Rick Rubin Maureen Little

01-03-07

Habif, Arogeti & Wynne: 40 Years of Medical Financial Expertise

By John Fries

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Physicians are very busy people. From patient appointments and hospital rounds to a zillion other things, a doctor’s day can be very long and extremely busy. And that’s often the rule, rather than the exception. So, with all the things that need to be done each day, is it any wonder that such non-care responsibilities as efficient financial management often are somewhat neglected.

If you own a medical practice – or are a partner in one – chances are your revenue stream is likely well below where it has been. Maybe you’re not watching your receivables and payables as closely as you could or should be. Perhaps your coding isn’t up to date. Those are just a couple of many reasons your practice might not be generating the revenue you expect.

If this scenario sounds far too familiar, are you willing to modify your way of working to help maximize your earnings? The good news is there are experts who can help you in myriad ways.

With 40 years of experience in the medical marketplace, Habif, Arogeti & Wynne (HA&W), the largest, independent accounting firm in Atlanta, is a recognized regional leader in helping medical practices administer their financial functions. Today, with more than 300 medical clients of all sizes across the Atlanta area – mainly physician practices and dental offices – the firm is widely regarded by practitioners and practice managers as the one to call when strong business expertise and insight are needed.

A full range of services provided by HA&W include practice management, coding and billing assistance, compliance counsel, tax planning, staff training, personal and business financial plan development, cash and embezzlement control review and implementation, front office organization, new practice set-up, due diligence for practice acquisitions and practice sales.

HA&W’s work over four decades has enabled the firm to carve out a strong niche. “Many firms don’t work very closely with the medical community,” says Rick Rubin, a 20-year partner at HA&W who works with the firm’s Advisory and Business Services Group, which provides counsel and services to medical and dental practices. “However, we always did consulting for medical offices as a one-stop shop with all the financial services a medical practice needs. Then, five years ago we formalized our commitment by hiring Maureen Little as practice management consultant.” Little brought 15 years of medical administration when she joined HA&W’s staff, along with proven expertise in a number of key areas, including billing and collections, program compliance, coding and personnel management.

It would be easy to think that medical practices are on top of everything from a business standpoint, given all the financial and regulatory responsibility. However, Little says that’s very often not the case. “Physicians usually call us when they realize that their revenue is down. Often, they’ll be comparing how much revenue they’re generating during the current year and wonder why it’s not as much as they made the year before – and they’ll realize there’s a problem that needs to be addressed.”

At that point, she says, she puts the practice under a microscope, asking a number of detailed questions and exploring all possibilities. “I examine their entire billing cycle to determine whether the efficiency of the staff and procedures that are in place are adequate,” she says. “I check their accounts receivable and review their billing to see if they’re coding properly (Little is also a Certified Professional Coder). Given how often the rules change, they could be using the wrong codes, or codes that are outdated.”

In the medical office environment, a number of things can combine to create larger issues that result in a significant reduction in cash flow. Little says it takes her about two days with a client to identify where the problems are. Once noted, she advises clients on how to make changes that will get them on the right track. Those changes can be across the board.

“Quite frankly, problems are sometimes due to lack of attention to detail, especially when it comes to claim filing procedures and proper documentation,” she says. “Sometimes, the people responsible for document management lack sufficient training in this area, which will often lead to problems. It’s important that medical practices hire smart and efficient support staff members who have an understanding of how financial management works in a practice environment.”

Rubin adds that, “It’s important that staff members close each day properly. If it’s not being done on a daily basis, employees might not be doing their jobs. There have been cases when we’ve discovered that staff are just throwing checks in a drawer, rather than documenting in each day.”

Both Rubin and Little say the biggest problem they encounter in medical practices is careless accounting. For that reason, they advise physicians to review and track their monthly reports on a regular basis, watching for significant changes that could be a sign of potential problems. It’s also essential, they add, for doctors to be involved in the business administration of their practices.

With the end of the year quickly approaching, they also recommend that physicians and administrators review their financial data as soon as possible. “They should be meeting with accountants to discuss the state of their financials. It might be advisable to buy new equipment now, since they can use those purchases to offset their tax liability. Also, we suggest they consider their retirement plans as part of their year-end tax planning.”

Rick Rubin and Maureen Little can be reached at (404) 892-9651. Habif, Arogeti & Wynne’s web site is www.hawcpa.com.

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