The wholesome success of any medical institution is incomplete without a close analysis of its efficiency at Denial Management. The tedious procedure of Medical Billing requires an extensive organization-wide micro-managing of tasks that begins at the front desk and creep into the back end. Sometimes, an insurance company (payer) might refuse to honor the claims made by an individual to pay for services acquired from a healthcare professional.
Such denials adversely affect the revenue, cash flow, and the efficiency of working of your organization. Efficient Denial Management is one of the most important parameters that signal the fertility of your Revenue Cycle Management. Every healthcare professional needs a well-placed Denial Management system that comprises of appropriate billing and coding procedures that prevent denials alongside dealing with claims that get rejected.
Denials can be categorized according to their nature into hard denials which can’t be corrected after filing and soft denials which can be corrected or justified with additional information. Clinics who try to manage the denials they face with untrained manual help solely often result in facing discrepancies, in addition to the cost incurred in employing staff to undertake the whole process.
Reworking a claim that has faced denial previously incurs extra cost with little chances of successful completion. Would you say your Denial Management was efficient in 2016? Here are some questions you need to answer for yourself which will help you to assess the performance of your Denial Management Process. Read ahead:
Q1. Do You Know Why Some of Your Claims Are Being Denied?
The first step towards attaining efficiency is getting to the root cause of the problem. In order to streamline the Revenue Cycle at any medical establishment, the focus needs to be twofold i.e. on maximizing the revenue collection and on preventing the future denials from happening by taking lessons from present denials. Proper tracking of the claim filing and denials faced shall help you understand what is the core weakness of the system you have put in place. The claim denial trends that appear after tracking can always be improved upon.
Q2. Do You Have an Adequate Denial Management Strategy?
When determined to work on the claim management system that you have in place at your medical institution, the foremost thing to ensure is that you track all the claims that you have made. The strategy needs to be twin-faced that works pro-actively in reducing the chances of facing denial and that working on reducing account receivables by speeding up the correction process of claims denied. Moreover, giving preference to workable denials is important if you are facing a large number of denials.
Q3. Is Your Denial Management Procedure Organized?
What comes handy when you are at tackling a complex medical billing and coding procedure is to keep it super-organized at all junctures from billing desk to back end. All the information about the clients needs to be categorized and made readily available to all the staff. For starters, the inadequate organization may cause the risk of losing track of claims you need to refill and can result in heavy losses. Automation technology and a skilled workforce go a long way in keeping Denial Management efficient when they work in harmony.
Information mismanagement, eligibility verification, avoiding claim duplication, and getting into the nitty-gritties of the insurance contract are some of the very crucial parts of the whole procedure. Sometimes, the in-house workforce may lack the much-needed expertise to carry out the medical billing formalities including the tedious denial management. Here, the healthcare providers can always outsource the task to agencies that come with expertise and years of experience in the field to reduce your chances of facing denials.
Q4. Are The Denials You Face Being Adhered to Timely?
A winning Denial Management strategy is to create a cyclic workflow of the denied claims. It’s important that when a denial file makes its way to your desk, there is a working mechanism that corrects the claim depending on the shortcomings and reverts it back to the insurance company within a week or the limit prescribed by the insurance company.
If your denied claims are not being reworked within a week, it sure is time to change trends. You can even switch to a suitable incentive program where employees are rewarded for timely completion, as this can go a long way in enhancing the efficiency of the whole procedure.