SALES GUIDE ASC Revenue Cycle, Accounting and IT Solutions— Amblitel Solution Offering: Program Summary: Amblitel provides ASC specific back office services (revenue cycle management, accounting and financial management); an Information Technology Platform (revenue cycle IT application, accounting/financial management IT application and a business intelligence application), ASC specific consulting services, and hospital perioperative assessment services. By using Amblitel’s ASC industry specific back office services, IT solutions, consulting services, and hospital perioperative assessment services, clients can see an increase in revenue, a reduction in business office costs and operational complexities, as well as increased performance. Who to Talk To: Main Contacts: Surgery Center Administrators, Business Office Manager, and Surgeons/Owners Questions to Ask: Are you happy with your current profits and have you wondered if there are ways to improve your profit margins? What is your current Health Information System (HIS)? Is your HIS Internet or Cloud based? Do you pay yearly licensing fees along with monthly support fees? Do you utilize a business intelligence application in conjunction with your HIS to help better manage your case costing and profits Do you manage all of your back office functions (revenue cycle and accounting) or do you have any outside companies helping? If utilizing an outside company to provide revenue cycles services, what is your fee arrangement? (This question is asked later in the process unless sales rep already has a good relationship with client). What is your current accounting software? Is it Internet based or is it local software downloaded on your center’s computer? Do you have an accountant on staff or do you have an accountant on retainer? What experience does this accountant have in the ASC Industry? Business Challenges and Targeting Summary: Business challenges include: o Long Sales Cycle - Starting discussions with centers (the right person at the right time – often timing is the issue.) o Helping centers see the value in remaining independent and how hiring an outside company can help them be profitable, that by outsourcing back office functions, they can be profitable and allow them (the center) to focus on quality and the clinical portion of their business o Newer company with smaller amount of clients o Target - Centers that want to remain independent but lack some of the resources hospitals and or management companies can provide. Supplier Overview: Pricing: Revenue Cycle Management Services – 4% to 7% of collections. This percentage depends on patient volume, in-network, out-ofnetwork, and surgery specialties. If all revenue cycle services are used, Amblitel’s Revenue Cycle IT application and ASC InSight™ (see description under IT Platform) are included in this pricing (does not include initial set-up and training charges) which often provides a good discount to current overall pricing the center is paying for all these services/solutions. Accounting and Financial Management Services – $4,500 per month. This includes 2 licenses for Amblitel’s Accounting and Financial Management Technology application (does not include initial set-up and training charges). Information Technology Platform – Revenue Cycle Information Technology Application - $3,200 per month (for a 2 OR facility, additional OR’s could incur an increase in price per month) with a one-time set-up and training charge of $8,250 depending on size of facility Accounting and Financial Management Technology Application – $350 per month for two users (A minimum of two users are required. Additional users have a $125 per month charge) with a one-time set-up and training charge of $2,500 ASC InSight™ (Business Intelligence Application) – $1,100 per month with a one-time set-up and training charge of $2,750 Consulting Services – Amblitel’s fees for consulting services will vary depending on the need and complexity of the project. Clients can select pricing on a per hour consulting rate or as a fixed amount per engagement. Strategic planning services Revenue cycle assessments, audits, and re-engineering Benchmarking of an ASC’s financial, operational and clinical areas comparing to industry norms Materials management assessment and re-engineering Informational technology performance Comprehensive managed care contracting and third-party payor contract review ASC valuation Feasibility studies ASC management – interim administrator, etc. Mergers and acquisitions support services Other ASC specific business related services Hospital Perioperative Assessment – Amblitel’s fees for performing a hospital perioperative assessment will vary depending on the size of the hospital, including the number of operating rooms, procedure rooms, recovery rooms, etc. Key Program Highlights: Improves revenue cycle effectiveness, reduces costs, reduces business office complexities, increases back-office efficiency, and maximizes profitability Internet based revenue cycle system eliminates the worry of data crashes, the need for back-up data files, configuring security firewalls, and the costly purchase of software, hardware and ongoing maintenance fees Tools and services specifically designed for surgery centers to better manage their revenue Internet based accounting application eliminates the worry of data crashes, the need for back-up data files, configuring security firewalls, and the costly purchase of software, hardware and ongoing maintenance fees Competitors and Key Differentiations: Company Source Medical (There