Every healthcare professional understands how complex is the medical billing process. 73% of healthcare providers say it takes them 30 days or more to get paid in full. Several factors that complicate the payment cycle, including complex HME billing processes and ambiguous communication. The problem is exacerbated by the communication triangle between you, the patient, and the insurance company.
According to industry sources, unfortunately, independent medical practices are still losing up to 30% of potential revenue due to inefficiencies in the HME billing and collection process. This occurs because the rejection and denial rate is still too high. With nearly half of all denials never being worked, resulting in a 5-7% revenue loss. When you have a high number of denials, your revenue can quickly become trapped in Accounts Receivable (AR), causing a serious disruption in your cash flow.
The issue has been further amplified due to the current global pandemic situation. Even the biggest of the providers, those who are having streamlined processes in place, are facing the same labor and financial crunches. Most of the outsourcing firms are unable to provide support at the same pace, as they are also experiencing similar repercussions.
Therefore, Medical providers must pool their resources and establish better systems and procedures to ensure that they are paid efficiently and legally. Also, they can look out for outsourcing firms that are still providing the required support to their clients as always. We hope this blog provides practical advice and guidelines to help you with your collection efforts.
HME Billing and Collections Improvement Strategies
A well-defined collection procedure:
Having a clear collection process in place is one of the best proactive strategies you can use to maximize revenue. A well-defined step-by-step procedure can assist you in ensuring that patients are fully informed about their financial obligations. The following steps should be included in a good collection process. This includes their:
- phone number
- place of employment
- home address
- email address
All these should be included. It’s also crucial to request photo identification at the time of the visit.
Did you know that nearly 80% of HME bills contain errors? Many such erroneous claims are easily denied due to the strictness of insurance policy payments. If your system fails to receive and process these denials quickly, you will not be paid by the insurer. As a result, make sure you have a specific denial management process in place to actively deal with reprocessing claims.
Educate Patients on the Claims Process
Medical staff is devoting a significant amount of time learning about insurance payments. Your patients, on the other hand, must understand how co-pays, deductibles, and other medical billing processes work.
Using simple flyers or banners to communicate HME billing basics to your patients is an effective way to expedite claims processing. You could also set up a dedicated helpline to assist your patients with the payment process.
Choose Effective HME Billing Software
To avoid fighting an uphill battle, consider upgrading to efficient HME billing software. A good medical billing tool can help you reorganize your collections process by tracing pending bills, identifying unpaid payers, and automating the addition of late fees to their bills. This all-purpose approach systematizes your claims processing while putting the onus on your customer to comply.
Keep track of your performance
Investing in good HME billing processes allows you to focus on your job as a medical practitioner with peace of mind. You might have everything to maximize your HME billing collections. However, to be prepared for any eventuality, it’s always advisable to be more proactive in the collection process.
Here’s how you can do it: –
- Stay up-do-date with medical billing rules and coding protocols.
- Identify any problematic accounts.
- Pursue your overdue payments.
- Keep track of your practice’s revenue cycle
What makes Sunknowledge the best in the DME/HME Billing sphere?
Due to the stringent pre-billing services (eligibility, prior DME), Sunknowledge has a 97% first pass collection rate, which is one of the highest in the industry. We eliminate the possibility of claims being denied in the future.
Moreover, even during these emergency times, due to our robust system, we are serving all our clients with the same productivity standard and lowest pricing in the market. Our team can offer any assistance remotely during these pandemic times unlike any other RCM vendors in the healthcare space. We are catering unmatched support with our dedicated resources that are helping providers in the HME DME space.
Our team is available 24×7 for any assistance you may require. All you need is to Contact Us.
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Sunknowledge Services Inc.
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