Posted by Mark Brousseau
An interesting article by Jim Thumma of Optical Image Technology on the Many Faces of Capture:
The Many Faces of Capture
By Jim Thumma, Vice President of Sales and Marketing, Optical Image Technology
Business efficiency starts with the capture of quality data. Whether your information is stored on paper or mixed media, you need accurate, readable information to make sound decisions. After all, data drives every business transaction you make. If images are skewed, characters are illegible, or data don’t match collection criteria and require follow-up, organizational productivity is hindered. To be useful, data must be readable and reliable.
Successful capture requires hardware and software that enable:
- easy, fast capture of documents, images, and content;
- accurate recognition of data within each document/image: de-skewing, de-speckling, or otherwise adjusting for clarity;
- validation, using custom rules for data verification (i.e., a date field allowing only numeric information, or a name field permitting only alphanumeric characters);
- meticulous classification, so people with varying needs can locate needed information later.
What kind of capture is right for you?
Barcode recognition software – If you process high volumes of routine documents such as insurance claims, or college or loan applications, bar code recognition may be appropriate for you. It’s fast and precise, requiring no manual verification because of its inherent accuracy. Using recognition technologies, the software accurately identifies batches and document types and supplies specific document-related information.
Signature capture devices – If your staff needs to obtain point-of-transaction signatures from clients, electronic signature pads make collection much easier. Electronic signature software that’s part of browser-based EDM and workflow eliminates frustrating delays and keeps related business processes moving.
Scanning software – Scanning is the most common method of capture, and for many, it’s the most convenient. Whether you need desktop scanning for lighter demands or high-volume scanners that feed, sort, and classify documents in batches, consider your document requirements carefully:
OCR – Optical character recognition captures type on documents electronically, eliminating tedious, costly, error-prone manual entry.
ICR – Intelligent character recognition captures hand-written letters and characters, using smart technology to verify accuracy or request manual verification.
OMR – Optical mark recognition is highly specialized software, used to capture check marks in boxes, filled-in bubbles, and other shape-filled information on structured forms.
Multi-functional peripherals (MFPs) with scanning capabilities – If you’re looking for a one-size-fits-all solution, MFPs are a great place to start, although you may need EDM for verification and correction. By integrating with EDM software, you can also expand indexing capabilities beyond the limited fields most MFPs allow, making documents and their contents easier to retrieve.
Web-based electronic forms – Adding e-forms as part of a document management system has several advantages:
- Eliminates faulty data by using drop-down menus to guide data entry;
- Increases data accuracy by giving clients ownership of self-submitted information;
- Automates indexing, making information useful as it’s collected.
If you routinely collect customer information, want to eliminate waste and provide customers 24/7 convenience, e-forms are an excellent choice.
Fax capture – If you currently distribute faxes manually or frequently have to follow up with senders about incomplete or poor-quality transmissions, fax capture is worth considering. Data transmitted via fax can be captured, indexed, stored, and routed electronically to appropriate staff Inboxes using automated workflow, saving time.
Email management –Up to 90% of business communications take place via email, so efficient capture and archival of important emails as records is vital. If you use email management (part of an integrated EDM suite) to sort, index, and store emails logically, you’ll be prepared if you are subpoenaed for information or your emails are subject to investigation and audits.
Digital capture alone doesn’t result in efficiency, but quality capture is the first step to achieving it. Understand your needs, evaluate vendors carefully, and choose wisely!
Showing posts with label Optical Image Technology. Show all posts
Showing posts with label Optical Image Technology. Show all posts
Tuesday, November 24, 2009
Tuesday, June 23, 2009
CEO Executive Interview
Complying with New Medicare Reporting Requirements: Insurance CEO Art Meadows Shares Tips for Success
By Laurel Sanders, Optical Image Technology
Insurance companies offering liability coverage, workers compensation, and those that are self insured have struggled to prepare for the new Medicare reporting requirements since the federal mandates were announced. The legislation is expected to reduce Medicare costs by protecting its secondary payer status when eligible claimants can be covered by alternative sources. Unfortunately for insurers, the new laws will increase paperwork, but failing to act on them will carry stiff penalties.
