Medical Practices lose approximately 20-30% of their income due to errors made by the internal billing department, as deduced from various studies. If your billing functions including coding, denial follow ups, collection of patient receivables, staffing and accurate charge entries are not done properly, you will end up losing thousands of dollars on a yearly basis.
What is draining thousands from your practice?
Patient receivables : patient payments is where 35% of the total revenue comes from which means, if your staff is not handling the task of billing patients and collecting outstanding balances, your practice will keep losing thousands of dollars every year.
Delayed or no follow-ups : a significant part of your income also depends on how effectively a claim denial is followed-up. Approximately 30% claims are ignored or denied on first submission and 60% of such claims are never resubmitted, which means no payment.
Overstaffing : hiring extra staff to handle the increased billing and coding activities can also increase the costs of your practice because if they are not efficient you will not only lose money due to billing and coding errors but also lose a quarter of your practice cost in paying them salaries.
Billing and coding errors : practices lose dollars also due to down-coding and wrong coding of billing receivables.
How to overcome the loss caused by wrong billing functions?
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Down-coding should be avoided completely and you should bill at the correct level. Your coding should have the back up of proper documentation of every patient
Keep track of all the claims that have been denied by the insurance company along with the reason behind it. Implement a system to handle all denials and follow-ups in a timely manner
There is a strong need to evaluate the capabilities of your staff. If they are not efficient enough to handle the complexities of billing and coding, replace them with competent individuals
To handle errors in collection of patient receivables, staffs will have to be trained thoroughly so that the patients are billed correctly and all the billing procedures are met
At a time when the government is implementing new healthcare reforms, number of patients is rising, coding is becoming more complex and paperwork is mounting, medical practices seem to be going through tough times in ensuring that all the above mentioned tasks are fulfilled without errors. If focus is placed on patient care, less or no time is left for training and updating the staff to handle billing and coding.
In such circumstances, hiring a billing partner makes sense if you want to strengthen the financial health of your practice while concentrating on the health of your patients.
Medicalbillersandcoders.com has an expert team of billers and coders who are well trained to improve your revenue collection and simplify billing processes to ensure smooth functioning of your practice. We deal with medical claim filing for physicians across 50 US states, relieving them from the headache of managing their monthly funds and revenue cycle.