Healthcare Q & A

Q & As

Question:

Our food costs seem high but the dietary manager insists that our costs are in line with other area facilities. Do you have any comparison data to help me determine if our costs are reasonable?

Answer:

You are correct. The 2017 food costs for your facility were $9.29 per day which is extremely high compared to the $6.94 county, $6.97 peer group and $7.03 state-wide averages. You were in the top 10 in your county and several of those with higher costs operate Kosher kitchens. This may be an area where you can realize substantial cost savings. You should meet with your dietary manager to review your purchasing practices, vendor pricing and menus to determine how you can lower your costs to a more reasonable level.

Question:

My Business Office Manager is going on maternity leave. We don’t want to get behind on billing or collection. How do I prepare to cover her duties during her absence?

Answer:

It is critical to plan coverage so your cash flow is not disrupted. We can assist you in determining what responsibilities can be handled by your existing staff. Then, we will work with you to develop a plan to fill any gaps in coverage. We can provide on-site as well as remote support for all of your Business Office needs from census and cash posting to claim processing, submission and collection.

Question:

Help! My nursing facility’s cash flow has slowed to a trickle, and I don’t know if this problem is unique to us, or if everyone else is also struggling. It seems that billing requirements are becoming more cumbersome.

Answer:

Billing is becoming more of a challenge, especially due to the increase in managed care contracts that many facilities are participating in. One common statistic used to measure collections is the Days in Accounts Receivable. Here is a breakdown for your state:

  • Statewide Average (733 facilities): 41.65 days
  • Statewide Average-For Profit facilities: 40.76 days
  • Statewide Average-Non Profit facilities: 45.30 days
  • Your facility: 55.71 days

It does look like you are having a more difficult time getting the cash in the door. We can assist you in analyzing your accounts receivables aging report to see if the problem is across all payer types, or if maybe just one or two are giving you challenges. We can also assist you in billing best practice tips to ensure that you are doing everything possible to get your claims sent, and followed up on, in a timely manner.

Question:

Is DODDs ICF-IID downsizing and rebalancing initiatives to home and community services working?

Answer:

Yes, the numbers speak for themselves! Since the Ohio Department of Developmental Disabilities (DODD) issued their white paper titled “The Future of the ICF-IID Program” in August, 2012, the number of ICF beds in the system have declined dramatically.

 

  2013 2017 Decrease
ICF-IID Beds 5,800 5,250 (550)
Average Bed Size 14 11 (3)

 

There are significant reimbursement incentives favoring smaller bed facilities (8 beds or less). If you are considering a downsizing plan, please contact us to discuss various reimbursement strategies.