In contrast with previous legislation, the burden of proof now rests on insurers to determine whether tort plaintiffs are eligible for Medicare coverage, and to report this information to the government. The additional tracking can be considerable for those with eligible claimants. Insurers with minimal or no electronic files face the greatest challenges.
The drive toward compliance recently picked up speed: registration opened in May, 2009 for Responsible Reporting Entities (RREs) to express their intent to comply with the electronic reporting requirements. Those who haven’t adjusted their plans, policies, and systems to enable timely reporting must take action soon. Federal delays in enacting the legislation have ended. Fines for non-compliance or late reporting will be severe.
I asked Art Meadows, President and CEO of Panhandle Farmers Mutual Insurance Company and a recognized leader in the insurance field, if he would share some tips to help other insurers make sure they’re able and ready to comply. He shared his expertise and advice during a recent interview:
Q: What are the issues associated with the new legislation?
A: There are a number of requirements for insurers. First, they must identify claimants who are eligible for Medicare benefits. Ideally, they periodically download a list of Medicare-eligible claimants from their digital file repository and operating system that shows all pending claims and upload it to the Medicare site, or they can create and post the lists manually. As it currently stands, quarterly reports will be due starting in 2010. All pending claims must be tracked and reported as long as each claim remains open. If settlements, awards, or judgments are made, these also must be reported.
For insurers, the new legislation is all about facilitating compliance, mitigating risk, and minimizing the corporate expense of managing pertinent information.
Q: What kind of penalties are there for late or omitted reports?
A: Penalties are stiff, amounting to $1,000 per claimant per day. Since reporting will be quarterly, it could take a long time for companies to discover if they’ve made a mistake or omission. Fines could easily amass into hundreds of thousands of dollars with a small number of omissions or late reports. My advice to insurers: don’t just count on employees remembering to file, even if your company is small and files seem manageable. You will need to have a system in place that ensures reporting is done on time and no claimant is missed.
Q: Which companies will be most affected by the new requirements?
A: Companies that will struggle most are those without technology and electronic records. Many successful companies fall into this category. Some don’t even have Internet access in their offices. Without electronic records, a system that ensures reporting dates are met, and some form of automated tracking of eligible claims, compliance will be difficult, time consuming, and potentially prone to error. This could prove to be very costly due to fines.
Companies that have automated operating systems with electronic files and handle many liability claims may encounter fewer problems than those that have a small number and handle them manually. It’s difficult to remember to provide reports if your company only processes a few each year, and even fewer involving Medicare-eligible recipients. Administrative and litigation delays mean cases can remain open for years. Required reporting on claimants can last a long time.
Q: There are numerous companies offering to take on the burden of Medicare reporting for a fee. What are your thoughts about this?
A: This may be a good—or even necessary—situation for some companies, particularly if they are resorting to manual posting of reports. However, entrusting reporting to any outside organization puts your company at risk. Remember: you are delegating the task, but the responsibility to comply is still ultimately yours. I’m not sure I would want to relinquish the responsibility to someone else and risk penalties that might be avoidable by doing my own reporting. If you are considering using an outside agency, consider the risks and proceed carefully.
Q: What is your company doing to ensure it’s prepared when the new rules take effect?
A: Fortunately, we purchased a robust electronic document management system in 2003 and have created electronic reports for several years. Additionally, we are involved with a vendor and five other regional companies in developing a new operating system that will track and report these claims automatically. With direct integration to the Medicare site, we will be able to upload our reports easily, avoiding the time-consuming battle of manual entry.
As a part of our monthly close-out process we already create a variety of reports, such as agent commission checks and A+ ISO reports. We plan to add the Medicare reports as part of that process.
Q: What steps should companies take to register, and what should they expect?
A: Eligible insurers—those that underwrite liability insurance—must register with the Centers for Medicare and Medicaid Services. They must indicate that they are a Responsible Reporting Entity (RRE) and provide notice of their intent to comply with the electronic reporting requirements. They will then receive a company identification number and login information for the CMS program. Companies that still handle processes manually will need to input their information manually on the CMS website.
Q: Is there any additional advice you would like to share with insurers that are struggling with the new rules?
