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That Time a Staff Member Scheduled Two Caregivers for a Non-Billable Hour

Healthcare scheduling is no easy task. In the hustle and bustle of managing patient care, staff schedules, and billing, mistakes are bound to happen. But sometimes, these innocent mistakes can snowball into payroll nightmares that affect both the team and the bottom line.

In this article, we’ll explore a common scheduling mistake—assigning caregivers to non-billable hours—and how it led to a payroll nightmare. We’ll also cover how to avoid similar issues in the future.

Key Takeaways

• Scheduling errors can lead to payroll problems. An innocent mistake, like scheduling caregivers for non-billable hours, can result in paying employees for work that isn’t reimbursed.

• Overstaffing non-billable shifts can cause financial strain. When more caregivers are scheduled than necessary for non-billable hours, you end up paying for services you can’t bill for.

• Preventing overstaffing requires careful attention to scheduling. Having a system in place to confirm pay codes and visit types can help avoid costly errors.

• Automated tools can help. Platforms like Staffingly review visit types and pay codes before finalizing schedules to prevent costly mistakes.

  

A Conversation on Scheduling Mistakes: Dr. Smith and Dr. Joe

Dr. Smith: “Joe, I just found out we’ve been overpaying for caregiver shifts because we scheduled them during non-billable hours. I’m worried this mistake could cause us some serious payroll problems.”

Dr. Joe: “Yeah, I’ve seen that happen before. It’s an easy mistake to make when you’re trying to cover all the shifts, but those non-billable hours are tricky. Scheduling more caregivers than needed just adds unnecessary costs to payroll. We can’t bill for that time, so it all comes out of our pocket.”

Dr. Smith: “That’s exactly what happened. One of the staff members didn’t realize the hour was non-billable and scheduled two caregivers. Now, we’ve got to pay them for time we can’t bill. How can we prevent this from happening again?”

Dr. Joe: “We need a better system for checking pay codes and visit types before we finalize the schedule. It could be as simple as using a tool like Staffingly, which automatically reviews the visit types and pay codes before confirming shifts. That would prevent errors like this one from slipping through the cracks.”

Dr. Smith: “I see. So, with a tool like that, the system would double-check everything before we approve the schedule?”

Dr. Joe: “Exactly. It saves us time and money in the long run. Plus, it helps keep us compliant and organized, reducing the chances of mistakes like this affecting our bottom line.”

Dr. Smith: “I’m sold. Let’s get started with that right away.”

Why This Happened?

Here’s why this scheduling mistake turned into a disaster:

• Lack of Clear Guidelines: The scheduler didn’t verify whether the shift was billable or non-billable, simply assuming that more hands would make the work go faster.

• Overstaffing Non-Billable Hours: Healthcare practices sometimes have periods during the day that are designated as non-billable, like breaks, training sessions, or administrative hours. Overstaffing these times means paying more employees than necessary, cutting into the budget.

• No System in Place to Double-Check Pay Codes: There was no automatic system to flag when a shift was non-billable, so the payroll department ended up processing hours for caregivers that they couldn’t bill for.

The Financial Impact

The mistake may have started small, but the consequences quickly added up:

1. Unnecessary Payroll Costs: The two caregivers were paid for time that didn’t generate any revenue. This resulted in unexpected payroll expenses that had to be covered out-of-pocket by the practice.

2. Budget Strain: Overstaffing non-billable hours led to a strain on the practice’s payroll budget, diverting funds from areas that could have been used for billable services or investment in better tools.

3. Delays in Processing: The payroll department had to spend additional time correcting the mistake, leading to delays in payments to other staff and a disruption in workflow.

4. Employee Frustration: While the caregivers in question were paid for their time, the mistake led to frustration among other staff who had to deal with the fallout from the error.

Preventing Scheduling Mistakes in the Future

How can you prevent such a payroll nightmare from happening again? Here are some steps you can take:

1. Clarify Pay Codes and Visit Types: Ensure that your scheduling system is clear about what constitutes a billable vs. non-billable shift. This way, scheduling errors can be flagged early on.

2. Automate the Verification Process: Use scheduling tools that automatically review visit types and pay codes before confirming shifts. This will ensure that caregivers are scheduled for the right type of work, and payroll discrepancies are avoided.

3. Training for Staff: Ensure that staff members who handle scheduling have a solid understanding of your billing structure. This reduces the chances of mistakes and overstaffing during non-billable hours.

4. Double-Check Schedules Before Confirmation: Have a final review process in place where both the payroll and scheduling departments can review shifts for potential mistakes before confirming them. This extra step can save time and money in the long run.

What Did We Learn?

This payroll nightmare began with a simple mistake—overstaffing during non-billable hours. However, it quickly turned into a major financial headache. By setting clear guidelines, automating verification processes, and ensuring proper training, you can avoid similar issues in your practice.

Using a platform like Staffingly, which reviews visit types and pay codes before confirmation, can help eliminate these costly mistakes and streamline your scheduling and payroll processes.

What People Are Asking

Q: How do you prevent overstaffing non-billable shifts?
A: To prevent overstaffing, make sure your scheduling system is designed to identify non-billable hours and avoid scheduling more caregivers than needed during those times. Automated tools like Staffingly can help flag non-billable shifts and review pay codes before finalizing schedules.

Q: What is the impact of overstaffing non-billable shifts?
A: Overstaffing non-billable shifts results in unnecessary payroll expenses that can affect your budget. These costs are not reimbursed by insurance, so it’s important to ensure you don’t have more staff scheduled than necessary during these hours.

Q: How can I ensure my team is scheduling correctly?
A: Provide training on your billing structure and scheduling guidelines, and use a system that checks pay codes and visit types automatically. This can help reduce errors and ensure your team is scheduling shifts correctly.

Disclaimer

For informational purposes only; not applicable to specific situations.

For tailored support and professional services,

Please contact Staffingly, Inc. at (800) 489-5877

Email : support@staffingly.com.

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