The benefits of outsourcing to medical billing companies
You’re a doctor running a small practice, and insurance claim denials are eating into your bottom line. You know you should be getting paid for a lot of those denied claims, but you don’t have the time or expertise to push back effectively. Don’t stress – some strategies can help you turn the tide on denials without breaking the bank. In this article, we’ll walk through five proven techniques to get you the reimbursements you’ve rightfully earned while keeping your practice running smoothly.
The Challenges of Medical Claim Denials for Small Practices
As a small practice, you likely handle billing and claims in-house. This means claim denials can hit you hard.
- Lack of dedicated staff – With only a few employees, you may struggle to keep up with the time-consuming appeals process.
- Complex payer requirements – Each payer has their own rules around coding, documentation, and billing procedures. Keeping up with them all is tough.
- Revenue loss – Denied claims mean lost income for your practice. For small operations, every dollar counts. According to surveys, nearly 60% of denied claims are not re-submitted.
To overcome these challenges, focus on prevention. Double-check patient insurance eligibility and your billing procedures. Get staff proper training on medical coding and payer requirements.
You should also appeal denials whenever possible. Don’t just write off the lost revenue. Do some research to determine if the denial was truly warranted or if you have a case to overturn it. If needed, get help from a medical billing company. They have the expertise to help you reduce denials and win more appeals.
With hard work and persistence, you can decrease denials and protect your bottom line. Staying on top of the evolving rules of the healthcare system isn’t easy, but for the financial health of your practice, you must make claim denial management a priority.
5 Effective Strategies for Managing Claim Denials
As a small practice, staying on top of claim denials is crucial to your financial health. Here are five key strategies to help you effectively manage denials:
- Follow Up Immediately – As soon as you receive a denial, investigate why it was denied and take action. Call the insurance company for clarification if needed. The quicker you respond, the better your chances of getting it resolved.
- Check Eligibility and Benefits – One of the top reasons for denials is eligibility issues. Always verify a patient’s insurance eligibility and coverage before providing services. Double-check the coverage details to ensure the service is covered.
- Submit Clear Claims – Provide complete claims information, including procedure and diagnosis codes. Any missing or incorrect information will likely lead to a denial. Take time to fill out claims accurately and completely.
- Appeal When Needed – If the denial was made in error, don’t hesitate to appeal. Clearly state why you believe it should be paid and provide any additional information to support your case. Many denials are overturned on appeal, so appeal any denials you believe were made unjustly.
- Track and Analyze – Closely monitor your denial rates and types of denials. Look for patterns to identify trouble areas. Once identified, take steps to reduce denials in these areas through education or process improvements. Reducing your overall denial rate will positively impact your revenue.
Staying on top of denials takes time and effort but will pay off significantly for your practice in the long run through reduced lost revenue and increased efficiency. With the right strategies and persistence, you can effectively manage denials.
How Medical Billing companies Can Help Small Practices?
If you run a small medical practice, you likely have many questions about outsourcing your medical billing. Here are some common FAQs and how a medical billing company can help.
- Will outsourcing billing compromise patient privacy?
Absolutely not. Reputable medical billing companies follow HIPAA guidelines to keep patient data private and secure. They use encrypted software, secure file sharing, and train staff on privacy protocols. Outsourcing to a professional service may provide better security than handling billing in-house.
- Can a medical billing company actually save me money?
Yes, medical billing companies can reduce costs for small practices. They have efficient systems and trained staff to minimize claim denials and maximize reimbursement. Their specialization means they get claims paid quickly and accurately. Practices see a return on investment through reduced costs and increased revenue.
- What exactly does a medical billing company do?
Medical Billing companies handle the entire revenue cycle process. They collect patient demographics, verify insurance eligibility, submit claims, follow up on denials, process payments, and generate reports. This lifts the burden from your practice so you can focus on patient care. Medical Billing Companies use the latest medical billing software and coding resources to streamline the process.
- How do I choose a medical billing company?
When comparing services, check their experience, credentials, services, reporting, and pricing. See what specific services they offer for small practices. Read online reviews from their clients. Once you’ve narrowed down your options, many companies offer a free initial consultation to determine if they meet your needs. You want a vendor that will become a long-term partner in your practice’s success.
In summary, professional medical billing services can save you time and money while optimizing your revenue and allowing you to focus on patient care. By outsourcing this key function, you’ll gain peace of mind and support the growth of your small practice.
AnnexMed has over 18 years of experience in handling end-to-end RCM for small practices. Contact us today for a quick consultation on how we can improve collections for your practice.