A: If you haven’t begun planning yet, start now. Register well ahead of the September deadline. The information you need to get started can be found on the CMS website, and the major insurance associations also have helpful resources.
Consider ways to make compliance easier. If you’re still managing everything on paper, this is a good time to convert to electronic document management.
Put plans in place to ensure prompt filing. Otherwise, late fines could accumulate for months before you are aware of them. Mistakes are costly. If you already have a digital repository with your policies, claims, and supporting documentation, you can simplify compliance with electronic workflow, establishing rules to remind you of impending deadlines and enforce timely reporting. Lastly, work with your operating system vendor to put programming in place that will track and monitor claims that need to be reported to CMS.
Q: Clearly digital documents make reporting easier. How else do document management and enterprise content management software fit into the compliance picture?
A: Digital trails don’t lie, and they don’t err. They show every document that’s captured and every transaction that occurs. If information is stored electronically and indexed for search, it will be found every time. In an audit, digital tracking of claims, related correspondence, and supporting materials ensures transparency and accuracy. With proper digital storage, files can’t be overlooked.
Finally, if you’re ready to convert to electronic records, or want to replace your imaging system with a better solution, talk with insurers like me who have successfully converted to digital records and electronic reporting. It’s an investment of time and money, but the payback is relatively quick. The increase in productivity and the savings long-term are significant. With recent increases in legislation, and more laws to follow, there’s no better time to invest in your future.
Art Meadows is the President and CEO of Panhandle Farmers Mutual Insurance Company in West Virginia. A National Association of Mutual Insurance Companies (NAMIC) Professional Farm Mutual Manager of the Year (2007) and recipient of the Service Award (2006), he has been a member of the NAMIC Merit Society since 1999. Formerly an insurance agent, property inspector, claims adjuster, and commercial/personal lines underwriter, Art served on the Governor’s Task Force to support West Virginia Tort Reform in 2005 and was president of the West Virginia Association of Mutual Insurance Companies from 1996 to 2005. Art can be reached at art@phfm1898.com.
For information about Optical Image Technology and the DocFinity suite of integrated imaging, document management, and business process management/workflow software, visit www.docfinity.com.
By Laurel Sanders, Optical Image Technology
Insurance companies offering liability coverage, workers compensation, and those that are self insured have struggled to prepare for the new Medicare reporting requirements since the federal mandates were announced. The legislation is expected to reduce Medicare costs by protecting its secondary payer status when eligible claimants can be covered by alternative sources. Unfortunately for insurers, the new laws will increase paperwork, but failing to act on them will carry stiff penalties.
In contrast with previous legislation, the burden of proof now rests on insurers to determine whether tort plaintiffs are eligible for Medicare coverage, and to report this information to the government. The additional tracking can be considerable for those with eligible claimants. Insurers with minimal or no electronic files face the greatest challenges.
The drive toward compliance recently picked up speed: registration opened in May, 2009 for Responsible Reporting Entities (RREs) to express their intent to comply with the electronic reporting requirements. Those who haven’t adjusted their plans, policies, and systems to enable timely reporting must take action soon. Federal delays in enacting the legislation have ended. Fines for non-compliance or late reporting will be severe.
I asked Art Meadows, President and CEO of Panhandle Farmers Mutual Insurance Company and a recognized leader in the insurance field, if he would share some tips to help other insurers make sure they’re able and ready to comply. He shared his expertise and advice during a recent interview:
Q: What are the issues associated with the new legislation?
A: There are a number of requirements for insurers. First, they must identify claimants who are eligible for Medicare benefits. Ideally, they periodically download a list of Medicare-eligible claimants from their digital file repository and operating system that shows all pending claims and upload it to the Medicare site, or they can create and post the lists manually. As it currently stands, quarterly reports will be due starting in 2010. All pending claims must be tracked and reported as long as each claim remains open. If settlements, awards, or judgments are made, these also must be reported.
For insurers, the new legislation is all about facilitating compliance, mitigating risk, and minimizing the corporate expense of managing pertinent information.
Q: What kind of penalties are there for late or omitted reports?
