What is the reason that some practices lose money and others have their finances at a minimum? All of it is related to how efficiently the revenue cycle functions.
The healthcare revenue cycle encompasses everything from the billing of patients to collecting insurance payments.
Any problems in the system can cause a lot of damage to a practice. Revenue cycle issues in healthcare like poor claims or a lack of follow-ups drain money that should remain within the banking institution.
Every dollar counts when operating medical offices and expenses such as the cost of staff salaries and supplies in the process of increasing. In the event that revenue falls through the cracks it can make it more difficult to pay for costs and expand. Here’s how to fix these leaks and keep the revenue cycle running smoothly.
Healthcare Revenue Cycle – Stopping the Losses
Get Claims Right the First Time
Incorrectly submitting insurance claims is an easy way to make funds. The wrong codes or the incorrect information can result in denials, and repairing them takes time and money.
One clinic reduced the rate of rejection by 25 percent just by double-checking the paperwork prior to sending the paperwork off. Claims that are clear mean faster payments and less stress.
People who aren’t paying will eat into the budget, if no one chases them down. Making payment reminders or plans for payments keeps money coming in, instead of building up into bad debt.
One small change can increase collections by a significant amount when you text people with overdue balances.
File Claims Quick
In the event of a delay in submitting claims is like giving the insurers back money. The majority of claims have deadlines that if they are not met, it could mean no payment at all.
One office was unable to pay a fat check due to a claim that was beyond the deadline; now they pay everything within one or two days.
Keep Denials in Check
Insurance companies love to deny claims due to tiny mistakes.
Being aware of the regulations and catching mistakes prior to submission helps keep those rejections to a minimum. A doctor’s team was able to go from a plethora of rejections, to nearly none after tightening their procedures.
Use Smart Tools – Healthcare Revenue Cycle
Poorly organized spreadsheets or outdated systems allow mistakes to slip through. A good software can spot errors and monitor payments, so there is no chance of being missed.
One of the practices was to swap their outdated system for one which flagged problems early and saved them thousands of dollars in revenue lost.
Personnel who aren’t familiar with the difference between billing ins and outs could result in a huge amount of money due to confusion. A quick training session on the codes and procedures keep everyone on track and cut down on costly errors.
The receptionist was able to spot a huge mistake following a quick course in the crash, which saved the office from being denied a claim.
Watch the Numbers Close
Leaks are hidden within the court records, but failing to check them leaves money lying around. The regular report shows where money is stuck or drifting away.
One manager noticed the slow payment eating into profits, and he was able to fix it quickly after analyzing the information.
Inconvenient bills discourage people from making payments. Simple, plain-language statements are paid faster than those filled with medical jargon.
The clinic made more timely payments after removing complex invoices in favor of ones that you can understand.
Stay Ahead of Rules
Healthcare regulations are constantly changing and being behind could result in penalties or even lost claims. Staying current with updates to insurance keeps money from disappearing over silly technicalities.
One practice escaped the penalty of a fine after they discovered an update to their policy right on the right.
Cut the Fat
A bloated and inefficient billing procedure can cost money on additional hours or hiring assistance. By streamlining the process, you can keep costs down and allow the team to concentrate on their patients rather than. A small office discarded the biller that was part-time for more efficient processes and pocketed the savings.
Small issues like copays or visits that are not billed can add up quickly. Monitoring your work daily can nip them early before they become a big loss. A group discovered they’d skipped one week of costs; resolving the gap resulted in a substantial amount of cash.
The shock of unexpected bills makes people angry and are less inclined to make payments. Reviewing costs prior to treatment establishes expectations and helps get faster payment of invoices. An adjustment to the front desk such as this has helped a practice to get rid of accounts that were not paid.
Wrapping It Up
Maintaining the healthcare revenue cycle security stops cash from flowing from a clinic. Incorrectly filing claims while chasing payments, and monitoring the data secures cash that could otherwise go unnoticed. It’s about having a strategic system that ensures profits are stable and stress to a minimum.
Do you want to stop revenue leaks for good? Check out PerigonMed for services that tighten up the cash flow.
