Bill Klaproth (host): This is Amos on the go.
I'm Bill Klaproth and I'm pleased to welcome with me Vanessa Mold.
Devon, head of RCM Strategy at the automation platform.
Magical.
Vanessa has spent her career in the heart of healthcare revenue cycle operations.
And she is here to talk with us about revenue leakage in OMS practices.
Vanessa, welcome.
Vanessa Moldovan: Hi.
Thank you so much, bill for having me.
Bill Klaproth (host): Absolutely.
Great to talk with you.
So let's start with this.
What exactly is revenue leakage, if you could explain that to us.
And how does it typically show up in OMS practices?
Vanessa Moldovan: Yeah, so revenue leakage is kind of.
Different than what we would typically look at in a practice of like, money
that's hard to collect or something.
So it's not like a denial, a straight out denial or like missing
payments or something like that.
Revenue leakage is money That is there for the practice to collect,
but oftentimes goes unnoticed.
just like a leak, You know, it kind of sneaks through.
And if you're really not.
Looking for it, it'll be too late to collect it.
you won't be able to fix the problem in order to collect that money
that the organization has owned.
So that's kind of how it differentiates from like, accounts
receivable or outstanding ar.
Is that, is it kind of seeps through?
It can go unnoticed and, And in ways you have to be kind of creative
in figuring out where is it that we could be missing revenue?
And then in, OMS practices in particular, as you said, you know,
I've been in revenue cycle for a long time, so across all kinds of
specialties, I don't know that, OMS, oral am maxillofacial surgery, right.
Has, In, particularly in their revenue cycle, something that's different from
other, revenue cycles, what they would have challenges with for revenue leakage.
A couple things that do stand out.
So things that are common right, would be underpayments.
we all need to be looking at our underpayments.
We need to be looking at, credits, unresolved rejections.
missed opportunities in coding, such as like modifiers,
missing charges, undercoating.
And so I would say specifically for the OMS world because they
do a lot of surgery, right?
Is.
Really concentrating.
What would be specific to that specialty is the coding.
So missed opportunities because we're not trending or we're not
tracking root causes in, our coding.
Not just, all throughout the revenue cycle, but especially in the coding.
'cause it's complex coding And so we wanna make sure that we're
not missing those modifiers.
That were appropriately, You know, looking at bundling and stuff like that.
So one thing to really, keep in mind with, keeping track of that
revenue and making sure it doesn't leak is that, it's not big things.
oftentimes it's these small repeated things that we're doing that can just have
this, slow financial bleed and it's like.
Before you know it, we've lost, revenue.
So, really needing to think outside the box of that typical operational, causes,
in order to, look at the revenue leakage.
Bill Klaproth (host): Just like a leak.
It's kind of a drip, drip, drip of loss.
Basically, as you said, it is not the big miss.
It's, it's these small repeated things that add up.
Okay, so you were talking about coding or billing errors is one
of the main reasons of this.
Can you share some common examples of coding errors that
contribute to revenue loss?
Vanessa Moldovan: Yeah, absolutely.
So some of the most common are, failure to, capture, missed revenue.
So, procedures that are actually documented in the, operational notes.
In the operative report or in the, visit note, so we're missing that documentation
and why that's really common these days is like, now EMRs have been around for
a long time, but, it's really, really common that the clinician, so the
provider, the clinical provider, the surgeon, they're the ones who are choosing
their CPT codes or their billing codes.
So that's very common.
And so what can happen is because they aren't, certified trained coders,
what can happen is they actually miss.
opportunities of something that they performed that can actually be billed.
And so it's really important that we're actually reviewing that documentation even
after a, provider has chosen those codes.
so that's what we would refer to as missing charges, right?
So, Another common is undercoating.
sometimes, we have, providers and coders out there who can be kind of conservative
And so because they're concerned like, oh, I don't wanna get audited.
You know, I don't want, a payer to think that I'm trying to
get too much money out of them.
They might under code, and where they could actually be
getting, more reimbursement.
They're being a little bit conservative, so that's pretty common too.
incorrect usage of modifiers is also really common.
So there are some modifiers that we use a lot, especially in, surgical
coding, like, uh, modifiers 59, 79, 51.
And if they aren't used appropriately, you can definitely miss.
Revenue.