A: Penalties are stiff, amounting to $1,000 per claimant per day. Since reporting will be quarterly, it could take a long time for companies to discover if they’ve made a mistake or omission. Fines could easily amass into hundreds of thousands of dollars with a small number of omissions or late reports. My advice to insurers: don’t just count on employees remembering to file, even if your company is small and files seem manageable. You will need to have a system in place that ensures reporting is done on time and no claimant is missed.
Q: Which companies will be most affected by the new requirements?
A: Companies that will struggle most are those without technology and electronic records. Many successful companies fall into this category. Some don’t even have Internet access in their offices. Without electronic records, a system that ensures reporting dates are met, and some form of automated tracking of eligible claims, compliance will be difficult, time consuming, and potentially prone to error. This could prove to be very costly due to fines.
Companies that have automated operating systems with electronic files and handle many liability claims may encounter fewer problems than those that have a small number and handle them manually. It’s difficult to remember to provide reports if your company only processes a few each year, and even fewer involving Medicare-eligible recipients. Administrative and litigation delays mean cases can remain open for years. Required reporting on claimants can last a long time.
Q: There are numerous companies offering to take on the burden of Medicare reporting for a fee. What are your thoughts about this?
A: This may be a good—or even necessary—situation for some companies, particularly if they are resorting to manual posting of reports. However, entrusting reporting to any outside organization puts your company at risk. Remember: you are delegating the task, but the responsibility to comply is still ultimately yours. I’m not sure I would want to relinquish the responsibility to someone else and risk penalties that might be avoidable by doing my own reporting. If you are considering using an outside agency, consider the risks and proceed carefully.
Q: What is your company doing to ensure it’s prepared when the new rules take effect?
A: Fortunately, we purchased a robust electronic document management system in 2003 and have created electronic reports for several years. Additionally, we are involved with a vendor and five other regional companies in developing a new operating system that will track and report these claims automatically. With direct integration to the Medicare site, we will be able to upload our reports easily, avoiding the time-consuming battle of manual entry.
As a part of our monthly close-out process we already create a variety of reports, such as agent commission checks and A+ ISO reports. We plan to add the Medicare reports as part of that process.
Q: What steps should companies take to register, and what should they expect?
A: Eligible insurers—those that underwrite liability insurance—must register with the Centers for Medicare and Medicaid Services. They must indicate that they are a Responsible Reporting Entity (RRE) and provide notice of their intent to comply with the electronic reporting requirements. They will then receive a company identification number and login information for the CMS program. Companies that still handle processes manually will need to input their information manually on the CMS website.
Q: Is there any additional advice you would like to share with insurers that are struggling with the new rules?
A: If you haven’t begun planning yet, start now. Register well ahead of the September deadline. The information you need to get started can be found on the CMS website, and the major insurance associations also have helpful resources.
Consider ways to make compliance easier. If you’re still managing everything on paper, this is a good time to convert to electronic document management.
Put plans in place to ensure prompt filing. Otherwise, late fines could accumulate for months before you are aware of them. Mistakes are costly. If you already have a digital repository with your policies, claims, and supporting documentation, you can simplify compliance with electronic workflow, establishing rules to remind you of impending deadlines and enforce timely reporting. Lastly, work with your operating system vendor to put programming in place that will track and monitor claims that need to be reported to CMS.
Q: Clearly digital documents make reporting easier. How else do document management and enterprise content management software fit into the compliance picture?
A: Digital trails don’t lie, and they don’t err. They show every document that’s captured and every transaction that occurs. If information is stored electronically and indexed for search, it will be found every time. In an audit, digital tracking of claims, related correspondence, and supporting materials ensures transparency and accuracy. With proper digital storage, files can’t be overlooked.
Finally, if you’re ready to convert to electronic records, or want to replace your imaging system with a better solution, talk with insurers like me who have successfully converted to digital records and electronic reporting. It’s an investment of time and money, but the payback is relatively quick. The increase in productivity and the savings long-term are significant. With recent increases in legislation, and more laws to follow, there’s no better time to invest in your future.
