3 min read

2011 Blogs in Review – The Role that IT Plays

By Prime Care Tech Marketing on Thu, Dec 22, 2011 @ 05:42 PM

Be nimble with Information Technology, Survive with ITOver the last several months, this blog has covered topics focusing on various aspects of IT and its impact on long term care. In our Thanksgiving Day blog, we observed how important IT has become to all of us – in how we work, how we communicate, how we entertain, how we educate, how we conduct business; IT is everywhere. Although slow in adopting technology, LTC providers have made significant progress in understanding, valuing, and embracing IT as a powerful tool to meet ever-changing challenges. For example, twice we demonstrated this fact as we momentarily digressed from IT-specific topics to alert readers about changes to billing therapy services to Medicare and avoiding workforce-related lawsuits.

These are trying and potentially dangerous times for the economy in general and long term care in particular. The vital role that IT can play in helping LTC providers survive reminds me of the African gazelle. The gazelle can reach a peak speed of 48-50 mph outpacing many of its predators. However, the cheetah can reach 0 to 60 mph in about 3.3 seconds with a top speed of 70 mph. You do the math. Since gazelles are a favorite meal for cheetahs, the difference between life and death is sustainability vs. spurts of brilliance. Cheetahs can only sustain such high speeds in bursts; gazelles on the other hand can maintain their top speed for miles. They can also make sharper turns and initiate quick changes of direction with minimal reduction in speed. Cheetahs cannot. Although slower, gazelles have the advantage if they are alert, sure-footed, and responsive to threats and opportunities.

Likewise, to survive and thrive, to outpace the “cheetah’s” of poor reputation, burdensome and sometimes conflicting regulation, competition, and reduced reimbursement, LTC providers must be on guard, quick to respond, and nimble. However, they also need vision. To blindly charge day-to-day into the fray without a clear understanding of what is going on around them and within their operations, can be suicidal. Data mining and business intelligence can help providers discover, discern, and act on the data they already have. In real time, digital dashboards can reveal business-critical information (Key Performance Indicators – KPIs) displayed in ways that easy to understand.

In 2011, we also discussed how important protection of your IT assets and data is and why disaster plans must include IT. “After the fact” is too late. Also, IT asset management (ITAM) can help providers to track and protect their IT assets, use, and storage.

Just over the horizon loom major changes in health care, ACOs being one of those changes. The significance of ACOs to IT in long term care can be found in the need for interoperability and IT infrastructure. Whether ACO’s pose a threat or an opportunity will depend on the specific market served and the provider’s willingness and ability to respond. Being uninformed and ill prepared is like a deer facing on-coming headlights. The prospect of becoming health care road kill is not appealing.

Question: IT is here to stay, are you on board? In what ways has IT helped your operation?

Topics: IT business intelligence dashboard ACOs disaster recovery IT asset management ITAM Part A Therapy Services
2 min read

Making the most of Medicare cuts – back to the basics (Part 1)

By Rusty Zosel on Thu, Dec 22, 2011 @ 08:00 AM

iStock_000016349390XSmall1-resized-600The impact of the 11.1% cut to Medicare reimbursement on long term care providers across the country has been substantial. With revenues down margins are tight, very tight. To discover ways to reduce waste and get the most from the dollar expended, providers are examining every facet of their operations, including procurement. While labor may represent the bulk of its expenses, a company also needs to review its procurement practices, contract terms, pricing points, and price protection regularly. In this day and age, every penny counts.

In the this first of a two-part blog, I'll share with you some salient savings opportunities that we recommend and which are concisely mentioned in an article I found recently online, Procurement Savings – Ways to Increase Your Profits. I’ve somewhat paraphrased the content.

1. Review supplier’s terms and discounts.
You should have a Master Agreement with all suppliers. As partners, you and your suppliers may achieve procurement savings by altering your purchasing patterns. By purchasing slightly more products less frequently, you may automatically receive a better discount.  If you are using outside contract management or GPOs (Group Purchasing Organizations), you may also want to review those resources and any agreement they have with you, along with their contracts and pricing with the vendors or product categories in which they are being utilized.  

2. Consolidate suppliers and deliveries.
Savings in delivery charges and the costs of accepting those deliveries can result when you consolidate deliveries. In some cases, it may make sense to consolidate what you purchase from which suppliers. It may be more convenient to purchase from a local vendor, however, like the neighborhood hardware store, “convenience” can become a black hole for your cash. Also, by consolidating suppliers, costs related to processing purchase orders and invoices can also decline.

3. Consolidate purchasing requests and intervals.
By consolidating your orders and reducing their frequency, you can reduce delivery and documentation processing costs.

4. Review purchasing requirements.
This ensures that only strictly necessary purchases are made. It will cut down on excess costs and storage costs.

5. Purchase from agreed catalogues.
Combined with #2 above, purchasing from catalogues specifically negotiated for your company containing specific brands or types of a product will result in savings. As mentioned above a greater volume of orders from one vendor can result in deeper discounts.

6. Review stock levels. 
With consolidation and the advice to buy in greater volume must be tempered by sound inventory control practices.

7. Review purchased products specifications. 
What may have been ideal a while ago may have been superseded by an item or class of items that function better at a cheaper price.

In Part 2, we'll conclude with the rest of these critical savings opportunities. In the meantime, I wish you and yours a very Merry Christmas!

Topics: Procurement Automation Medicare cuts consolidate purchase requests and intervals consolidate suppliers and deliveries purchase from agreed catalogues review purchasing requirements terms and discounts review purchased products specifications automated procurement process raise stock levels
2 min read

No Lunch, No Pay, No Way – Avoiding a Lawsuit

By Prime Care Tech Marketing on Wed, Dec 07, 2011 @ 08:04 PM

time and attendanceA recent article in the Nashville Post cited a lawsuit filed against a local nursing home by a former employee over lunch break pay policies. But, what does this have to do with IT?