And it is definitely that kind of revenue that can go just, under the
bridge and you're not gonna notice it.
because those types of, usages you have to review the documentation
in order to make the decision.
So sometimes it can be really tough to identify with, some of the current,
maybe more antiquated automations that we have to catch errors.
Another thing too.
So kind of on that billing side, some very common examples, that can contribute
to revenue loss is one is rejections.
So rejections are, those errors that sit in your clearing house.
So your payers have rejected So, it hasn't even gotten to the payer yet,
and That is, Something that we really need to be on the lookout for because
of the dangers of timely filing.
So, those who, work in the industry, you know, they know that if you don't get that
claim to the payer in a timely manner, you have no recourse to collect that revenue
and rejections are the most commonplace where you can run into that timely filing.
Like nobody wants a timely filing denial, but if you're not on the
lookout for them and you're not resolving them in a timely manner.
That's just a very commonplace that revenue can be, lost.
And then finally, I think that, one place that we can miss some revenue is over
reliance on software that we're using.
And, the reason that I bring this up is because we have been using technology for
a really long time to provide, additional efficiencies, additional effectiveness.
More productivity, relieving some burden for our, frontline
workers for our providers.
And I think sometimes we kind of, fix it and forget it, for lack of a better word.
And I think that it's important that we not rely too heavily.
Um, on some of that software and just make sure that we are using smart automation
that can fill in the gaps of some of the automation that may not be as smart.
And I can give you an example of what I mean is like, where I was saying
before about reviewing documentation to be sure that you've captured
all of those appropriate charges so that you get, all of that revenue.
you need really smart automation and really smart technology that can.
behave more like a coder would and can catch those missing charges.
So, Those are just some examples.
Bill Klaproth (host): Yeah, absolutely.
So a lot there, Vanessa Undercoating.
Incorrect modifiers.
Rejections, incorrect CPT codes.
So you talked about all those things.
So there's a lot of areas for an OMS practice to pay attention to.
So let's talk about the fix or what they can do to help
resolve some of these issues.
How can OMS teams then?
Identify and address this revenue leakage, before it becomes a, bigger problem.
how do they look and find these gaps and inconsistencies and
incorrect codes, et cetera?
Vanessa Moldovan: Yeah, absolutely.
And it's super important.
I think number one would be to conduct, regular audits within the organization
and not just coding audits, but we need to be conducting operational audits
from the time that the patient is making their appointment all the way to the
time that we're resolving that encounter.
You know, there's all kinds of processes within there that, and workflows and,
things that we're doing and they all need to have a really close look at them.
And, it's kind of from what I was saying earlier is that, revenue cycle, it may
seem like that it is just, so which is your coding and your billing, right?
That's your revenue cycle.
And it may seem like it's pretty straightforward.
Every organization has these workflows that are like in between
your typical, what we would say, like registration, coding, billing,
payment, posting, You know, Those are like your typical steps, right?
But in between all that, every single organization is doing all
kinds of, different workflows.
And Those are the, workflows where the revenue can really leak.
So it's important that, yes, of course we're taking a look at
coding, we're taking a look at payment posting, kind of those.
Bigger, operational, workflows, but we also need to be looking at those smaller
ones, and those kind of in-between ones.
and that's where you can usually find something where we're missing something.
the revenue is getting, through.
And then once you do those audits, right, we need to be sure that we're focusing on
those problem areas that you do discover.
It's like, okay, after you identify, then you also need to take action and be sure
that you are, being really smart about.
How you are putting fixes in place, right?
So we wanna make sure that we're utilizing, people and
we're utilizing technology.
We're being smarter and not working harder.
And we have to really be careful with this because oftentimes we'll go out and
we'll be like, okay, we think that this.
fix is actually going to make things better for us, but actually as we go down
the line, it kind of created something else, you know, further down the line.
So really being sure that you bring in all of your departments for bringing in
all the appropriate people, when making those decisions, and putting things in
place that, you're not creating more.
cracks and more leakage down the line.
another thing is that, just really be sure you know, I mentioned those rejections.
That's a really commonplace that we can lose revenue.
And so just be sure that you're reviewing those, responses and those
reports on a regular basis Again.
To find the trending, trending is really important.
cause that's really gonna show us, the good, bad And the ugly, right?
It's gonna show us our root causes.
