Denials make up an important part of the cost of running a practice as services provided but not paid can significantly affect the profitability of a practice. But the increasing complexity of insurance contracts, falling reimbursements and claims denials are a harsh reality for most practices today.
In the current demanding healthcare environment a good billing system which can accurately recognize denials, denial trends and their causes is a requisite to high productivity and reduced costs.
Industry Averages
| Preventable Denials = 90% | Denials that are Recoverable = 67% |
This is manageable but with an efficient billing system, and also essential considering-
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How can preventing denials affect the Bottom Line?
Claims rejected on the 1st Submission are 30% and only 50% of these claims get resubmitted on an average, which is a substantial amount of claims unpaid due to lack of control over the billing process. Moreover the cost of working the average denial being high, the practice incurs various staff and office expenses even equaling to 10-15% of the earnings. This spare income otherwise could have been reinvested into staff, equipment, or for future use, hence preventing denials can drastically help cut costs, improve efficiency and also increase profitability.
As too many denials can create a cash flow problem industry experts’ state- depending on the size of the practice, claims written off as denied, should not amount to more than 4%!
Preventing denials requires a comprehensive billing system including-
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Proper insurance verification process, complete documentation, regular reports, tracking of underpayments and denied claims, on par industry training, efficient collection tools and updated software.
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Tracing denials to different functions within the practice, monitoring denial rates, constant payer and industry research to identify upcoming opportunities and changes to prevent billing errors and denials.
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Clear policies and processes for handling claims denials and regular updating of processes and policies to eliminate recurring errors along with periodic audits in areas which require improvements.
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Take control of your denial management with MBC’s billing solutions…..
MBC providing billing services across all 50 US States and varied specialties expert provides denial management services meet national and local requirements for medical necessity and complies with commercial claims stipulations. MBC’s combined resources of expertise, knowledge and technology helps get-
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MBC billing services help reduce denials by more than 70%
overall increasing collections by 15-20%!