Art Meadows is the President and CEO of Panhandle Farmers Mutual Insurance Company in West Virginia. A National Association of Mutual Insurance Companies (NAMIC) Professional Farm Mutual Manager of the Year (2007) and recipient of the Service Award (2006), he has been a member of the NAMIC Merit Society since 1999. Formerly an insurance agent, property inspector, claims adjuster, and commercial/personal lines underwriter, Art served on the Governor’s Task Force to support West Virginia Tort Reform in 2005 and was president of the West Virginia Association of Mutual Insurance Companies from 1996 to 2005. Art can be reached at art@phfm1898.com.
For information about Optical Image Technology and the DocFinity suite of integrated imaging, document management, and business process management/workflow software, visit www.docfinity.com.
Tuesday, May 26, 2009
To Buy or Not to Buy: That is the Question
By Mark Brousseau
Every executive knows the importance of investing in the future. Laurel Sanders of Optical Image Technology (lsanders@docfinity.com) says that choosing the right investments at the right time is critical to competing effectively.
"In recent years, it’s become clearer to business executives that digital storage, access, and management provide tremendous gains, but they also require an initial outlay," Sanders says. "These days, tighter budgets, decreased revenue, and fewer staff resources make it harder to invest."
EDM and workflow purchases remain steady, but factors driving purchases have changed, Sanders notes. To win new clients, vendors must prove strong ROI and demonstrate how companies can do more with less.
In good economic times, Sanders says management watches the bottom line, but focuses on company ideals. Typical questions include:
How will EDM/workflow advance my business?
How can we gain a competitive advantage?
Will customer service and loyalty improve?
Will it boost our bottom line?
In tough economic times, Sanders says the focus changes:
What is the total cost of ownership?
Are there hidden costs?
Can we afford to maintain it?
How long will it take to achieve ROI?
EDM and workflow eliminate significant costs, letting companies handle more work without additional staff. They automate data collection, document file access, facilitate and expedite work distribution. As staff matriculate, work is absorbed easily by remaining employees.
"Integration with legacy systems, line-of-business applications, and telecommunications increases ROI, typically delivering results within a year—sometimes even months," Sanders notes. "Cost avoidance is considerable, boosting financial performance. Delaying EDM/workflow purchases makes it tougher to compete now, and positions a company poorly to handle growth cost-effectively as the economy rebounds."
EDM and workflow are a wise investment, Sanders concludes. They streamline HR expenses, re-use data cost-efficiently enterprise-wide, and reduce paper, postage, shipping, and storage. ROI is certain. "Moreover, when the economy recovers, the right tools will be in place to reach corporate goals," she says.
What do you think? Post your comments below.
Every executive knows the importance of investing in the future. Laurel Sanders of Optical Image Technology (lsanders@docfinity.com) says that choosing the right investments at the right time is critical to competing effectively.
"In recent years, it’s become clearer to business executives that digital storage, access, and management provide tremendous gains, but they also require an initial outlay," Sanders says. "These days, tighter budgets, decreased revenue, and fewer staff resources make it harder to invest."
EDM and workflow purchases remain steady, but factors driving purchases have changed, Sanders notes. To win new clients, vendors must prove strong ROI and demonstrate how companies can do more with less.
In good economic times, Sanders says management watches the bottom line, but focuses on company ideals. Typical questions include:
How will EDM/workflow advance my business?
How can we gain a competitive advantage?
Will customer service and loyalty improve?
Will it boost our bottom line?
In tough economic times, Sanders says the focus changes:
What is the total cost of ownership?
Are there hidden costs?
Can we afford to maintain it?
How long will it take to achieve ROI?
EDM and workflow eliminate significant costs, letting companies handle more work without additional staff. They automate data collection, document file access, facilitate and expedite work distribution. As staff matriculate, work is absorbed easily by remaining employees.
"Integration with legacy systems, line-of-business applications, and telecommunications increases ROI, typically delivering results within a year—sometimes even months," Sanders notes. "Cost avoidance is considerable, boosting financial performance. Delaying EDM/workflow purchases makes it tougher to compete now, and positions a company poorly to handle growth cost-effectively as the economy rebounds."
EDM and workflow are a wise investment, Sanders concludes. They streamline HR expenses, re-use data cost-efficiently enterprise-wide, and reduce paper, postage, shipping, and storage. ROI is certain. "Moreover, when the economy recovers, the right tools will be in place to reach corporate goals," she says.
What do you think? Post your comments below.
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