Effective medical billing Revenue Cycle Management contributes to the success of any medical practice – and that’s a fact. Most practices finds it hard to generate better revenues due to delayed or rejected claims. Most medical practices would lose about 30% of their revenues to various issues.
Implementing a few efficient Revenue Cycle Management practices can help in overcoming these dilemmas and enhance any practice’ profitability.
The following are a few of the practices to optimize your medical billing and improve your revenue cycle:
Handle Denials Efficiently
Avoiding denial of claims is very important to steer clear from accumulation of debts and increased expenses. All medical practices and health care providers should come up with an efficient technique that would help them to manage the denials and make quick appeals for the claims to be settled. Practices which are unable to manage denials end up losing a lot of revenue which can actually have a direct impact on their financial position.
In order to avoid this, medical practices should actually come up with a plan that will help them to reduce the number of denials. The first step for this is to identify the reason for these denials. Once this comes to the fore, the medical staff can ensure that these errors are not repeated. Also practices should become smarter and make sure that the claims are verified on a regular basis and quick action is taken in case of denials and underpayments.
Submitting Claims on a Regular Basis
Noting the Current Management Workflow
Another important practice that should be implemented in every medical facility to improve the medical billing revenue management cycle is to conduct a close examination of the current workflow and check out its efficiency as well as problem areas. By doing this, the practices can actually understand where they are lacking and can come up with plans to improve their workflow.
Reviewing the Codes
A regular review of the coding by the medical practices would help them ascertain whether it is up to date and in sync with the latest regulations. It should be noted that many a times, outdated codes could also be a reason for increased number of denials.
Management of Accounts Receivable
Practices can improve their financial performance with an efficient AR management system in tow as this ensures a recovery of at least 60% to 70% of the denied claims.
It is extremely important to keep track of the claims and not let them accumulate. An effective follow up of denied and delayed claims also helps in improving the whole medical billing revenue cycle management. By incorporating the aforesaid practices into a medical health care process, every medical practice can look forward to improved revenues.