Tuesday, October 6, 2015

Plan for Disruptions in Payments This Fall Because of ICD-10 - 5-28-2015

I am sure all of us are well aware of the many changes that will be caused by moving to ICD-10 this fall.  One big item that could easily be missed is the potential in disruption in payments.  Have we ever seen a new system implemented by CMS without some type of snafu?   Unfortunately one of the biggest potential problems could be delaying your Medicare payments.  This means you should make plans today to cover any potential payment delays this fall.
You could begin setting aside any surplus cash for the fall.  Great plan if you have a large amount of surplus cash, unfortunately most of us do not have that luxury.  Next we could either obtain a new line of credit from the bank or expand our current line of credit. 
I have always found it is much better to go to the bank to establish a line of credit well before I actually need any of the funds.  Banks do not like to loan money to people who need money instantly.  They like to loan money to people who do not need money.  You may not believe this is true until you go to the bank to obtain a loan to make payroll, because your Medicare payment was delayed.  Banks do not understand Medicare.  When you have to obtain a loan this fast you look desperate because you are desperate.

I suggest you meet with your local banker in the next month to set up or extend your credit line.  Remember that this credit line may have to go through a loan committee which takes time.  Have with you copies of your financial statements and be prepared to discuss your business.  I hope your business has been profitable, because that will greatly improve your ability to receive your line of credit or extension in your line of credit.

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