{"id":7489,"date":"2020-04-01T00:00:44","date_gmt":"2020-04-01T07:00:44","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=7489"},"modified":"2022-06-15T17:45:29","modified_gmt":"2022-06-15T17:45:29","slug":"how-to-capture-missed-charges","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/how-to-capture-missed-charges\/","title":{"rendered":"Lost and Found"},"content":{"rendered":"

Missed charges are an unfortunate fact of life at veterinary practices. Even if they have the best of intentions, few hospitals can claim a 100% capture rate. Billing mistakes are guaranteed to happen from time to time. But what makes missed charges such an insidious problem is how easy it is to underestimate the scope.<\/p>\n

Simply put, we don\u2019t know what we don\u2019t know. Without the proper protocols and procedures in place, getting an accurate picture of the problem is difficult. After all, if you knew a charge had been left off a bill, you\u2019d immediately move to correct it.<\/p>\n

That doesn\u2019t mean we don\u2019t have some hints about how widespread the problem is. According to the American Animal Hospital Association, 17% of lab tests were not billed, and other sources estimate that the industry misses an average of 5% to 10% of all charges. This means a hospital grossing $2\u2005million could be missing as much as $200,000 in charges each year. That missed revenue also reduces the hospital value by $1\u2009million, assuming it is valued at five times earnings.<\/p>\n

Keep in mind, all this doesn\u2019t affect your costs. You\u2019re spending the same amount to operate your practice either way. You\u2019re just giving up earned revenue.<\/p>\n

Discovering missed charges can feel a little like finding a leak in your boat after you\u2019ve set sail \u2014 the challenge lies in fixing the problem while charting your hospital\u2019s course. The good news, though, is that no matter what your actual missed charges are, many of them can be captured. Those leaks can be sealed.<\/p>\n

Here are four steps to help you identify missed charges and begin recapturing them.<\/p>\n

1. Identify Problem Areas<\/h3>\n

You can\u2019t fix a problem if you don\u2019t know what it is. Therefore, the first step in capturing missed charges is to conduct an audit.<\/p>\n

You could go about this in several ways. You could bring in a consultant to look for discrepancies in your medical charts and billing statements, or you could examine the statements yourself, although this might be a challenge given your busy schedule.<\/p>\n

Fortunately, auditing every billing statement your practice has ever issued isn\u2019t necessary. Instead, each week you should grab a handful of medical charts to compare against your invoices. Over the course of a month or two, you\u2019ll identify missed charges and you might see emerging patterns.<\/p>\n

For instance, maybe your practice consistently forgets to charge for nail trims. And perhaps you don\u2019t charge for follow-up lab tests<\/a> as diligently as you should. No matter the service, once you see the routinely overlooked charges, you\u2019ll be better prepared to take corrective steps.<\/p>\n

2. Create Protocols and Templates<\/h3>\n

A good routine is your secret weapon for capturing missed charges. Seeing why is easy: If everyone in your hospital does things differently, they\u2019re creating more opportunities for mistakes and missed charges. By standardizing and simplifying how things are done, you can reduce the chance of errors.<\/p>\n

The best way to begin is to create more consistency by going into your billing system and developing templates for your top 20 to 30 services. You should also look for opportunities to bundle charges. For instance, if every routine checkup includes a particular set of lab tests, it\u2019s more efficient to bundle them for billing purposes. That way, instead of trying to remember to add several items, the procedures will appear on the bill by default.<\/p>\n

Training your employees also plays a key role here. Helping your team to understand the importance of standardizing processes, sticking to a routine and correctly using travel sheets will help reduce the likelihood of a missed charge. And since everyone in your practice benefits when revenue is captured, your employees hopefully will be eager to help.<\/p>\n

3. Build in Safety Nets<\/h3>\n

For our purposes, a safety net is any procedure that acts as a check against error. To that end, some of your best safety nets are other people in your practice. When a technician inputs charges based on a doctor\u2019s recommendation, the doctor should review the charges for accuracy. Likewise, when a patient is checking out, the team member at your front desk should verify the procedures performed (on the travel sheet) against what appears on the bill.<\/p>\n

Safety nets<\/a> can be created in other ways. One of the best is good customer service when preparing estimates for pet owners. Not only does this help your clients know what to expect, it also provides you with a document to compare against the bill at the end of the visit. If something appears on the estimate but not on the bill, that\u2019s a clear sign that you might have missed a charge. You have a great opportunity to capture it.<\/p>\n

Technology can be your ally here. For instance, it allows everything a doctor recommends to be entered into the computer right away. This ensures that procedures and recommendations are captured and properly charged.<\/p>\n

By creating safety nets, you further safeguard your practice against missed charges even after you shore up protocols and procedures.<\/p>\n

4. Don\u2019t Be Bashful<\/h3>\n

When multiple clients are months overdue for their pets\u2019 annual checkup, the potential revenue loss is significant and adds up fast. Fortunately, the answer is simple. Before a client checks out, schedule the next appointment. Forward-booking might seem pushy if you\u2019re not used to it, but most clients appreciate adding an appointment to their calendar. It also results in better care by increasing compliance.<\/p>\n

Also, don\u2019t be shy about updating your prices<\/a>. Your costs increase throughout the year, so your charges need to reflect that. If you\u2019re considering a 4% increase this year, I suggest spreading it out to 1% each quarter rather than a single larger bump. Although some practices are reluctant to make regular increases for fear of a negative client response, incremental price adjustments are far less jarring than you might think.<\/p>\n

The most important time to be a little more assertive with clients is when you spot a missed charge. Although calling a client and admitting a mistake might feel awkward, remember that you\u2019re not being unreasonable. Services were rendered, and those services are valuable. You\u2019ll find that most clients will understand that mistakes happen. A client who would rather take advantage of your mistake probably isn\u2019t a client you want long term.<\/p>\n

When you add up the cost of missed revenue, you quickly appreciate the effect it has on your practice. The prospect of chasing down lost dollars can be daunting, especially in the context of a busy practice. The work you do every day can be difficult, emotionally draining and even chaotic. A new project, even one for the purpose of capturing lost revenue, can be tough to prioritize.<\/p>\n

But just as missed charges add up quickly, so do the changes outlined above. You don\u2019t have to completely reorganize your practice to start seeing a difference. As you audit your billing statements, implement better protocols and templates, add safety nets to your processes, and communicate with clients, you will make great progress in stopping the leakage of revenue.<\/p>\n

So, start at the beginning. This week, choose a few billing statements and compare them against your medical records. Look for those missed charges. Then begin making changes simple enough for your team to follow suit. Soon enough, you\u2019ll be capturing lost revenue and keeping more of what you\u2019ve earned.<\/p>\n","protected":false},"excerpt":{"rendered":"

Missed charges can cost a veterinary practice tens of thousands of dollars\u00a0a year.<\/p>\n","protected":false},"author":116,"featured_media":7490,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[318],"tags":[],"class_list":["post-7489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-april-may-2020","column-features","clinical_topics-finance","clinical_topics-practice-management"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"\nLost and Found | Today's Veterinary Business<\/title>\n<meta name=\"description\" content=\"What makes veterinary missed charges such an insidious problem is how easy it is to underestimate the scope.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta 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