1. Claims are not submitted on time
Professionals who outsource medical billing understand the system and have a knack for submitting claims accurately and as quickly as possible. This ensures that you get your payments on time and don’t have to wait months to receive what’s yours.
2. Coding problems lead to rejections
Coding issues are one of the leading causes of claim rejections and thus claims loss. Outsource medical billing services have first-hand knowledge of codes and filing procedures to ensure that all medical claims are not only filed on time, but filed correctly.
3. Outsourcing helps overcome common claims hurdles
A plethora of challenges often arise when considering medical billing and claims filing. Common issues that can cause claims to go unpaid or forfeit include:
4. Patient information inaccurate or not updated.
5. Claims are submitted and processed in the wrong place.
6. Patients can’t afford or don’t want to pay, so the company inherits their liabilities.
7. Patients can be held liable for services covered by their insurance. This leaves you, the doctor, to do a lot of the financial logistics, issue invoices and follow up.
8. Debt collection agencies can give your business a bad image and PR
While some organizations and medical institutions may choose to use collection agencies to recover their money from patients, it is imperative to note that these agencies can be detrimental to patient relations and corporate image, taking up to 50 percent of the money collected can cost. Outsourcing medical bills and claims can help manage cases like this effectively and ensure your business isn’t on the losing side.
9. Minimize unnecessary financial impact on your business
According to aggregate sources, properly prepared claims can take anywhere from 30 to 120 days to receive attention from insurance companies, Medicare, or Medicaid. Sometimes doctors have no choice but to borrow money to cover the direct costs of the business, waiting for payments to come in weeks, months, or even never to come back.
10. Collapsed Claims Disclaimer
As mentioned above, the rate of rejected claims is 30 percent. Outsourced medical services have shown a huge turnaround with claims, demonstrating their ability to reduce rejected claims to an enviable 2 percent
11. Reduce financial losses
With professionally handled medical bills, claims and payments, your company can ensure that it receives the patient’s monthly payments as they are due for their outstanding balances and debts to your company at the time the services were rendered.
You can also collect old debts instead of full forfeiture without legal fees or a collection agency.
If you’ve practiced and billed third parties for patient visits, consultations, treatments, and other medical services or products, chances are you’re already familiar with these hurdles. Sometimes doctors don’t recognize the massive cash crunch that the costs of medical bills, forfeitures, and claims denial are piling up on their businesses. Outsourcing, on the other hand, gives doctors a way to use professional billing services and medical claims for their business to mitigate discrepancies that can delay, reduce, or prevent payments altogether.
Right now, industry rejections are limited to about 30 percent. Due to the volume of claims submitted and handled, even the smallest errors can lead to rejections, which is why it is imperative to use outsourced services to ensure perfection in the handling of medical bills and claims. According to Keith Borglum, owner of Management and Marketing, Santa Rosa, CA, a single medical practice recorded a 71 percent error rate in a year, causing the company to post $185,000 in losses.
Outsourcing offers a plethora of opportunities to resolve leaks in your practice that arise from either medical claims, filing errors, evasive patients, or those who simply have no clear means to pay you money to ensure that you are on top of things. keeps water in your medical practice and puts an end to unnecessary costs that can make you lose money.