It seems like everyone is interested in Collection Rates. In fact, when I am talking with a prospective new client, it is one of the first things they ask about. It is important make sure everyone is using the same definition when trying to make comparisons. A true collection rate is determined by dividing actual dollars received by the total amount billed. For example:

Billed = $10,000 Received = $6,500 Collection rate = 65%

However, some folks prefer to use a 'net collection rate' in which the 'Billed' amount is reduced by the 'Disallowed' amount (the amount determined by Medicare and Medicaid which cannot be collected either from them or the patient.) Using the same example, but with Medicare and Medicaid disallowing $2,000 results in a collection rate of 81.25% Receipts/(Billed - Disallowed)

You can see that there is a significant difference between the two, even though the bottom line money in the bank is exactly the same.

There are two main factors which effect your collection rate. The first is your coverage area demographics. If you have a high percentage of Medicare and Medicaid patients, you will tend to have lower collections than if you have a younger and/or more affluent base. There's not a lot you can do about your demographics, but it is important to know your blend when it comes time to make budget projections.

The second major factor is the rates you charge for your services. The more you are above what Medicare and Medicaid allow, the lower your collection rate will be. For example, one EMS provider charges $800.00 for an ALS transport, while another charges $500.00 For sake of illustration, we will assume a Medicare payment with Medicare allowing $400.00 In the first case, the provider would be receiving 62.5% while in the second case, the provider would be receiving 80%, even though they each received the same amount of actual dollars. The bottom line is that collection rates are interesting and can be very useful for budget projections, but the user must understand the underlying data.

Thank you to everyone who stopped by our booth at the WSAFC Annual Fire Chiefs Conference in Wenatchee. It's always a great time and from the number of sun burns we saw, it looks like you all had a great time also.

Our 'unique' give away this year was packets of 'Pocket Duct Tape', appropriately emblazoned with our logo. We've had lots of feedback on how people are planning on using them. Many individuals plan on taping over someone's mouth - a spouse, boss, co- worker, etc. I've also heard of someone using it to fix their golf bag and another person used it to secure their luggage at the airport. I actually had an opportunity to offer my assistance with the duct tape at a wedding this past weekend, when the bride noticed a small rip in her gown. (She politely declined my offer.) Let us know how you use it and if it is unique and interesting we may even publish it in this newsletter. Oh, the fame and glory!

As many of you are aware, there have been ongoing problems with getting claims paid by the VA Hospital Administration. Due to internal problems at the VA, we have had to resubmit most claims 4 or 5 times. Then, the VA still calls us requesting information which has already been supplied to them many times also.

Finally, some good news. After over a year of haranguing and negotiation, they have finally been able to set up a system by which your claims should be paid in a much more timely fashion. This month we are scheduled to receive over $40,000 for our client's unpaid VA claims. They will be addressing many thousands of dollars more in the coming months. More importantly, we are optimistic that this new process will greatly reduce your VA claims processing time. A special thank you goes to Lisa Rogalsky, our Billing Services Supervisor for going up against the VA 'Goliath'.

Cindy Tomeo
- Account Manager
Cindy has been with Systems Design since 1998. Although she came on board with very little expertise in the medical billing field, her other experience and excellent work ethic made her a valuable addition to the staff. Learning quickly, she has become one of the most knowledgeable employees and can often be found sharing her expertise with other staff members. Cindy is the Account Manager for Marysville Fire, Mountlake Terrace Fire and Jefferson FPD 3.

When Cindy is not in the office, she likes to spend her time in many church activities and making use of her ever present camera.

After a particularly poor game of golf, a popular club member skipped the clubhouse and started to go home. As he was walking to the parking lot to get his car, a policeman stopped him and asked, "Did you tee off on the sixteenth hole about twenty minutes ago?"

"Yes," the golfer responded.

"Did you happen to hook your ball so that it went over the trees and off the course?"

"Yes, I did. How did you know?" he asked.

"Well," said the policeman very seriously, "Your ball flew out onto the highway and crashed through a driver's windshield. The car went out of control, crashing into five other cars and a fire truck. The fire truck couldn't make it to the fire, and the building burned down. So, what are you going to do about it?"

The golfer thought it over carefully and responded... "I think I'll close my stance a little bit, tighten my grip and lower my right thumb."

Please help us out. When giving out our phone number to patients who have a question about their bill, please use the following numbers. They ring directly into the billing department so they will be helped faster.
(360) 613-1627 or (800) 238-9398