rdc, receivables management & healthcare - remote …€¦ · rdc, receivables management &...

RDC, Receivables Management & Healthcare:

Case Study & Insights

Todd Glenn, VP D+H Global Transaction Banking Solutions

Ryan Patano, VP Alta Medical Management

November 5, 2015

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Vice President, Sales, Global Transaction Banking Solutions

Introducing… Todd Glenn D+H Financial Technologies

The SMB Landscape • 28M small and medium businesses in the U.S. • 71% have fewer than 100 employees

Source: U.S. Census Bureau, Mercator Advisory Group

3 Copyright 2015, RemoteDepositCapture.com

Day-to-day Challenges of Businesses

• Managing operations • Customer support • Sales & marketing • IT/Technology • Finances, bookkeeping

all with… • Little time, scarce resources • Many separate niche technologies • No training, learn as they go


The Challenge of Collecting Money Owed

72% of small businesses prefer online payments • Incentivize early payment • Enable preferred method • Speed the cash flow cycle

http://yfsmagazine.com/2013/03/16/26-things-every-small-business-owner-should-know-about-receivables-management/





Sourcing Business Solutions Combining Bank and non-Bank services: • Customer Relationship

Management software • POS terminals • Online payments plugins • Wire services • Payments processing • Electronic

invoicing/billing • Remote deposit


Open Market Receivables Solutions… • Promise simplicity and convenience • Perceived as more innovative than bank offerings • Priced for SMB budget

Impact on Banks • Disintermediation, dilution

of services and relationship

Impact on SMBs • Time and money spent

joining financial data that ultimately ends up in bank accounts 7 Copyright 2015, RemoteDepositCapture.com

http://paysimple.com/

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=tcdZQO4VOtQ5RM&tbnid=Oj0onIBlLNe_EM&ved=0CAgQjRw&url=http://www.theiospost.com/latest/tag/square&ei=2GH5UtCbJYnz2QXqiIHICg&psig=AFQjCNGGy-Y93es5TCdCUnmeRVjeXmn-MQ&ust=1392161624693658

Getting Off the Ground

Source: https://www.sba.gov/sites/default/files/FAQ_March_2014_0.pdf/

http://boss.blogs.nytimes.com/2011/01/05/top-10-reasons-small-businesses-fail/?_r=0

Possible reasons: 1. Owners who cannot get out

of their own way. 2. Out-of-control growth. 3. Poor accounting. 4. Lack of a cash cushion. 5. Operational mediocrity. 6. Operational inefficiencies. 7. Dysfunctional management. 8. The lack of a succession

plan. 9. A declining market.

50%

33%


SMBs Like Bank Services

61% prefer online channel for bank interaction

59% prefer banks over nonbanks due to convenience of single source

20% have never heard of RDC

56% have heard of RDC but have only a basic understanding

89% of SMBs likely to pay for bank products and services use online banking

Source: Aite Group, 2014


Self-Assessment: Ability to Address SMB Challenges

65% of small businesses view banks as either “pretty much the same” or “exactly the same” as one another.

-- Aite Group, 2015


All-in-one Business Payment Gateway

1 Bank

Admin Portal 2

Merchant Admin Portal

3 Payment

Applications for the

Merchant


Benefits of an All-in-one System for the SMB’s

• Convenience • Improved user experience with existing

merchant relationship • Save time and money with a single platform for

processing all inbound payments • Consolidated view/extract of all payments

activities with AR data • Enable only the payment types needed with the

flexibility to add more at any time • Dashboard view of historical payment activity

and future schedule payments 12 Copyright 2015, RemoteDepositCapture.com

Benefits for the Financial Institutions

• Fee Income – Offer suite of services for Small and Medium Businesses

• Customer Retention & Attraction – Suite of integrated solutions prevents SMBs from going to

outside sources for service (Authorize.Net, PayPal etc.) – Attract new business with “new” all-in-one payment

processing portal – Works with your existing Merchant Processor relationships

• Analytics – Cross Selling Opportunity

• Gives banks a clear idea of the health of their customers

• Gives banks insight to the industry that are thriving and where to market their services


Opportunities in the SMB Market

1.

2.

3.