A little background: As policy, some long term care companies automatically deduct 30 minutes from employees’ time worked to cover meal breaks even when the reality is that many are unable to take their full thirty-minute lunch break or habitually don’t take the full 30 minutes. As a result, facilities, like the one cited in the article, No lunch leads to lawsuit, are exposed to potential legal action.

Some employees don’t get to take a lunch break or are not allowed to because of the workload. (Interesting to note, some conscientious employees object to having to rigorously adhere to taking a full 30-minute meal break, because they want to be back on the floor and not let work get further behind. Just sitting around for the full thirty minutes is torture to them.) If a facility automatically deducts 30 minutes for a meal break, management needs to monitor this carefully to make sure that employees indeed take their lunch break.

The ramifications of a decision in favor of a plaintiff could be significant. If the court found the facility in violation of the law, the facility would have to pay the plaintiff for meal breaks not taken. Further, the plaintiff’s attorneys in the above-referenced case are seeking a class-action status for the complaint. That means the facility may have to pay wages owed to all staff who didn’t fully take their meal breaks, possibly even if they are no longer employed by the facility. The cost to the facility for such a decision not only would include the back wages owed and legal fees, but also the time and expense required to audit payroll records as stipulated by the court.

  • Are you automatically deducting 30 minutes for a meal break?
  • Are your employees taking the full thirty minutes? Are you sure?
  • Does your Time and Attendance application enable you to manage meal breaks?

If you are not certain or there is room for reasonable doubt, call PCT. We can help you find a solution that will help you to monitor this and ensure compliance with applicable state laws and the Fair Labor Standards Act. Certainly, you should consult your HR specialists and legal counsel regarding your existing policies and best practices.

Topics: time and attendance nursing home time and attendance application
1 min read

IT helps make Thanksgiving Day a special day!

By Prime Care Tech Marketing on Wed, Nov 23, 2011 @ 05:13 PM

Thanksgiving and Information TechnologyI know it’s late in the day and many of you are already heading to your turkey feast destination or making last-minute preparations, but I think expressing gratitude is never too late - or too early for that matter. First, if not for the vision, talent, dedication, and hard work of so many, we would not enjoy the explosion of opportunities that information technology offers us. Whether it’s for entertainment, checking on one’s health, mining data, checking on the weather or road conditions, tracking finances, operating a business, promoting ideas, products, and services, or just meeting or reconnecting with friends, IT is everywhere. Some may argue that IT may have complicated our lives, but in the long run, our lives, our play, our work, even our worship have been positively impacted and enriched. For this, we should be very grateful.

Further, our PCT’s team expresses our sincerest gratitude to our customers and partners. We have seen phenomenal growth over the last year and without them, we could not be where are today and will be going forward.

Lastly, to our team members, thank you for your dedication, hard work, and sacrifice in serving our customers and supporting one another. That’s what makes this company work.

Happy Thanksgiving!

Topics: IT information technology mining data customers partners
2 min read

Getting Paid for Part A Therapy Services

By Prime Care Tech Marketing on Tue, Nov 15, 2011 @ 06:19 PM

Billing Medicare Part A for Ancillary Therapy Services - a change in what units represent

Focusing on Medicare’s coverage and payment for ancillary therapy services,Proper Therapy Unit Codes Transmittal 2239 (CMS Manual, Pub 100-04 Medicare Claims Processing, issued June 14, 2011, Billing SNF PPS Services, 30.4 - Coding PPS Bills for Ancillary Services) states, effective August 1, 2011, “For therapy services, that is revenue codes 042x, 043x, and 044x, units represent the number of calendar days of therapy provided.  For example, if the beneficiary received physical therapy, occupational therapy and speech-language pathology on May 1, that would be considered one calendar day and would be billed as one unit.” (Italics added.)

In other words, for each day a Medicare patient receives a therapy service, providers must record that as one unit. In the past, the number of units reported on a claim reflected the number of treatments provided. That is no longer the case. The new policy stipulates that units of therapy should tie to the number of days the patient received therapy services, NOT the number of treatments. For codes 042x, 043x, and 044x, providers are to record the total number of days a resident received therapy treatments as one unit for each day. Providers can look at this as an “on/off switch,” “yes or no” answer. Did the resident receive PT today? If, “yes,” then record 1 unit. If a resident had 16 days of physical therapy treatments, for example, the 042x revenue code should indicate 16 units. The aggregate of the total units/days of therapy services received would be recorded on the claim. 

The transmittal further stipulates that “SNFs are required to report the actual charge for each line item, in Total Charges.” The total should reflect the charges for actual treatments received as determined by your facility’s/company’s charge master and recorded in the Total Charges field.

Questions

If you are using a clinical software application for documenting therapy services, does it automatically convert days of service to units to be recorded in aggregate on the claim while recording the charges based on the quantity of treatments?

What changes were necessary for you to comply with this regulatory change?

With the hiring of Ms. Becky Bos and Ms. Kimberly Kelly, PCT offers enhanced Revenue Management Consulting Services to long term care providers. Cuts in Medicare and Medicaid services have forced providers to effectively maximize and capture the revenue they are able generate. Becky and Kimberly have extensive experience and expertise in working with large multi-facility corporations and small regional providers to identify and collect the cash owed. This is the first in a series of articles in which Becky and Kimberly share their collective wisdom regarding sound billing and collection practices providers can employ.

Topics: Part A Therapy Services therapy units transmittal 2239 042x 043x 044x therapy codes Medicare Part A revenue cycle management

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