Electronic claims better for doc practices

Some physicians are afraid or unable to switch to electronic claims submission, while others are worried about the cost.

Office Ally hopes to ease that burden by offering a free clearinghouse service to physicians. All revenues come from insurance companies and IPAs. Internet access is all it takes to participate.

“We have seen a huge intake with providers, a lot of enrollment since Minnesota’s July 15 deadline for an ‘all-electronic’ claims submission system,” said Brian O’Neill, CEO of the Portland, Ore.-based company.

“Administrative cost for paper claims is just a waste, and it’s not going toward patient care,” he said.
O’Neill said insurance companies are waiting to see what happens in states such as Minnesota and California before deciding whether to move to total electronic submissions.

According to Office Ally, the St. Josephs’ Health System in Orange, Calif., cut costs by $4 million during the first year of using its services. In addition, company officials said, St. Joseph’s billing turn-around was reduced from 60 days down to 19 days.

“If the federal government would make a mandate (for electronic submission), it would cut costs by a huge amount,” said O’Neill.

Eileen Schwartz MD, a Burbank, Calif.-based rheumatologist, said she has been using Office Ally’s clearinghouse in her new practice since February. She said she worked with paper claims at a previous practice and enjoys a better system now, which is even customizable to her specialty.
Schwartz said there is no advantage to paying for all the “bells and whistles.” She describes the service as quite fast, with no delays.

 “Look at the upfront costs to get billing software,” said Bill Baugher, the compliance manager at Preferred IPA of California. “You’re talking about a sizable investment for someone who is just starting a business.”
Preferred IPA has 200 of its physicians using Office Ally, or approximately 65 percent of the company’s client population. The company receives a couple hundred thousand claims through Office Ally each year and it sees a $2 million stream of income from those submissions, Baugher said.

Office Ally officials say their clearinghouse services allow physicians to stick to any strict deadlines when qualifying for incentives amd makes cash flow faster, with possible payment in as little as seven days.