Accounts receivable on traditional accounts represent a significant portion of the medical industry’s revenue. However, converting that money from potential revenue into actual revenue is a tricky business. The longer a debt goes unpaid, the less it will be paid, so it’s important to properly manage old accounts receivable.
The problem is that collecting old bills, both from insurance companies and patients, takes time. Success requires a system that is implemented by trained staff who understand the billing process and the nature of the payment amounts in claims.
Bill collectors use the techniques of old debt collection agencies to call and harass people with bad credit reports who have failed to pay their medical bills. This requires knowledge of the debt and the ability to explain insurance coverage and the patient’s part of the process to help them agree to pay. However, it also requires a lot of time and effort that internal staff may not have.
Separating the debt collection process from the medical practice by outsourcing it to a medical billing company has been a successful solution for many medical practices.
In addition to the staff who can dedicate entire workdays to old bills, there are several reasons why medical billing companies are better suited to collections, including paying patients and paying for rejected medical bills.
1. Medical billing companies have more resources
Medical billing companies have more resources to help them recover old claims that have been denied by insurance companies. These resources include knowledgeable billing staff, software that can track claim status and the claims process, and relationships with insurance companies that allow them to get results quickly.
In-house billing companies may not have access to all of these resources, which can make it more difficult to recover claims. Additionally, medical billing companies are experts in billing and know how to file claims correctly the first time, so they are less likely to be denied. This skill will save you training time and money in the long run.
Due to the high costs, medical billing companies have access to more databases and computers than in-house billing offices. Medical offices should use their computers as much as possible because it is an investment, but keeping computers up to date is part of the normal operations of a good medical billing company.
2. Medical billing companies have more experience
In-house medical billing can handle multiple claims at once. A good health insurance company has the systems in place to process claims that have been denied quickly and efficiently.
They also have the resources to track unpaid claims and handle non-payment or non-payment of claims. This can help them avoid late claims submissions to insurance companies and government agencies, which can be a significant source of lost revenue.
Insurance companies are more likely to work with a collection agency than a door-to-door collection agency. This is because collection agencies are perceived as being more impartial and less biased towards one party or the other. All of these factors combined make it more likely that a medical billing company will be used to recover old debts than a home-based credit card company.
Their staff will have extensive experience navigating multiple systems and all the features and requirements of each system, which can lead to a higher percentage of claims.
3. Medical billing companies are more accurate
Medical billing companies have more experience and expertise when it comes to filing and tracking denied medical billing claims, so errors are less likely to occur. Their experience with claim denials gives them a better understanding of how to work with insurance companies and payers.
Professionals also know what to look for when a claim is denied and how to resolve the issue in each situation. Insurance companies change their policies all the time, and staying on top of all the information requires ongoing training.
In addition to denials, health insurance claims are often denied for minor errors such as spelling mistakes or incorrect dates. Professionals know all the little details that can go wrong and have systems in place to quickly resolve or review all claims for errors before they are submitted.
Medical bills are a real headache for professionals trying to manage their finances. It has become a leading cause of early retirement for doctors because it is so frustrating and time-consuming that they feel like they have more time and energy to spend on themselves than on their patients.
There are many factors involved, including responsibilities, and the entire process is incredibly time and energy-consuming. Medical billing companies are staffed with professionals who are passionate about managing debt and have years of experience in the field, so the process can be smooth and hassle-free.
Whether you hire a debt collection agency or a full-service medical billing company to handle your old bills, the more money you will make and the less hassle you will have.
One thing to keep in mind when considering hiring someone to manage your legacy accounts is that you can outsource that work first, and if all goes well, you can choose to outsource all of your accounts. By working with a company that handles all aspects of healthcare revenue cycle management (RCM), you can choose to make the transition easier because your systems are already integrated.
At MedEx MBS, many of our clients have made this transition and found the process to be very smooth. All of the research only needs to be done once, without having to repeat the entire process. The process when looking for a service provider to supplement billing, financing, or other RCM services is available.
