We all know that rejected insurance claims cost your practice, but how much exactly? An average sized practice generates 200 claims a month and even with a below average denial rate of 8%, 16 claims are rejected monthly. It costs up to $40 per appealed denial, which can run your practice up to $7,680 per year at best! But fear not, we are here to share a few tips on how to prevent claim rejections.
The VisionWeb Insurance Team attended an informative webinar hosted by Change Healthcare about investing in information technology at your practice. Essentially, the more money your practice spends on IT needs, the more efficient it becomes. This in turn can improve your billing and business habits, and increase revenue. Here is a recap of the key points addressed at the webinar and helpful tips that your practice should implement as soon as possible.
In 2002, Medical Economic Magazine mentioned that even when most physician practices have computers, they will still be miles away from being an ultra-efficient paperless office. True enough, ten years later, we are still mired in paper processes. Paper shuffling is a common cause of inefficiency and denials in the billing process. Other reasons include:
Don’t let inefficiency come in the way of your bottom line. Start identifying issues at your practice by:
Most practice management systems maintain a date of entry, date of service, and date of submission that can help you identify the numbers above. As you run through the process, also compare your patient claim filing process to the traditional and best practices cycle.
Things to consider:
We hope that the process of insurance claims at your practice looks more similar to the best practices cycle. But to avoid even dealing with a collection agency and getting straight to an efficient process, here are more features we can learn from the best practices.
Front-End Best Practices
Make sure that this check list is done while the patient is still in the clinic:
Back-end Best Practices
Now that half of the work is already done on the front end, these responsibilities help the back-end finish up the process as quickly as possible.
Remember the inefficiency of paper processes? Let a clearinghouse handle your claims! Electronic remittance saves time and money. Paper claim handling costs $3-$6 per claim, whereas filing them electronically cost $1 or less. Other expenses saved include supplies, postage and labor cost to manually send patient statements.
So now that you know what you need, do you have the resources to help you through the process? Here’s where a VisionWeb's Revenue Cycle Management services and electronic claim filing comes into play.
Using technology can pay off and improve the opportunities in the practice, and for the most part, generate more revenue after operating cost as you increase the amount spent. But also, don’t forget that you are spending the money to implement the technology or outsourced services effectively, so get the most out of your investment.
Keep learning about how to scale your billing. Learn more about RCM services.