As long as patients are forced to pay bigger share of their medical bills, bad debt will remain a cause of concern for the healthcare providers. Even when the patients gain insurance coverage under the healthcare reform, the patients still end up paying major chunk of their medical bills.
Although the healthcare industry is least affected by the recession, it is still not immune to more careful spending. These days, more and more patients are paying out-of-pocket instead of being covered by third-party payers.
MGMA and other industry studies conclude
|Bad Debt and write-offs are becoming increasing frequent and can represent 5% or more of billings.|
|Approximately 50% of patient accounts with capacity to pay were written off as bad debt, instead of being re-billed or outsourced.|
|Over 17% patient eligible for government assistance or charity care programs are also written off.|
|Most practices leave over 24% of their revenue uncollected.|
Bad debts can be a major cause of concern if it exceeds the 5% mark. Many healthcare providers do a good job in managing patient receivables and associated bad debt expenses, but it still remains a cause of concern for majority of physicians. Improved revenue cycle performance to reduce bad debts and denials can account for 2-4 percent of additional net patient revenue, which can amount to big money for certain providers.
Three easy steps to prevent bad debts at your practice
MBC helps physicians reduce bad debts:
All these actions help reduce bad debts and increase your practice efficiency and revenue.
Medicalbillersandcoders.com has been successfully helping clients improve bad debts and write-offs to increase revenue. MBC is the largest consortium of billers and coders providing medical billing across all 50 US States in varied specialties. Our team constantly works to identify opportunities to help improve accuracy, compliance, and productivity in the health care system.
MBC constantly aims to prevent bad debts and write-offs by vigilant monitoring of claims submitted to improve accuracy, compliance and productivity