• Differentiate in your market and price services on a per-use basis • Address current receivables pain points and simplify reconciliation

Integrate receivables management with bank services

• Easy branded online payments connected to bank services • Ability to accept all payments from one platform connected to the

bank

Provide an easy onramp to accept multiple payment types and channels

• Extend services beyond treasury/retail boundaries • Use customer activity to inform advisory and crediting decisions

Bridge internal siloes and strengthen customer relationships


Profitability of SMB Accounts

• SMBs account for 54% of all sales in the U.S. • 1 in 6 generates $500K+ GAR; 1 in 4 $100K+ • Average deposit balance per account:

– SMB: $14,000, Consumer: <$100 • Average annual profit per relationship:

– SMB: $1,500, Consumer: $100-$200

Sources: SBA.gov, Mercator Advisory Group, research on consolidated marketing data from Equifax, 2014


• Residential Services • Club Memberships • Non-Profits • Medical Billing • Dental/Medical Clinics • Consulting • Law Offices • Accounting • Municipalities/Government

Sample Verticals

A Business Payment Gateway for service-oriented businesses:

• Service Franchises • Utilities • Contractors


RemoteDepositCapture.com Survey

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

No / I Disagree

Yes / I Agree

2.73%

26.75%

70.52%

“To better serve business customers, the RDC Industry needs an RDC ‘Terminal’ capable of accepting multiple payment types (Check, Card, ACH, Apple Pay, etc.).”

http://www.remotedepositcapture.com/polls/default.aspx Oct. 2015


http://www.remotedepositcapture.com/polls/default.aspx

http://www.remotedepositcapture.com/polls/default.aspx

Introducing… Ryan Patano Alta Medical Management Vice President, Co-Founder

Alta Medical Our Company – • Alta Medical Management, is a full-service

medical billing company based in Salt Lake City, Utah.

• We were established in 2006 with a staff of two taking over a practice on the verge of bankruptcy.

• We have grown steadily since then and now have more than 80 employees processing $500 million in claims and collecting more than $200 million in payments annually.


Alta Medical Our Company – • Alta manages claims on behalf of more than 50

clinics • Named 19th fastest growing business in Utah in

2012 by MountainWest Capital • Our company’s vision is “to help physicians

collect more money, more quickly, with higher patient satisfaction.”


Alta Medical Our Challenges – In its early days, Alta faced the same challenges shared by many medical billing firms… • Attempted credit card payment

fraud • Billing inconsistencies • Inefficient payment handling • No capability to debit clients’

accounts for monthly fees • The need to manage patient

payment plans manually 21 Copyright 2015, RemoteDepositCapture.com

Challenges – How we were doing things… Our Challenges – • Credit card payments - our staff had to call the provider’s

office to obtain a patient’s credit card information, or process the payment manually when the information was mailed with an invoice.

• Limited payment options - patients payment acceptance and processing was cumbersome to both Alta and its clients.

• Incoming check payments - physically transported to each of the providers’ banks; a time-consuming daily task.

• Hard to grow out-of-state - our company’s early success attracted out-of-state clients with out of-state banking relationships, making the deposits of those paper checks a significant challenge.

• Inefficient use of staff time - due to a complicated payment acceptance process


Solution – What we were looking for…

• Alta looked to technology to overcome these issues; in particular, to D+H’s Total Transact Payments Suite, which it ended up implementing


Solution – What we were looking for… Our Mission –

• Overcome payment processing inefficiencies by implementing modern technology

• Increase speed of reimbursement to improve the financial performance of its clients

• Expedite Alta’s receivables • Improve overall payment collection • Increase patient satisfaction levels for

their clients – the medical practitioners. • Increase patient payment plan

compliance 24 Copyright 2015, RemoteDepositCapture.com

We Implemented a ‘Lean Approach’…

Our Approach –

Lean Management – • Continuous improvement with focus on the reduction of

waste • Standardize processes to increase efficiency and

accuracy • Implemented O.H.I.O. (Only Handle It Once) mantra New Goals – • To support this strategy, a new payment processing

solution was required with 6 main goals as its objective


Our 6 Main Goals

1. Increase patient payment options 2. Reduce time and costs spent handling payments 3. Take advantage of remote deposit technology 4. Support any clients bank in any part of the

country 5. Speeding up our receivables 6. Increasing patient payment plan compliance 26 Copyright 2015, RemoteDepositCapture.com

#1 Increase Payment Options

1. Handle multiple methods of payment including Online, Phone, and Mail

2. Accept payments with credit cards, debit cards, and Health Savings Accounts (HSAs), and checks

3. We also needed to find a way to schedule payments and offer installment payment plans

“We wanted to run the card with the patient on the phone, email the receipt, and be done” - Ryan Patano, Alta’s Vice President

Increasing Payment Options for our clients – To increase patient payment options, we wanted to be able to be able to do the following…