It's gonna show us, where is that leakage, where are our problems?
and that's also going to allow us to be proactive, to prevent.
the leakage to prevent the problems.
because it is much better to be in an organization where we're being
proactive and not being reactive, because reactive is definitely where
you're gonna lose money, right?
We're gonna be able to keep more of our money if we're being proactive
and preventing these errors.
And then finally, it's important that you establish, KPIs, which
are key performance indicators.
and establish those benchmarks within your organization, so that you're able
to trend, like, how are we doing, right?
So how do you even know what is your measure of success?
you might be suspecting that you're losing revenue and you might.
Feel like, we're not making what we used to be making, but you really
can't know that for sure unless you're tracking data, which is in these
KPIs and is in these benchmarks.
So examples of those might be your clean claim rate.
Your denial rates, your first pass resolution rates, your charge lag time.
I mean, Literally there's so many KPIs.
But what's important is, that you look at your organization and
you're like, okay, what are the areas of opportunity that we have?
And Those are the KPIs that we wanna track, And we wanna track and trend
them really on a regular basis.
And some KPIs.
You're gonna look at daily, some, you're gonna look at weekly,
You know, monthly quarters.
So they all have these different, timelines that you look at.
But That is so, so, so important to embrace your data and use it
to empower you to really, prevent, losing revenue in the organization.
Bill Klaproth (host): So many KPIs, so little time.
that's what I like to say.
so much there, Vanessa.
You know, regular operational audits, as you said, make sure you, you are
reviewing those rejection reports and establish those KPIs like you were talking
about, And then take action and you said be smart and how you put the fix.
In place.
So when OMSs don't do that, when practices don't proactively address
some of these revenue leakage concerns, tell us what is the potential
consequence then that they might face?
Vanessa Moldovan: I mean, you could, be, subject to audits from payers.
you could be subject to audits from other organizations that you work with.
So maybe, you have surgeons who work inside of other facilities,
You know, ASCs or hospitals.
They might.
audit the work that you're doing.
also you might get refund requests from, payers because they do audits
on their end and they're like, Hey, something's going on here.
So, and a refund request, it does not feel great to give money back.
doesn't feel great to get a, post-payment audit either.
which basically means they're requesting your documentation.
They're requesting all of your billing information and, making sure
that the money that they paid out.
Really was accurate.
because, I'm sure you know, if it isn't documented then we can't, bill it And
we shouldn't be getting reimbursed for it if it wasn't documented.
So Those are a couple of ways that it'll kind of manifest, some of these,
it continuing to have these errors.
and it's just really, important and I mentioned this earlier, it's really,
really, really important to be proactive.
First of all, if you are.
Receiving refund requests you are receiving, post-payment audits.
I just wanna say first and foremost, do not panic.
just because they're requesting to audit or they're requesting for money back
does not mean that they're correct, take a look at what they're saying.
They could be wrong.
they're just checking it out.
They just wanna make sure that they paid out that money correctly.
I mean, they don't wanna lose money either.
They're there to make a profit.
So don't panic.
get your resources together, get your, experts together to help you with
those requests from the organizations.
And also, frankly, there's a lot to learn from that as well.
you may totally have not been aware that maybe there was a payer policy that you
missed and you weren't following, and when you get that post-payment audit.
You learn from that, right?
So it's not all like horrible, horrible.
And so, first of all, don't panic, be calm, but to prevent those types
of things, be proactive, right?
We wanna proactively be reviewing credits within your system.
that can also help with some of those, audits, some of those refund requests.
making sure that you're not missing revenue in your credits as well.
And also those audits that we talked about before, like internal audits that
you do within your organization that can of course, help to prevent those
post-payment audits and those refunds.
some of the other things we talked about, right?
So the routine checks of your processes, and making sure that you're, filling
in gaps and being very creative of, where might we be making errors?
Bill Klaproth (host): so you said it's really, really important to be proactive.
So I'm sure we probably have, an OMS or two or maybe more than that,
listening to this saying to themselves.
Hmm.
I need to get on this.
I, I think I might have some leakage.
So if a practice suspects they're losing revenue or unsure, or feeling
like, Hmm, I better check into this.
What are the first steps they should take to investigate and correct the issue?
Vanessa Moldovan: so I would say first and foremost, whenever I do any
kind of an assessment, of a, revenue cycle, I look first at denials.
