Oh man, this is a touchy subject for sure!!!! But let’s be honest, how many practices and organizations offer incentives (bonuses) to your front office or billing teams. I can honestly say very few offer incentives, and I question WHY?
In just about every organization or practice, there are incentive/bonus programs for the Leaders, C-Suite, Directors, Administrators. If you’re a leader, you wouldn’t even consider a position without an incentive/bonus program, correct? So why is it so crazy to think that incentives wouldn’t work for our front office and billing office teams? When I talk to organizations or practices about incentives for their front office and billing team the resounding response is we are paying them to do that job why do I need to give them an incentive to do their jobs? Then I ask, why does the organization or practice need to provide you with an incentive to do your job? What is the difference? Don’t tell me because I am responsible for more, no it has nothing to do with you having more responsibility; It has everything to do with you wanting a piece of the pie when the organization or practice does well because of your leadership. Plain and Simple. So why wouldn’t the individuals who are making it happen and following your guidance also be incentivized?
Webster dictionary states the meaning of incentive is: “a thing that motivates or encourages one to do something, a payment or concession to stimulate greater output or investment.”
Oh, my goodness who doesn’t want their front office and billing teams to be stimulated to do more and perform at the best they possibly can accomplish. I would guess that every leader wants to have the best practice and be known as the best in the industry, would want the best out of their teams. So why not incentivize your teams that can make or break your practice and your organization! It is a no-brainier! But for some reason, this is a hard concept for our organizations and practice to grasp. The significant part of an incentive program is that it should be set it up in such a way that the individuals have to perform at a higher level to receive the incentive. So if they “just do their job” the incentive would not apply, however, if they “go above and beyond” they receive the incentive. Just like a leader who goes above and beyond resulting in positive growth or bottom line receives an incentive.
Now, I am sure a lot of you are saying we can’t afford to give an incentive. If that is the case, then you start moving toward an incentive program it could take six months or a year but start moving toward the incentive. You build the incentive program by putting in goals to achieve the positive revenue and outcomes results. Thus when you meet the goals, then you have the revenue resources to give the incentive. Incentive programs are not easy and must be realistic and measurable. Th incentive programs should never be subjective or longevity of a position. The reason it should not be subjective and longevity are because it results in reduced performance which is the opposite of what an incentive program is all about. Just because an individual has been with a practice or organization for 5, 10, 15 years doesn’t mean they are productive individuals. I am not saying that individuals who stay are not productive but saying is not a reward.
Let build an incentive program that works. If you don’t have the current revenue to the incentivize the teams, then build the incentive program that when you reach the goal the incentive will be paid out to the individuals who achieve the goals. Thus, for example, Front office Incentives may be. If the current state is they only collect 5% of the over-the-counter balance, and you need them to obtain 50% of the over-the-counter balances. You will set the over-the-counter collection incentive program as a stair-step process. If the individual reaches 15%, then they get “x amount” one time only then after no incentive. If the individual reaches 25% then they get “x amount” one time, then no incentive after. However, if they reach the 50% collection goal, then they receive “x amount” every time they reach that goal. This continues till everyone is achieving the 50% goal. Then a new incentive plan is put in place to reach 75% of the over-the-counter balance. Once the 50% goal is set and achieved then the 50% becomes the expectation and those who do not reach the expectation then there is a penalty just like any other position where you have a weak performer. A excellent incentive goal for the front office is between 65%-80% for the over-the-counter collections. It is not unreasonable to collect at least 65%-80% of the balances patients have at the front desk but is absurd to say they have to collect 100%. They may hit that once or twice, but it won’t happen every day. When the team member who hits the 65-80% goal whichever you hit, then they get an incentive. The incentives should be paid out on quarterly bases, this way the individual has to work hard all the time to reach the goal not just some of the time.
I find that when individuals at the front office or billing teams are given incentives, the high performers will go after it and get those incentives, the poor performers will complain and not reach the incentives. This is a clear indication that the poor performers need additional training and if they can’t achieve an incentive, then it is the responsibility of the leader to help motivate the individual. If the poor performer is unable to reach the expectation or an incentive then its time to review if that individual is a good fit for the practice or organization. I realize that is harsh to say and it is hard to do, however, if you want positive results and outcomes, then you need the high performers going after those incentives.
So in conclusion, if you don’t have an incentive plan for your front office and billing teams then I strongly encourage you to start toward an incentive plan. The incentive plan will promote your good performers to excel resulting in overall positive results. The incentive program will also attract high performers to work for your practice and organization, as well as attract longevity to your team. Just do it, it doesn’t have to be huge it just has to be in place.
If you need assistance in putting in an incentive plan into your practice or organization for your front office and billing teams, please contact me I will be happy to help.
Cissy Mangrum, MBA, CMPE, CPC
Owner/Principal Consultant
Revitalize Healthcare Solutions
Contact: Cissy.Mangrum@cmhealthconsulting.net
Phone: 615-397-5042
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