In any medical office, billing is a critical process. Not only does billing generate revenue for the practice, but it also plays a vital role in maintaining accurate patient records. This is why your company should be a partner that you can rely on to help you overcome any challenges that may arise.
However, medical billing can be a complex and time-consuming task with many potential challenges. If not addressed properly, these challenges can lead to disruptions in your practice’s cash flow and revenue and cause you to lose money.
In this article, we’ll discuss some of the most common medical billing challenges and how to overcome them.
- Lost Revenue: Sometimes, you look at your bottom line and wonder where all the money went. You know you saw patients and completed procedures, so where is the revenue? There are a few possible explanations:
- Billing mistakes: This is a common cause of lost revenue. Whether it’s an incorrect patient identifier, a coding error, or something else, billing mistakes can cause you to lose money. To avoid this, work with your medical billing company to ensure that all claims are accurate before they’re submitted.
- Patient’s non-payment: When patients don’t pay their bills, it can put a strain on your practice’s cash flow. To encourage patients to pay, you can offer a discount for early payment or set up a payment plan. You can also work with your medical billing company to send out monthly statements or make automated phone calls to remind patients of their balance.
- Failed collections: When you don’t collect payments from patients or insurance companies, it can have a major impact on your practice’s cash flow. To avoid this, work with your medical billing company to establish a collections process. This may include sending out monthly statements, making phone calls, or even hiring a collection agency.
- Unbundling: This is when insurers refuse to pay for a procedure because they say it should be billed separately. For instance, if you bill for a procedure that includes an X-ray, the insurer may deny the claim and say that you should have billed for the X-ray separately. To avoid this, be sure to check with your payers before billing to see if there are any restrictions on bundling.
The best way to overcome lost revenue is to work with a medical billing company that you can trust. They will help you avoid billing mistakes, appeal denials, and collect payments.
Coding Challenges
One of the most common medical billing challenges is coding. With so many different codes and regulations, it can be difficult to keep up with the latest changes. If you use outdated or incorrect codes, it could result in a denial or delay in payment. To avoid this, work with your medical billing company to ensure that all of your claims are coded correctly.
Incorrect codes are one of the leading causes of denials. To avoid this, you need to be sure that all of your claims are coded correctly. You can do this by working with your medical billing company and staying up-to-date on the latest coding changes.
Late Payments
Another medical billing challenges that many practices face is late payments. This can be incredibly frustrating, especially when you know that the insurance company has already paid the claim.
One way to help overcome this challenge is to contact the insurance company directly. Oftentimes, they will be able to give you a status update on the claim and let you know when you can expect payment.
If you are still having trouble getting paid, you can also reach out to a medical billing company. They will have a team of experts who can help you get the payment you deserve.
Keeping Patient Information Up-To-Date
One of the most important aspects of medical billing is keeping patient information updated. This includes their contact information, insurance information, and any other changes that may have occurred since their last visit.
If you don’t keep this information up to date, it can lead to a number of problems down the road. For example, you may end up billing the wrong insurance company or sending a bill to an outdated address.
To avoid these problems, it’s important to have a system in place for updating patient information. This can be as simple as having your staff update the information in your practice management software every time a change occurs.
Tracking and Resubmitting Denials
This is one of the worst medical billing challenges that practices face. When a claim is denied, it can be extremely time-consuming to track down the reason why and resubmit it.
When you get a denial, the first step is to contact the insurance company. They should be able to tell you why the claim was denied and what you need to do to resubmit it.
However, this is not always as simple as it sounds. Insurance companies can be notoriously difficult to get a hold of, and they may not always give you the information you need. This is why it is always wise to hire a medical billing agency to deal with this challenge.
Managing Accounts Receivables
Accounts receivables are the lifeblood of any medical practice. Without proper management, your accounts receivable can quickly get out of control and put a strain on your cash flow.
There are a few ways you can overcome this challenge, including:
- Train your staff: Your staff, especially the accounts team, should be properly trained on how to manage accounts receivables.
- Regularly review your procedures: You should regularly review your procedures to make sure they are effective and efficient.
- Use technology: There are a number of software programs that can help you manage your accounts receivable more effectively.
Final Thoughts
Medical billing is a complex and ever-changing process. By staying on top of the latest changes, regularly reviewing your procedures, and using technology, you can overcome many of the challenges associated with medical billing. If you find yourself struggling to keep up with the demands of medical billing, consider outsourcing this function to a professional medical billing company.
When hiring a billing company, ensure you do your due diligence. Request referrals, ensure they have a responsive website, check out third-party review sites for reviews, and get a feel for their customer service. You want to partner with a company that is responsive to your needs and will work with you to resolve any issues that may arise.