So I feel like denials are really the good, bad, And the ugly.
they're just a great barometer of like, what's going on?
How are we doing?
There's no part of the revenue cycle that, goes unseen when you're
reviewing the ar like it all, you know, goes downstream there.
So take a look at your denials, You know, from the last 30 to 90 days
and identify those, repeat issues.
so of course we would look at like, what are our top denials and kind
of what category are they going in?
But on top of that, cause it's kind of easy to put
together a denial report per se.
What you really need to do on top of That is look for root causes.
So a denial reason is different than the root cause of that denial.
So a denial reason from a payer might be, we denied this for being inclusive or what
we might call bundling, Or, we denied this because the patient's policy was inactive.
That's a reason our root causes.
what caused that denial?
Why did we get that denial to begin with?
and that's when we need to go back to our processes and our workflows
and look at like, how can we fix this again, to be proactive, right?
So how can we go back to that process, fix it so.
In the future, we don't get those inactive denials or those bundling denials.
And the reason why I really am like focusing in on this root cause, and
I'm sure some of our listeners are kind of like rolling their eyes, like,
okay, Vanessa, that's not so easy.
And I get that it is not easy, because.
Typically identifying root causes is a manual process.
You have to dive into the notes you know, all of the history of the claim, the
history of the denial, And so it can be a very, time consuming research process.
And This is where, tying back to what I said earlier about embracing.
Smart technology, because there is now tech out there who can help
us with identifying root causes.
And I love this that we're now in a day and age where technology can help us
with some of these just really important things that we need to diagnose.
And This is really close to my heart, You know, 'cause.
I was in operations for almost 25 years and anytime we're like, okay, we need to
look at where we're losing revenue, it was just like, oh my gosh, who has the time to
investigate and to really look into this?
And we rarely had the time, right?
And it was always this big project if and when it did get done.
So I'm just really happy to say, to everybody who's
listening is now we do have.
Solutions out there that can help, us get to that root cause and really
help us to get to that diagnosis, in a much, more automated way.
It isn't as manual.
And then we can fix that root problem and truly, prevent these
denials, prevent that, leakage.
And then finally, I just wanna say too that, to really fix these
challenges, which, in my career I've done a lot of assessments, a lot
of process improvement, projects.
It's so important to listen to your teams.
Before you put any changes in place, and I'm even talking about like, implementing
technology, changing a process, bringing in new people, getting rid of people.
If you, do that.
Listen to your teams.
I mean, the people who are on the front lines, they're the ones
who really know what's going on.
They know those workflows.
They know the little things that they're doing in order to fill in the gaps.
in order to make it happen, they're amazing people.
They're super smart.
They're problem solvers.
They're critical thinkers, right?
So sit down with enemy, like, Hey, we've identified this in our data.
We've looked at the root causes, This is what we think would be a great solution.
What do you guys think?
Do you think that our findings align with, frankly, what's really going on?
so in my opinion, if you really want to solve your problem, solve your
challenges, make sure to include those teams who are really on the front
lines And in seeing what's going on.
And then finally.
Just don't waste any time, in this day and age, unfortunately, There are so many ways
that organizations are losing revenue.
And so you just don't wanna waste any time as soon as you identify
that there could be a problem.
dive in, take a look, put processes in place, be very intentional and
smart, We wanna make sure that, it's actually going to fix the problem
and not create more problems, to prevent it from being recurring.
Bill Klaproth (host): Just a great list, an easy way to start on this process.
Number one, you talked about denials, look for the root causes, and you said
now there's tech to help with that.
So that's good news because you said it was really laborious to do this
before, listening to your teams.
It's always a great idea.
They're on the front lines.
They're the ones that'll say, Hey, I found this, or I know this, or how about this?
So another great idea.
And then don't waste time.
Like you said, be very intentional.
So really good steps.
If you think you're losing revenue, This is how you should start to
investigate and correct the issue.
Vanessa, this has been great.
It really informative.
Thank you so much for your time today.
We really appreciate it.
Vanessa Moldovan: Absolutely.
Thank you for having me on.
It was great.
Bill Klaproth (host): Once again, That is Vanessa Mold Devan.
And to learn more, you can visit amos.org/coding.
Billing Coding.
Billing is one word amos.org/coding
billing.
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I'm Bill Klaproth.
This is Amos on the go.
Thanks for listening.