Practice Management Software: Is It Right For My Practice?
by Tannus Quatre PT, MBA
We all know that practice management software is here to stay. And while this is the case, there are still challenges associated with the use of management software in today’s physical therapy practices. It is not inexpensive to implement a comprehensive software or service, and practice owners can be left with a feeling of buyer’s remorse if expectations are not fully met.
Having a clear understanding of the benefits and exactly how they will affect your practice is of paramount importance when choosing practice management software or service that is right for you.
This article will focus on (1) the benefits of using practice management software, (2) a process that can help determine if a software or service is right for your practice, and (3) recommendations to consider in your personal pursuit of the right practice management solution for your facility.
Benefits
Time
The adage, “time is money” has a direct application to physical therapy practice, as the primary way in which revenue is generated is through time spent caring for patients. Time spent with medical records, schedules, and claims “manage” revenue, but do not bring additional cash flow into a practice. The ability for practice management software to automate management processes can be a significant savings in both time and money for a practice.
Errors
Errors are inevitable in information management, and physical therapy practices are not immune. Errors not only have a negative impact on safety and quality, but also require time to correct, which can be a considerable expense. Practice management software can significantly reduce the human component of error in the areas of documentation, scheduling, and claims management, bringing value to a practice in these areas.
Speed
The speed at which information can be transferred has dramatically increased through the use of electronic communication. One of the largest benefits of practice management software is the ability to communicate medical record and claims information at speeds unparalleled in the paper world. Faster communication of this information means quicker decisions and shortened revenue cycles, both of which have a direct benefit to private practices.
Evaluation
A common misconception is that practice management software solutions are appropriate only for practices of a certain size. The size of a practice should dictate the type of solution used, but even the smallest practices can achieve the benefits associated with time savings, reduced errors, and shortened revenue cycles through practice management software. In this section we will describe three areas that are important when determining if practice management software is the right choice for your practice: (1) where you spend your time, (2) the impact of errors on your practice, and (3) the existence of delays.
Where do you spend your time?
As a whole, practice management software automates manual processes, which saves time. Important to note, however, is that to achieve a net savings in time often requires a redistribution of the way time is spent.
If your practice spends excessive time writing progress notes to referral sources, searching for medical records, or submitting charges for treatments rendered, practice management software can efficiently automate most of these processes. Know, however, that achieving these efficiencies may require changes in workflow, especially with regard to documentation at the point-of-care. If you feel that current workflow is optimal in the above areas, practice management software may not offer you a net savings in time over current processes.
How do errors impact your practice?
Errors come in every shape and size in healthcare, from misspellings to poor handwriting, forgotten signatures, and more. Unfortunately, the impact of errors can be huge in terms of safety, quality, and reimbursement.
If your practice currently experiences regular errors in the form of incorrect submissions of claims data, forgotten charge submissions, or denials from claims adjusters based on narrative documentation or illegible script, practice management software may offer immediate benefits. The ability to standardize codes, terminology, and readability of information can significantly improve reimbursement and the time required to correct errors.
Where are your delays?
Delays in healthcare mean delays in payment. Cash is king, and lengthened revenue cycles can squash even the best practices. Knowing where your delays come from can help determine if practice management software would help shorten delays and improving payment cycles.
If your practice experiences delays in the submission of charges or documentation for services, or faces delays because of the need to resubmit information that was not correct the first time, practice management software can help. The use of electronic medical records as part of a comprehensive practice management service can effectively deliver information from the point-of-care to the payor in mere seconds, rather than requiring hours or days for the manual transfer of information.
Recommendations
Invest in understanding
It pays to understand how your practice operates and how you can make it more efficient through the use of practice management software. It doesn’t matter if the investment comes as owner time spent researching and learning ways to improve operations, or if the investment is made in the expertise required to assist with the process. Either way, the investment of a few days or a few dollars can yield huge savings over just a few months of improved operations.
Size matters
Earlier it was mentioned that the size of a practice shouldn’t impact the decision to use practice management software. This is true; however, the size of a practice will definitely affect the type of solution that will work best. Small practices often benefit from software provided as a variable cost to the business, without incurring large upfront investments in equipment. Larger practices may be able to benefit from internal services that leverage in-house technical support and equipment systems that incur less ongoing expense.
Look to the future
When making a decision about practice management software, remember that technology changes rapidly, and forethought into a system that will scale appropriately with your practice will save you money in the long run. Choose to work with companies that have an established track record a plan for the future. Software providers that offer the ability to integrate with the Internet for data transfer will likely have a significant advantage in the future of health care.
Get input from all users
Practice management software isn’t all things to all people. Good systems integrate the complexities of clinical documentation with the technical aspects of billing, coding, and scheduling. For a practice management software to do this effectively often requires some give and take between disciplines in the areas of data entry and processing. Systems that work well for clinicians may be less intuitive to office staff, and vice versa. Ensure that all users try a system before making a final decision, so that no parties are left with a unpleasant surprise during implementation.
Manage expectations
If there is one takeaway from this article, it is the importance of managing expectations in the implementation of a practice management system. Practice management systems can, and do, improve efficiency, protect patients, and save money. Even so, they require deviation from processes that have become comfortable in a paper world. For this reason, it is important to expect that practice management software will not be all things to all people, and that experiencing the benefits of practice management software will take work, flexibility, and a willingness to learn. Practice owners, clinicians, and office staff that understand this as they begin to implement practice management software are far likelier to understand and appreciate the benefits that the software has to offer.
Tannus Quatre is lead practice consultant with Vantage Clinical Solutions, Inc., and can be reached at tannus@vantageclinicalsolutions.com.
Article reprinted from the April 2008 issue of Impact, with permission of the Private Practice Section, APTA.