The Economics of Automating Your Medical Office, Do the Math - The Results Are Compelling

Bankers don't make many routine withdrawalsOffice business, they will have to embrace more
and deposits; they have the ATM and Internetintegrated technology with dissimilar and
Banking. Banks are not open late at night orcompeting systems if they want to remain viable
weekends. ATMs are. Internet Banking Systemin the immediate future. And we are seeing an
are. Bankers don't manually record inter-bank andaccelerating trend among some vendors to
intra-bank transfers. They have sophisticated EDIcollaborate on moving vital data between their
systems that make all the transfers, record alldifferent systems. One alternative is to use an
the deposits and withdrawals, and make all theoutside consultant to develop and implement data
payments. Banks did the math and made goodexchange among your particular systems. This
business decisions.can be very effective because it addresses your
Bankers DO make loans, they set up newspecific needs. It can also be somewhat
accounts, they do the research and solveexpensive. Do the math.
problems that cannot be handled by their ATM,In the late 1980's fax machines began to be
Internet Banking or EDI systems.readily available in most large offices and some
What do Medical Offices and Clinics have?smaller offices. By the mid 1990's fax machines
Electronic claims, electronic remit posting, EFTwere a necessity in nearly every business,
(Electronic Funds Transfer), electronic exchangeespecially medical offices, and they were
of lab information and other data among internaleverywhere including many homes.
and external systems, electronic data conversionsA few years ago data conversions were seldom
(for billing information, medical record data anddone in medium to small medical offices. When
every type of captured image). How many ofpurchasing a new system, Office Managers were
these do you have?told to start fresh with the new system and not
Filing claims electronically incorporatesfuss with a conversion. Just add demographic and
clearinghouse services, automated scrubbers andinsurance information as patients came in for their
computerized editors to check each claim againstfirst visit after the new system was installed and
a myriad of "rules" and quickly get that claim torun out the Accounts Receivable on the old
the right insurance company. On the return sidesystem.
Electronic Remit Posting will record payments withToday it is unacceptable to give up patient history
fanatic accuracy and in only a fraction of the timethat has been accumulated over many years.
it would take to do the same task manually.Medical offices are just too busy to enter all that
Electronic Funds Transfer (EFT) options get thedata by hand, again, when it is available
money in the bank 7-10 days earlier than whenelectronically.
paper checks are used. EFT never forgets toThe need and requirement for Electronic Medical
make the deposit.Record (EMR) systems is increasing dramatically.
If you are not sure about the Economics ofFor clinics that have an existing EMR system, an
Automation in your office, i.e. getting your versionelectronic data conversion is essential. It is beyond
of an ATM, do the MATH.practicality to attempt to manually load Medical
For example, studies show it takes about 5Record information a second time. It is a waste
minutes to post a claim manually and less than 30of time and money to rescan and reload
seconds to post a claim electronically, and thatthousands of Images.
includes time for verification. Similar statistics areMany, if not most, medical offices file claims
available for data conversions, database interfaceselectronically while most continue to post remits
and electronic claims filing. Do your own study.by hand. That is rapidly changing and yet some
Then do the math. The results will be compelling.software vendors have not yet provided a way
Even without accounting for manual errors, theto electronically post remits. Getting an outside
cost savings will be obvious.vendor or consultant to provide this service is
Every year those comparisons will become evenusually cost prohibitive.
more compelling. Why? Claims filing rules are beingAnother obstacle experienced by clinics is
added and made more complicated. Insuranceobtaining the electronic remit files (ANSII 835)
companies are finding more ways to deny claimsfrom insurance carriers. Experience shows that
and are doing it electronically. The informationpayers only return electronic remits for 60-70%
required to maintain an average patient record isof claims they receive electronically (ANSII 837).
enormous compared to a few years ago. It willChoose carefully the clearing house you use to file
continue to grow, dramatically increasing the needclaims. Ask the questions, do the math and make
for an electronic data conversion or an integrateda good business decision.
interface whenever a new system is added.With all the computerized systems available now
Other examples could be cited but the point isand growing in number almost daily, the wisdom
clear, automation in the Medical Office is anof capturing data once and moving it electronically
essential component for efficiency and profitability.from system to system is an economic
Do the math.necessity.
The medical office simply cannot keep upIf your software company does not offer cost
manually. More is being demanded of goodeffective and accurate exchange of data in all
employees every day and that trend will continue.their varied forms among dissimilar systems, look
Good employees want meaningful jobs, notfor a company that does. Embracing data
mundane data entry work. Manual errors areinterchange is a "must have" in the software
more costly today than they were last year andvendor you choose.
will increase in cost again next year. ReducingWhether you are buying or selling computer
manual and redundant data entry, in any form, issoftware, the Economics of Automating the
of paramount importance in the increasinglyMedical Office strongly favor adding automated
narrow margins facing the modern medical office.systems where ever practical and obtaining or
As for software vendors competing for Medicalproviding integration among all systems.