Maximizing Provider Cash Flow &

Minimizing Outstanding Patient Payments through a

Consumer-Friendly, Retail Approach to Healthcare:

The Essential Elements That Must be in Place to Easily

and Quickly Shift to Retail

William Todd AndrosFounder & CEO tevixMD Corp.

“Patient responsibility, the popularity

of high-deductible health plans (HDHP’s)

and the total volume and dollar amount

of patient payments will

continue to rise...

higher deductibles will require

providers to use every tool available to

address the needs and challenges of

patient consumers...**”

www.tevixMD.com 2

The Patient is now your 3rd Largest PayerAfter Medicare & Medicaid*

* Hfma Arkansas Study 2015** -- J.P. Morgan, Healthcare Banking / Patient Payment Optimization.

www.tevixMD.com 3

DON’T BE A SLAVE TO THE OUTER COMPONENTS.

Build an operating foundation on good data and all the components will improve.

Bad data is like having outdated credit card info - It’s of zero use or value

www.tevixMD.com 4

INVALID ASSUMPTION: If the patient has insurance the lab will be paid.

Financially lethal belief

Many in healthcare still

embrace this belief

It’s leading the healthcare

industry into financial turmoil

Caused primarily by the

sharp increase in HDHPs

www.tevixMD.com 5

Finding Insurance ≠ Getting PaidNo Lab is Immune to the Effects of this Trend

Anyone who says they are not feeling it yet

has a rude awakening ahead

...and by then it may be too late

because their competitors will be

well under way and cash rich.

The only solution: patient-centered retail healthcare

www.tevixMD.com 6

WHAT IS RETAIL HEALTHCARE?

NOT urgent care clinics

popping up everywhere.

It is an approach to doing

business – a mindset

/ a philosophy

Retail Healthcare is here, it is not going away and it is essential to financial success for labs.

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A Retail Approach to Healthcare involves 2 Main Activities

ONE

Collecting from the patient before rendering

services – even if just a portion of it – front-end

and back-end labs alike.

TWO

Competing for and selling to the patient

www.tevixMD.com 8

Competing for and selling to the patient...

Create a positive patient experience in a number of

ways: through a comfortable PSC; by communicating

via email and text; etc

Billing transparency with patients: help patients

anticipate, manage and track their healthcare costs

Offer payment solutions that actually work for the

patient

www.tevixMD.com 9

CONSIDER THESE RETAIL CONCEPTS

• Amazon doesn’t ship your order until you pay

• Would you buy a car without knowing the price first?

• Have you ever used reviews to choose a business

or product?

• How often do you see an ad for a medication?

• How often do you shop for the best price?

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INVALID ASSUMPTION: Back-end Labs Cannot Collect Up Front

“Providers have a 70% chance of receiving payment at the time of service if they request it – but only a 30% chance after a patient walks out.”

Academy of Healthcare Revenue

“9 of 10 consumers want to understand payment responsibility up front”

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With the right tools and a

committed shift in SOP

it is an easy process.

Turn in-bound call centers into

OUT-bound call centers!

Yes they can and they must.

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What’s Necessary to Accomplish This?

Good Data – Accurate, verified, up-to-the-minute,

live patient data

Retail-Minded Operating Procedures

The tools to make it possible, easy and affordable

www.tevixMD.com 13

tevixMD Demo

www.tevixMD.com 14

Financial Success in Retail Healthcare

DOES NOT stop with the right tools...

2 Additional things must be in place

that are imperative to success

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ONE: Redefining your SOP

SOP must focus on getting cash in the doorand, at the same time, competing for and selling to the patient.

Create rules for different patient situations:Inability to pay, partial payment, outstanding unpaid balance, etc.

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TWO: Complete Commitment to

across-the-board execution

Every transaction, every timeInsist that the new SOP is followed through directives from the top

Enforce the new procedures Use reports to identify who is bringing in the cash and embracing retail and who is not

The importance of this step cannot be over stated!

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For success, a shift like this requires complete commitment. Nothing less will do.

The commitment must start at the top, migrate down into business operations through directives,

and be regularly enforced.

Walk into a BestBuy and you will find employees following procedures to create the best customer experience

and to compete for your business.

www.tevixMD.com 18

This is Simple...

Everything you need already exists in the cloud

Generating good data requires only a Driver’s

License or a Name/Zip

The entire process is app-based -- everything is

performed from one screen

There is nearly no IT involvement to set up

Very low capital cost

The app scales easily with volume

www.tevixMD.com 19

KISS: Keep it Simple for Lasting Results and to Get Cash in the Door ASAP

An immediate, abrupt shift is not necessary

Just get started and generate some cash to keep

your lab alive

Don’t do everything at once

This is an evolutionary process

Turn your cash position around quickly and give yourself breathing room to adopt the next steps.

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An Evolutionary Process...

Add functionality by taking on more aspects of a retail business and creating value from the patient’s perspective.

Next thing you know, your business will be full-blown retail and competing with the best of them.

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A Cash ExampleHere’s what it can look like in terms of cash for your lab

How much are you leaving on the table?

Claims per month: 10,000

Average Claim: $45

Retail Healthcare Approach, at the minimum

Minimum charge /patient: $20

Min cash per month: $200k that’s $10k/day, net cash

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CONCLUSION

Competition is coming to every corner of healthcare, no matter who you are – for many it is already here with devastating consequences.

Retail is the key to financial survival and that means selling value to the customer and getting cash in the door.