www.independent-practitioner-today.co.uk
March 2024 Issue 160
INDEPENDENT PRACTITIONER TODAY
The business journal for doctors in private practice
In this issue
How to expand your practice
Harley Street’s BID to boost business
Our new ‘Troubleshooters’ series looks at the big questions affecting doctors’ business P12
Harley St. launches its Business Improvement District (BID) P18
£12.50
AI set to transform cancer care
n See page 22
What can trigger a tax official’s probe?
Accountant Richard Norbury on the issues to consider before filing a tax return P43
Keep on top of billing By Robin Stride
New figures demonstrating the extent of record business levels for consultants in the independent sector have sparked a timely warning as practices move into the next financial year: ‘Keep on top of your billing’. The advice came after a report from Healthcode* revealed providers sent a record 10.2m invoices to insurers through its online clearing service in 2023. This amounts to a 20% rise on the previous year, which brought the sector over £4bn and saw as many as seven in ten practitioners, practices, clinics and private hospitals using the service to submit invoices to all major insurers. But the welcome growth in activity, which is expected to roll on, will bring challenges to the many consultants and their practice staff who already struggle with the administrative side of collecting their money. Practice management system and medical billing collection company Medserv said consultants in the healthcare industry were ‘grappling with a myriad of billing challenges’, from delayed payments to disputes over services rendered. These were posing a significant financial strain and administrative burden for practitioners and the new Healthcode data ‘underscores
Our sponsors
STAY IN CONTROL
☛ Areas to watch: self-pay, dealings with embassies, and medico-legal cases ‘where payment disputes are common’.
☛ Consultants may face additional tax liabilities on money owed to
them, leading to further financial strain and complexity in managing their finances. ☛ Addressing billing problems requires comprehensive reforms, including streamlining billing processes, implementing robust payment mechanisms, enhancing regulatory oversight and providing adequate support and resources. ☛ Doctors’ common billing mistakes include inadequate documentation, failure to follow up on unpaid invoices promptly and lack of awareness about billing regulations and procedures. ☛ Group practices and solo practitioners both face billing challenges, but groups may have extra complexities due to the co-ordination of multiple providers and varying billing practices among members. ☛ Explore innovative solutions: technology for billing automation, promoting transparency in billing practices and fostering collaboration between healthcare providers, payers and regulatory bodies to address systemic medical billing industry issues. Source: Medserv the magnitude of these challenges’. The company’s marketing manager Derek Kelly said: ‘Consultants often face various billing challenges, including delayed payments, inaccurate invoicing and disputes over services rendered. ‘These problems can result in significant financial strain and administrative burdens for both individual practitioners and healthcare organisations. ‘There’s a growing concern among consultants regarding the worsening state of billing problems. Several factors contribute to
this trend, including increased administrative complexities, changes in healthcare regulations, and inadequate infrastructure for efficient billing processes. ‘When consultants seek assistance with billing issues, they often have substantial outstanding debts. The average amount owed varies depending on factors such as specialty, patient volume and the extent of billing discrepancies. ‘With the surge in invoice volumes, consultants are grappling with larger outstanding amounts, exacerbating financial challenges.’ Medserv said doctors across the
UK were collectively owed large sums from late payers. Although it did not go into any detailed figures, it is known some practices have been owed six-figure sums historically before seeking billing help . Mr Kelly told Independent Pract itioner Today: ‘This sum can be substantial, considering the large number of healthcare providers and the prevalence of billing delays in the industry. ‘Some outstanding payments can be quite old, spanning months or even years. This ageing of receivables adds to the financial strain on healthcare professionals and organisations. ‘In extreme cases, consultants may face non-payment for services rendered, leading to severe financial distress and potential legal disputes. Such scenarios can disrupt healthcare delivery and erode trust between healthcare providers and patients. ‘The increase in invoice volumes exacerbates the risk of non-payment. It underscores the challenges in effective debt recovery, highlighting the need for streamlined billing processes and robust payment mechanisms.’ He said the older the debt, the lower the successful payment rate would be. If written off as bad debts, this caused further financial losses for healthcare providers. Read Healthcode’s detailed findings on page three
*