Like all businesses, a medical practice needs to keep an eye on its revenue to maintain operations. With recent changes we are seeing within the healthcare industry, it is predicted that $250 billion worth of services could be virtual in the future. In this article, we examine some of the payment and billing challenges that medical practices encounter.
1. Experiencing a High Volume of Insurance Denials
One of the biggest challenges on the revenue side of the healthcare industry is managing insurance claims. With high rates of denials, it can be difficult for practices to stay up to date on billing and coding changes while addressing every denial to obtain reimbursement.
Medical billing companies can provide assistance to practices by analyzing denial patterns, communicating billing and coding changes to providers, and reducing the volume of future denials. In providing this service, medical billing companies have the ability to increase timely collections and maintain a consistent revenue flow for the practice.
2. Challenges with Payment Collections
An efficient payment collection process keeps the flow of revenue consistent for your practice. Healthcare Business Monthly reported that for every $100 owed; healthcare practices only manage to collect $15.77.
The practice should provide training for providers and staff to emphasize how collections affect the practice. Front office staff can then educate patients on payment options. If a practice prefers that financial conversations with patients be handled by the billing service, Tyrus Health can assist in this area by providing patient contact cards that can be given to patients when they have billing-related questions.
3. Mismatching Processes to Billing Solutions
Every healthcare practice has a unique system that can impact the efficiency of payment collections in different ways. The practice must assess the capabilities of its in-house practice management system. Factors such as patient demographics, insurance information, and accounting dispositions should be enhanced to maximize revenue flow.
The practice should start by evaluating the relevance of its policies against the processes that the practice management system has available. Insights from the assessment can help to determine how to streamline the system with internal operations. For example, a new system for the practice may call for staff training to optimize its efficiency.
4. Not Communicating Effectively with Patients
Reimbursement processes put into place at your practice should inspire confidence and make patients feel at ease. Providers and billing services must work together to eliminate bottlenecks and enhance the patient’s experience.
Nearly 50% of patients lack the details behind their medical costs and the healthcare provider can often be the ones to blame. Therefore, it is important to educate patients on how your billing process works. Consider using a patient portal to stay in touch with your clients. The practice may also hire a billing company that can efficiently manage collections and be readily available to answer any questions that patients may have.
5. Using Outdated Payment Platforms
Accepting multiple modes of payment can benefit both the patient and the practice. You can take advantage of various payment platforms to streamline your processes. Another advantage of using a billing services platform is that it makes it convenient to communicate with patients. You can keep track of appointments and send polite reminders when payment is due.
The current value-based model means the practice has to work towards enhancing the experience of the practice. It is also advisable to adopt more efficient payment systems and billing services to maximize collections. Contact Tyrus Health today to learn more about increasing efficiency and revenue for your practice.