The improvement of the reimbursement rate up to 82 percent in 2003 correlated with the purchase of the practice management and medical billing software. However, as the practice became busier, and the oversight decreased, the decline in reimbursement rate was again apparent in 2004.

IK Technologies provided these solutions:

• Practice analysis performed, which identified problems, determined deficiencies and established a recovery plan.
• Backlogged claims processed
• Staff training was trained, re-oriented, and relieved of billing responsibilities.
• Using the existing software, all subsequent billing functions were taken over, including claims submissions, EOB analysis, updating patient data, patient eligibility verification, denial analysis and resubmissions, post-payment submissions to secondary insurance, and telephone contact with insurance companies whenever necessary.

Result

• Improvement of reimbursement rate to: 98.9 %.
• Amount billed: $435,800
• Amount collected: $431,006
• New overhead expenses: $148,960
• Change in overhead expenses +$12,420(Including Start Script charges and reductions in staffing expenses)
• Previous “take-home” pre-tax income: $207,742
• New “take-home” pre-tax income: $282,046
• Increase in personal income: $73,304

Benefits

• Dr. Sinclair’s personal income rose by $73,304, which amounts to an increase of 36 percent.
• The need for oversight was reduced significantly, and Dr. Sinclair could use the little time to oversee clinical matters in her office, rather than billing.
• The fluctuations associated with frequent employee turnover were eliminated, as was the cost of training new employees in medical billing practices. Additionally, the reimbursements were no longer subject to the whims of undedicated staff that never stayed past 4pm to re-submit a claim or call the insurance company for verification.
• Patient and staff satisfaction was also noted to be higher, with a more organized office, and decreased telephone hold times.