Revenue Cycle Time Line:  Estimation

This article has links to allow easy access time line content from Scheduling to Bad Debt Recovery.  Use this information as a starting point for planning, SWAT Analysis, or to review policies and procedures for gaps.  Create a time line for your facility to assure all participants share the same expectations.

Goals:

·         Provide an estimate for the out-of-pocket amount due from patients before services begin

·         Meet consumer expectations for pricing “transparency”

·         Reduce cost of collecting patient liabilities

Activities and Considerations:

Self Pay balance estimates are required for transparency initiatives.  Patients have a “right” to know what they should expect to pay if they receive care from a specific facility. 

A Registration Associate may need to generate an estimate when a patient is:

·         Considering whether to have services at a facility

·         Scheduling services at a facility

·         Arriving for services

·         Completing services

Tools must be available to guide the Associate through the estimation process.

For simple diagnostic services, pricing should be available from a service price list.  For more complex services, such as surgical procedures, estimated charges should be calculated from history, using similar cases, preferably physician-specific.  Selection of procedures should be available by CPT Code, CPT Description, and “drill down” to common procedure names.

Even after an estimate is generated, patient balances after insurance are difficult to calculate because:

·         Managed care agreements have different allowable amounts (approved charge rate for the procedure)

·         Employers and plans have different patient liability options;

Deductible and co-payment amounts must be calculated from up-to-date information from the verification process) (link)

The estimate of total charges, insurance coverage and residual self pay portion generated should have the option to print be saved for retrieval upon the patient’s arrival. 

On the printed document:

·         Hospital payment options should be displayed

·         An estimate “disclaimer” should print at the bottom of the page.

  • The user should have the ability to print or save the estimate.