There are many medical practices that stand to lose revenues simply by complacency. When you are not diligent in collecting the money owed to you for medical services rendered you are losing out. As well electronic billing and/or medical coding services can help increase revenues by reducing the costs of submitting claims.
Some Sobering Numbers
The majority of medical practices in America stand to lose as much as 14 percent of their revenues due to the cost of submitting claims. Those who elected to use electronic methods or work with medical coding services reduced this down to 1 percent. The average medical practice fails to collect as much as 25 percent of their well earned revenues due to a lack of organization and diligence in accounts receivable best practices. The use of electronic billing and coding as well as using billing or medical coding services can increase revenues.
The Proper Billing Cycles
Because many practices are so busy, they tend to find it challenging to follow proper billing cycles. Part of the challenge is following up on electronic remittance advice submitted to you by insurance companies as well as a poor understanding of effective medical coding. This results in lost revenues. If you do not maintain records, follow up on remittance advice and be more proactive with collections from patients you are losing tens of thousands of dollars annually and for larger practices even monthly.
Improved Account Receivable Process
In order to ensure you are receiving the revenue you are generating you have to see improvements in the following areas:
- Collections: By allowing patients and/or insurance companies to get away without paying, you are robbing yourself of revenue. It is important to have a tracking system that allows you to stay on top of outstanding accounts and to be proactive in following up on payment demands.
- Data Entry: Ensuring staff are processing billing and coding properly and accurately will help raise revenues when medical coding is done correctly. Medical coding services have the expertise to code accurately so you get more bang for your buck.
- Automated Processes: The more your billing processes are automated the better your days sales outstanding metrics. Working with electronic billing or billing and medical coding services will make for faster payments.
Paying closer attention to your outstanding accounts as well as staying on top of remittance advice will drastically increase your potential revenues.