Stability; an interesting choice of words when talking about behavioral health. It’s also apt because stability is a measure of good health and that’s exactly what healthcare providers want for their patients, and what accountants want for their clients.
Come with us as we explore financial stability in behavioral health.
- Unique Financial Challenges in Behavioral Health
If anything in life is complex, it’s the human brain. It’s almost as complex as the financial requirements behavioral health practices have to contend with every day. Multiple funding sources include insurance reimbursements, grants, and private patients. So that’s tricky.
High staff turnover rates will do your head in if you’re managing payroll and recruitment costs. Hanging on to clients is also a challenge that pokes fun at consistent revenue streams
Don’t even mention regulations (HIPAA) that apply to handling financial data.
It’s a minefield pockmarked by no-shows and cancellations. It makes accurate financial management a bit of a miracle.
- Optimizing Billing and Coding for Behavioral Health
If ciphers are your thing, you might be attracted to accounting for behavioral health practices because it uses specialized codes. They’re not there to be cracked, however, so, maybe not.
Codes specify the type of therapy and treatment plans for each patient. They’re very handy because they simplify invoicing, especially for insurance purposes.
Provided they’re entered correctly. If not, well, welcome to the jungle. Mistakes delay reimbursements, which impacts cash flow, and gives you sleepless nights. Ensure your staff are properly trained to use billing software and avoid mistakes and claims denied. They can also answer patient’s questions about outstanding amounts and, ideally, avoid disputes.
- Accounts Receivable for Steady Cash Flow
Accounting software, like Sage Intacct, is brilliant for managing accounts receivable and staying on top of overdue invoices. Software enables you to set up flexible payment plans to make it easier for patients to settle their accounts. Set up automated reminders to inform patients their bill is overdue.
Software also tracks payments and does something else super-handy. It integrates with electronic health records (EHRs) to accuracy.
You really need legally compliant policies in place for handling unpaid bills. You’re clear, your staff is clear, your patients are clear, and your accountants are clear about what happens to overdue accounts, regarding collection and cutting your losses by writing off hopeless cases.
- Effective Payroll Management for High-Turnover Roles
Payroll software gives behavioral health practitioners peace of mind knowing that, while turnover might be high, payroll processes are so streamlined that it really doesn’t matter – at least not from an accounts perspective, but you might want to do some exit interviews in case it isn’t them, it’s you.
Why is payroll software so cool?
It comes with self-service options, so employees are accountable for their payroll management. You can choose your preferred payment options; hourly, weekly or monthly, and can also set the system to accommodate full-time, part-time, and contract staff.
The accuracy is, of course, exemplary.
- Grant Management and Funding Compliance
Perhaps you’re lucky enough to receive grants to fund your practice, at least in part. However, grants have unique financial compliance requirements, especially when it comes to tracking payments. It’s essential to keep clear records for reporting requirements and to clearly log all relevant documents, just in case you’re audited.
And if you’re not audited (yay), you need to keep accurate records to prove how wisely you’re spending the grant money, so that you continue to be eligible for grant funding. Software tracks grant spending and measures it against the budget to keep you accountable for every cent.
- Tracking Key Performance Indicators (KPIs) for Behavioral Health
It’s kinda important to set KPIs early on when you’re establishing your practice. That way you can measure your success from the very start – and that’s very satisfying. KPIs typically include patient retention rate, average treatment length, and revenue per client.
You should also track yucky KPIs, like appointment no-shows. It might require an easy fix, like asking your receptionist to be nicer when talking to clients on the phone.
Remember to include staff productivity KPIs, like net revenue per employee. A little training could boost productivity and performance.
Review your KPIs regularly to ensure you’re optimizing all your resources and are on track to meet your long-term goals.
- The Benefits of Outsourcing Financial Management in Behavioral Health
Outsourcing. We do so love outsourcing. It’s our bread and butter, yes, but we’re also pretty altruistic. We want to reduce the burden that accounting and payroll management places on your shoulders. We want to ensure you are always compliant with regulations and requirements to avoid penalties and keep funding coming in.
We really want to offer our expertise in behavioral healthcare accounting, so you don’t have to worry about regular financial reporting or extracting insights from data analytics. Do you know what else is great about outsourcing to LWI? You can scale your services to suit your precise needs at this very moment – and into the future.
Closing
How do you measure up? Is your practice steady and stable and raring to go? Or … not? You don’t want to risk mayhem when the inmates take over the facility. Nah, take a closer look at the benefits of outsourcing and then give us a call. It really is the only sane solution available to you.
