For providers who opted into the Advanced Payment Program through CMS, it’s time to ask yourself the hard question: Is your revenue cycle fully optimized and prepared to handle the potential recoupments that are coming in the next few weeks?
The time period outlined by CMS for repayment of the Advanced Payment Program is right around the corner with repayment beginning one year from payment date. For most of the home health industry, payments were made from CMS for those who applied and qualified for the advanced payment in April 2020 or early May 2020. Repayment begins one year from the date the payment was issued and there are flexible options to repay this amount to CMS, but the amount must be repaid.
Most providers in the industry will begin seeing 25% recoupments on payments from CMS beginning in late April or early May 2021; these 25% recoupments will continue for no longer than 11 months. After the 11-month recoupment time has passed, the repayment impact will be 50% for the next 6 months; any balance remaining following the 6-month 50% recoupment period will be followed by a demand letter for the remaining balance to be paid.
If your revenue cycle has not yet adjusted to the No-Pay, 5-Day RAP environment there will be another layer of financial constraint hitting your bottom line from the recoupments. If your agency is not fully optimized, this additional pressure could cause a significant ripple effect in your day-to-day operations due to the cash flow reduction that will be ongoing for the foreseeable future. Are you prepared to handle the larger issues that an even smaller cash flow will bring to the surface? Do you have a plan to accelerate your receivables and optimize your day-to-day cash flow? Has anyone validated your plan will ensure that your agency will come through the next wave unharmed?
Contact Corridor today for a conversation on what steps to take to ensure your revenue stream can be fully protected and optimized against the impending financial impact the repayment will have to your agency.
For over 30 years, Corridor has partnered with home-based care providers, delivering powerful solutions to support the unique challenges of caring for patients in the home. Our team of operating executives, clinicians, and nationally renowned industry experts have run provider organizations and resolved the same challenges you face.
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