#2 Reduce Time & Costs Handling Payments

A better way to process credit card transactions–

Rather than having to take credit card payments manually, run deposits to the bank and keep track of patient payment plans physically, Alta needed a solution that would do the following…

1. Enable greater efficiency 2. Provide better customer service 3. Improve collections in line with the company’s

implementation of lean management principles


#3 Deposit Checks Electronically A Better way to Deposit Checks – We needed a solution that allowed our staff to… • Scan check payments directly into the

providers’ bank accounts • Eliminate the need for trips to the bank • Save time and resources spent by staff

depositing checks at multiple banks

“When we started to get out-of-state clients, we didn’t know how we were going to handle their deposits when their bank didn’t have a presence here.” - Ryan Patano, Vice President of Alta Medical

If we were able to deposit checks electronically from the office, we could eliminate the daily deposit trips to multiple banks.


#4 Support any Clients Bank in any Part of the Country

A way to submit deposits to multiple different Banks – • Alta’s clients already had strong

relationships with their banks, so it was important to find a solution that would allow them to use Alta’s services without switching banks.

• According to Jeff Whiting, President and CEO of Alta, it is almost impossible to get a physician, or group of physicians, to change banks.

“It is an enormous decision for any practice as they have typically built their banking relationship over the years. They have strong relationships with their bankers and they utilize many services, making it difficult to move.” - Jeff Whiting, President and CEO of Alta Medical


#5 Speeding up our Receivables

Faster payments = happy doctors and clinics

• Our track record for collecting receivables is a strong selling point to bring on other medical customers

• Overall receivables processing improved by 15 days after implementing Total Transact


#6 Increasing Patient Payment Plan Compliance

Patients often commit to payment plans but adherence to the plan is difficult to manage • Recurring payment plans increases compliance • Offering multiple methods to make payments

provides flexibility and makes it easier for patients to pay

• Structured, recurring payment plans


Our Solution • Having reviewed a number of products from

different banks and vendors, only one of them could provide a total solution

• Alta selected the Total Transact Payment Suite for its ability to address its requirements with ease

• Total Transact has enabled the business to accept, initiate, and process electronic payments in a convenient, efficient, and secure environment using a single online platform


Our Solution • For patients with large balances –

– Offer the convenience of installment payment plans – Ability to set up automatic payments patients can

choose to pay from their checking, savings, HSA or credit card accounts

– With hundreds of patients on automated payment plans, Alta can process these payments without staff having to become involved

• Check Payments – – Scan check payments directly into the providers account – Eliminated trips to multiple banks – “It gives me back an hour of my day, every day,” says

Patano.

• Total Transact is Bank-Neutral - – Providers bank with multiple banks – Ability to support growth out of state – This ability gives insight into flow of money as well

“No other vendors could manage all of these services in one place, Total Transact has been instrumental in our growth, both inside and outside the state.” - Ryan Patano, Vice President of Alta Medical


Where are we now? Payments by Mail or Phone – • All patient credit card payments received by mail

or over the phone are processed through the provider’s merchant account with a web-based virtual terminal

Online Payments – • Patients now pay online using their credit card,

an HSA debit card, or even their checking or savings account

ACH Payments – • We can also process payments via an ACH debit

transaction Expanded our footprint – • Able to support clients with established practices

anywhere in the country; they don’t have to change their established banking relationships to benefit from Alta’s services

"Total Transacts online payment page enables patients to access and submit payments at their convenience, making for timely and efficient payment processing without staff intervention.” - Ryan Patano, Vice President of Alta Medical


Where are we now? Payments by Volume (2014) • 83,245 total payments processed

– ACH: 1,972 (2%) – Check: 39,887 (48%) – Card: 41,386 (50%) – NSF Returns:115(0.14%)


Summary

• Small businesses (particularly younger entrepreneurs) see banks as a commodity

• Banks must distinguish themselves with unique services and technology to cement long-term relationships

• In my experience and research, the DH suite of services is unique. Many vendors can match 2-3 services – but I have found very few that can match the entire suite.

• D+H has been a critical partner for us as in enabling the growth of our interstate business, controlling patient payments and managing our own receivables


Thank You & Contact Info Todd Glenn Vice President, Sales, D+H Global Transaction Banking Solutions t: 801-716-4745 m: 801-891-3469 [email protected]

Ryan Patano Vice President & Co-Owner, Alta Medical Management t: 801-747-7268 [email protected]


mailto:[email protected]

mailto:[email protected]

Questions?


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