once we know what causes the delays or denials,†said Shannon, catching on, “we can make the necessary changes to improve billing performance.â€
 “And then you’re on your way to building your dream practice,†Steve said.
What variables can affect how quickly and efficiently Shannon gets paid?
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