=Efficient revenue cycle management is key for medical billing firms’ success. With healthcare regulations constantly shifting and claim denial rates rising, companies must implement effective strategies to optimize their billing processes reduce errors, and boost cash flow.
Utilizing modern technologies, automating tasks, and guaranteeing accurate claim submissions, medical billing firms can reduce errors while improving cash flow decreasing errors, and increasing cash flow. This article details five strategies designed to speed up billing processes while simultaneously decreasing denials and improving overall financial performance.
1. Optimize Your Tools
The right tools can make everything easier. It is a challenge to be a hospitalist billing business that utilizes paper-based processes, similar to having a carpenter who does not use power tools. Cloud-based practice management software and other solutions for medical billing can automate routine tasks and basic billing tasks, allowing employees to focus on work that requires human contact.
It’s crucial to ensure that the PM program manages both CMS-1500 and the UB-04 forms for both institutional and professional billing. This will reduce time, eliminate errors, and help maximize reimbursements.
2. Follow up on Delinquent Claims
Consistent and well-organized follow-ups transform delinquent claims into paid claims. It’s a good idea to assign someone from your staff to review accounts to determine the claims that aren’t being paid on time and the reasons. This can uncover problems with communication or billing mistakes that can be addressed to avoid future issues.
A well-organized process for your staff will aid in reducing late payments and allow them to process claims quickly and without committing any mistakes. Based on what you learn you can decide it’s worthwhile to review the entire cycle of billing. Keep in mind that reducing the amount of late payments will help you improve your cash flow.
3. Have a Proactive Plan for Line or Complete Denials
Denied claims are increasing, as are billions neglected. However, a surprising number of companies don’t take the necessary steps to compensate for this revenue loss. In fact, up to 65 percent of denied claims are not returned.
Rectifying this revenue loss is a top priority for any billing department, especially in a situation where the average hospital is awash with millions in denied claims. Denying these claims is basically leaving money on the table. Fortunately, smart PM software can schedule reminders to follow the denied claims and also restore revenue lost.
4. Demand Accurate Coding and Claim Submission
A crucial aspect of managing the revenue cycle is timely claim submission, which requires quick and precise CPT codes. Effective coding practices allow claims to be processed swiftly and lessen the risk of insurance companies denying claims.
Another area in which the use of good PM software plays a significant role. It assists with code entry and verifies that codes have been entered correctly. Making sure everything is correct prior to filing an application is one of the most effective ways to reduce the risk of denied claims and increase the efficiency of your revenue cycle.
5. Regularly Monitor Key Statistics
Data is becoming increasingly important, and keeping track of KPIs and other critical analytics is essential to the business of medical billing firms. In addition, your PM software must facilitate this by providing an extensive and user-friendly dashboard to navigate information.
It is important to know things like the length of time it takes for claims to be processed, the number of denied claims and the reasons why they were denied, the number of outstanding claims in the present, and much more. The more you are aware of the information that drives your business, the more efficient you’ll be.
