Kyle Goldammer, MBA, senior vice president of financial services for Surgical Management Professionals in Sioux Falls, S.D., is a great resource for advice on building a fiscally healthy surgery center. In a Becker's ASC Review column, he discussed the questions every ASC administrator should ask their accounts receivable manager to determine how well the center is doing financially.
For a quick check-up on A/R, he recommended asking the manager about the ins and outs of A/R, including the center's average collection time, oversight policies for coding compliance and whether the ASC is being reimbursed at market rates. "If you are a start-up facility, you only have one chance to negotiate a fair contract," he wrote. "In many instances, facilities accept starter contracts that are woefully inadequate in terms of reimbursement. Unfortunately, once these contracts are signed, it is difficult to get more than a nominal increase in any given year."
He also recommended reviewing the ASC's percentage of bad debt and charity care. In a troubled economy, many ASCs are forced to absorb bad debt when patients fail to pay, but successful collections can be improved by making the patient fully aware of his or her financial responsibility. "Your business office should provide every chance for the patient to pay," he said. "It is recommended that a pre-collection program be used before the patient is turned over to full collections."
In a 2010 interview with Becker's ASC Review on developing new ASCs, he warned developers that you can't do a good deal with a bad management company. "Make sure there is a level of trust and camaraderie with the partners, including the hospital partner and the management company," he said. He added a large group of surgeon-investors is essential to bring in the required volumes: "Bigger, in this economic environment, is better. No matter how good the management, you can't support a center without volumes."
With Surgical Management Professionals, Mr. Goldammer leads financial planning for an organization of physicians and executives who develop and manage surgical facilities and partner with physicians and other organizations to produce quality, financially healthy centers.
Read more on notable surgery center leaders:
-ASC Leader to Know: Robert Murphy of ASC Turnaround Group
-ASC Leader to Know: Dr. David Ott of Gateway Surgery Center
For a quick check-up on A/R, he recommended asking the manager about the ins and outs of A/R, including the center's average collection time, oversight policies for coding compliance and whether the ASC is being reimbursed at market rates. "If you are a start-up facility, you only have one chance to negotiate a fair contract," he wrote. "In many instances, facilities accept starter contracts that are woefully inadequate in terms of reimbursement. Unfortunately, once these contracts are signed, it is difficult to get more than a nominal increase in any given year."
He also recommended reviewing the ASC's percentage of bad debt and charity care. In a troubled economy, many ASCs are forced to absorb bad debt when patients fail to pay, but successful collections can be improved by making the patient fully aware of his or her financial responsibility. "Your business office should provide every chance for the patient to pay," he said. "It is recommended that a pre-collection program be used before the patient is turned over to full collections."
In a 2010 interview with Becker's ASC Review on developing new ASCs, he warned developers that you can't do a good deal with a bad management company. "Make sure there is a level of trust and camaraderie with the partners, including the hospital partner and the management company," he said. He added a large group of surgeon-investors is essential to bring in the required volumes: "Bigger, in this economic environment, is better. No matter how good the management, you can't support a center without volumes."
With Surgical Management Professionals, Mr. Goldammer leads financial planning for an organization of physicians and executives who develop and manage surgical facilities and partner with physicians and other organizations to produce quality, financially healthy centers.
Read more on notable surgery center leaders:
-ASC Leader to Know: Robert Murphy of ASC Turnaround Group
-ASC Leader to Know: Dr. David Ott of Gateway Surgery Center