The healthcare economics scene is more daunting than ever. Rocketing healthcare costs have placed medical practices in a precarious position as rising costs outstrip revenue growth. A recent MGMA poll reported that a staggering 90 percent of medical practices said their costs are escalating faster than their revenues, while only 10 percent claimed to be on par or ahead of this financial race.
The overlooked revenue opportunities are the quiet aggravator of the situation. This is because, besides rising costs, practices grapple with the financial impact that these rising costs are likely to bring. Missed opportunities for revenue mean those sources of revenue go unnoticed, resulting in huge financial leakages in your DME billing. This is detrimental to profitability and may wreak havoc on cash flow. By identifying and addressing these hidden revenue sources proactively, medical practices can effectively boost their overall revenue cycle and strengthen their financial standing. This article discusses some of the most commonly ignored revenue opportunities and provides strategies to fill these gaps and ensure a seamless DME billing transaction.
The Power of Timely Billing
The heartbeat of revenue streams is billing, and timing is everything. If the billing process is delayed or the rejections are not dealt with promptly, it results in revenue hemorrhage due to incomplete DME filing of denials.
To avoid this loss, medical practices need to focus on the speedy processing of charges and correct posting of payments. This directly affects the billing schedule of patients. Delayed and incorrect billing not only annoys patients but also puts practices at a disadvantage since timely vendors get priority, while tardy invoices are overlooked.
It ensures capturing all possible revenue opportunities if billing processes are streamlined by paying attention to accuracy and timeliness. Payment posting on a daily basis helps in the efficient management of secondary billing, claims, and denial resolution.
Denial Management Code Breaker
Effective DME denial management is a linchpin of revenue cycle success. Every denial represents an opportunity to recover revenue, and leaving them unresolved costs $25.20 per denial on average. Accurate capture of denial codes and development of Corresponding Follow Up Reason Codes (FURCs) are necessary for targeted resolution. Each denial code has its own resolution process, and practices must develop workflows for each FURC to ensure efficient handling of denials.
Poor workflows lead to loss of revenue and inefficiency in operations. Quick fixes without solving the root causes of denial only exacerbate the problem. In this respect, practices must categorize denials, assign relevant FURCs, and put in place an intense process for the proper handling of denials. Proper staff training will ensure that the denials are managed properly and the new workflow flows smoothly.
Use of technology
Properly harnessed, technology can be a boon to revenue cycle management. But when misused or poorly configured, technology can compound the problems in revenue management. A system that doesn't have logical workflow prompts or consistency in processes leads to missed revenue opportunities.
Practices should engage with technology vendors for optimization consultations to ensure that their system is configured for maximum efficiency and automation. This results in a harmonious integration of billing, claim management, and denial resolution, minimizing errors and enhancing information flow.
Also, delayed billing to patients, communication failure, and follow-up mistakes may dent patient satisfaction. In case the staff does not know the policies and procedures, trust between patients and the practice breaks down. This may lead to broken relationships, high turnover rates, and significant losses in revenue.
This can be mitigated by proper education of staff. Training sessions regarding policies and procedures empower staff members to handle issues in the right manner. Policies displayed in the office and effectively communicated to patients provide a transparent foundation. Practices can retain patient trust by nurturing timely billing practices and delivering excellent customer service, preventing payment delays and disputes.
Sun Knowledge : the ultimate solution to timely DME billing filing:
This is an extremely challenging task of uncovering hidden revenue streams spread all over the revenue cycle. Financial health is, therefore, achieved by taking on these overlooked opportunities head-on. By putting together strategies for managing delayed billing, streamlining denial processes and optimizing technology in fact can put an end to revenue leakage and get them on a road to financial resilience. And all this is possible if you have the right operational extension by your side. Offering you with customized solutions according to your billing requirements, Sun Knowledge for the past 15+ years has been the leading RCM expert. Taking care of both pre and post dme billing solutions, our experts guarantee the highest productivity metrics without compromising on billing standards at a cost effective rate. Remember, these missed opportunities are often found in the nooks and crannies of the revenue cycle, and head-on battles with them will result in a healthier bottom line and a brighter future, so partner with us now and your reimbursements delays.
