Too many people hear the word “audit” and believe it signals trouble. But generally speaking, audits are actually a preventative measure, not a reactionary scrutinizing of financial history triggered by tax evasion. In fact, for surgery centers, hospitals and similar healthcare facilities, audits can be key to financial health by preventing denials and optimizing reimbursement.
When used as a preventative measure, business and program audits can reveal the following:
In the end, audits are all about improving performance, which in turn contributes to a more consistent revenue stream and stronger bottom line.
The Recovery Audit Program, managed by the Centers for Medicare & Medicaid Services, exists to identify instances of Medicare overpayment and underpayment to healthcare providers, and in its first three-year period recovered more than $900 million. Those are funds that were taken back from providers and returned to the Medicare Trust Fund.
But conducting your own annual or biannual audit (or having in2itive conduct one for you!) can help prevent any potential issues with Recovery Audit Contractors (those who collect on behalf of the recovery program).
So prepare your facility for possible outside audits—conduct your own routine evaluations and remember:
We’ve said it before and will continue to remind you: healthcare and the associated revenue process changes constantly. Keeping up with evolving standards and best practices takes work and regular internal audits are part of a positive, proactive effort. If you’re ready to get the process underway, contact us at in2itive Business Solutions to make sure your next audit is efficient, thorough and informative.