Common Medical Billing Mistakes
Medical billing is one of the most important factors in a successful medical practice. Yet, it does not get a lot of focus in med school. One of the biggest challenges facing physicians today on not just patient care, it’s the business of running a practice, especially medical billing.
Medical Billing Challenges
Poor medical billing practices cause medical practices to lose billions of dollar each year. This is a stark reminder for physicians that providing optimal patient care is only one of the big factors in becoming a successful in the industry. The two primary causes contributing to the loss in profits are billing errors and failure to stay up to date on medical billing rules and regulations.
Insurance companies are very strict on correct medical billing and coding practices. This means that the smallest mistake can cause an insurance company to reject a medical billing claim. These rejections in turn cause any number of additional steps from fixing the error to submitting the claim multiple times. Medical billing errors can cause a doctor to have to wait several months or more before receiving payment for their services.
Failure to stay up-to-date on medical billing rules and regulations
Medical billing rules and regulations are constantly changing. This requires medical practices to spend time and money on continuing education, software, or staff training to stay current. This can have an effect on productivity.
Outsourcing Medical Billing
Hiring an outside medical billing company may be a good option for medical practices to mitigate these challenges. This option is an effective way to increase revenue and gain control of the situation.
At first glance, this may seem like a more expensive option. However, when you look at the benefits, it may seem more cost effective. Here are some of the benefits of outsourcing your medical billing:
- Because most medical billing services charge on a percent-basis, they are going to be a lot more diligent about faster collections and resubmitting claims. It is in their interest to get the most billing in a short period of time. Additionally, they have dedicated staff to resubmit claims. Your current employees don’t have time to chase down errors and resubmit claims.
- If you were to hire a dedicated employee to manage your medical billing, you would need to consider the costs of training (initial training and updates to rules and regulations), the employee’s salary, benefits, and taxes, as well as compensation for turnover. Using an outside billing service eliminates these challenges. They maintain a full staff and keep them current on all updates.
- The amount of time doctors and nurses spend on billing and staffing concerns can be eliminated. This freed-up time can be used to care for patients – which is why you started your practice.
- Certified billing companies are compliant with the latest health care laws, like HIPAA and the Health Care Reform bill, so your staff can rest assured that the law is being followed.
Maintaining an up-to-date and proactive medical billing practice will help physicians and the health care industry as a whole operate at top potential and eliminate costly errors that inhibit their ability to provide the best patient care.
Hospital Receivables Service, Inc. offers full medical billing solutions for all medical practices including MD offices, ancillaries, and hospitals. We provide billing, insurance collection, early out collection, and bad debt collection. All collectors are properly trained, compliance is enforced, and there is a full time fraud examiner on staff.