How MedEx MBS helps healthcare providers with Accounts Receivable
There are two types of receivables from healthcare organizations: reimbursement from insurance companies or government payments, and the portion of the payments that are made by the patient. The procedures for the two types of receivables are different, but both are handled by healthcare billing companies.
Healthcare revenue management (RCM) covers the entire financial cycle, from determining insurance coverage and patient responsibilities to billers and collecting out-of-pocket payments from patients. With rising costs and declining reimbursement rates, it is increasingly important for clinics and hospitals to collect payment for each service provided, and to keep clinics afloat, payments must be made immediately after the service is provided. Services are provided where possible for payment.
Medical billing codes are complex, constantly changing, and difficult for healthcare professionals to keep up with. Outsourcing companies have become a valuable resource for healthcare organizations, not only for submitting and processing claims but for managing all aspects of RCM.
Here are five ways MedEx MBS can help with the billing cycle.
1. Review of Past Claims:
Most organizations have a large number of past claims, both pending and pending. Even small details, such as a misspelled name or date, can get a claim rejected, so when MedEx MBS begins processing your RCM, we review all outstanding claims and obtain a resolution. Previous customers have been amazed at the additional money we have been able to generate for them because we have experienced billing staff in a variety of specialties who understand the issues and correct the errors.
Denials and denials, and the resulting payment delays, place an unnecessary burden on healthcare professionals, physicians, and clinical and hospital administrators. This can create a vicious cycle where claims are frustrating for staff to ignore, while the loss of revenue creates additional burdens on the practice. Unresolved claims are not trivial.
The Medical Group Management Association (MGMA) found that 50-65% of claims that are denied are not even attempted to be resolved. This means significant financial loss.
2. Billing and Coding Log Storage:
MedEx MBS records all claims, payments, cancellations waivers, and claim settlements. We study the results to analyze trends and determine how to avoid future problems.
3. Review monthly billing:
MedEx MBS not only sends memos when errors are found, but also holds monthly meetings that include all staff involved in billing, including those responsible for dispute analysis, billing, documentation, CPT coding, and data entry. Members. By reviewing services like these and providing ongoing training, we maintain the highest levels of operational efficiency and quality.
4. Dedicated Accounts receivable billing team:
Keeping up with changes in medical billing codes, insurance plans, and government payment laws requires a dedicated staff that can focus on these things. In addition to the most commonly used codes, each industry has its own set of codes that it uses, some of which are very complex. In many cases, such as surgery, the cost is a combination of costs, but a special indication is required if something is done outside of the expected scope of the operation.
The increasing complexity of medical billing requires busy medical practices to seek help with billing and claims processing. MedEx MBS has a dedicated team to track and process denied and denied claims to ensure employees are fully compensated for their services.
5. Information collected from patients in most cases,
when a patient receives medical treatment, they are responsible for paying a portion of the costs in addition to what is covered by the insurance company. This amount should be explained at the time of the appointment so that the patient is not surprised by unexpected costs later. In most cases, the insurance company collects a co-payment amount before the service is provided.
In other cases, the patient pays a percentage of the total cost, so the specific amount is not known until the treatment is completed. The diagnosis can also result in unexpected tests or treatment costs, so patients do not know the full cost in advance.
Medical billing services ensure that claims are properly identified, submitted, and handled with denials and denials – followed by informing patients about payment and payment arrangements. Ensures timely and clear communication with patients so that patients are satisfied that their bills and payments are accurate.
MedEx MBS offers a range of services from patient preparation and insurance validation to RCM for traditional accounts receivable management. With a large billing team and systems developed in the industry for over a decade, our success rate satisfies new clients and encourages them to outsource billing and administrative tasks. Call us today at (838) 202-8406 or request a demo to discuss how we can help your medical practice become more efficient and enjoyable.