are too many other companies to list but most will be similar to Source yet only provide the HIS or revenue cycle services) Focus The largest provider of outpatient information solutions and revenue cycle management services for ASCs, specialty hospitals, and rehabilitation clinics nationwide. Why Are We Different? Over 30 years ofspecific ASC industry experience in the same areas that Source provides yet as a smaller company we provide more of an a-la-carte offering along with more personalized service. We can often provide better pricing and are willing to negotiate more in all areas of revenue cycle operations. Intuit - QuickBooks #1 rated small business accounting software. Saves you time so you can focus on running your business. Accounting software made easy. Local Accountants Charge by the hour. Centers reach the point where they need to update to a more comprehensive financial management and accounting system that offers increased functionality and improved financial controls. 30 years of specific ASC industry Local, so client perceives convenient. Management Companies All vary to some degree; however, their focus is in taking over centers and running them more effectively based on their experience in running surgery center businesses. They take ownership usually which always leads to changes in policy and often personnel. experience so able to help develop and deliver detailed budgets Access to proprietary reports to improve managing of profits. Fixed monthly fee so can budget more accurately Like have a controller as employee Provide similar resources to allow center(s) to be profitable without having to provide a percentage of profits by having to sell minority or majority ownership in center to the management company. Value Propositions: Business Challenge (Pain Points) ASC profit margins are decreasing due to reduced reimbursement and increasing costs Increased government regulation and a more competitive environment have made healthcare business very complicated and difficult to operate. Individually owned ASCs cannot afford to invest in infrastructure to remain competitive as margins shrink. Selling Message (Feature) Value Proposition (Benefit) Medicare/Medicaid and Third Party Payers (insurance companies) have continued to pay ASC’s at a fraction of the reimbursement rate of hospitals (58% of hospital rates). Due to all continual changes, it is difficult for centers to stay up to speed with all the regulations and changes to coding, etc. Amblitel’s objective is to provide independently owned ASCs an option to remain independent and still have access to world class infrastructure to help them remain competitive. Centers often submit claims that are incomplete or inaccurate and then reimbursement is delayed and often overlooked after a long time leading to claims going to collections. Days in Accounts Receivable increases to over 90 days thus affecting center profits. Amblitel can help centers realize a 1-2% increase in revenue, a one-time reduction in accounts receivable of 15-20%, a 3-4% reduction in expenses, and an ongoing annual improvement of $190,000 or more depending on the center size, volume specialty, and annual revenue. Overcoming Objections: Likely Objections Responses Not interested in change right now, satisfied with current services “I understand that change can be a daunting experience. Can you tell me exactly what part of your current services you are happy with and what you would improve if you could?” (This can lead to many different paths. The focus should be on showing how we can increase profits while reducing costs and complexity). I can understand that costs and expenses are important to you, especially in our current economy. To help me better understand your current fees and services, what functions does your current vendor manage (patient verification, transcription, coding, billing, accounts receivables, collections, etc.)? (This can now lead into discussions around increasing profits while reducing expenses and complexities). While we are a smaller company than “XYZ”, our personnel have all worked in the ASC industry for 15 to 30 years (or more) and have very specific experience in helping centers increase profits. Amblitel is a newer company (in its third year of operations) and was started to help centers remain independent and do so less expensively. We would be more than willing to provide references Less expensive Not as many clients as larger companies or management companies We do our own back office functions (revenue cycle and accounting) of centers we have worked with or are currently working with so you can understand the value and profitability we are able to provide our clients. I understand that having control of your business is important. I also understand that in the reduced profits environment we are currently in, every penny counts. Often, vacation, illnesses, or changes in personnel can lead to downtime for your business staff which can adversely affect profitability. Outsourcing or keeping these functions in house is a dilemma that many centers face. By outsourcing these functions you might actually have better control of your profits. (This then hopefully leads to a discussion around reduced costs (FTE’s, benefits) and increased profits). Call to Action/Close/Steps to Implement: Most important thing is to get time for a demo of our solutions and into a detailed discussion of our services and solutions so as to show the client the value we can provide. Key Contact: For Additional Information, Please Contact MDR™, 559-447-4488.