According to CMS, 18% of claims will never be collected. Compound this with MGMA’s claims that payers underpay practices by an average of 7% to 11%, and you have some unsightly statistics that don’t bode well for maintaining a profitable practice.
Fortunately, the right practice management (PM) systems can greatly improve your collections by reducing denials and flagging underpayments.
Better First Pass Resolution Rate
Every denial costs your practice $25 to $30 even if the resubmitted claim is eventually accepted. So it’s crucial to get claims approved the first time around.
A first-rate PM system helps reduce common errors that trigger denials with features like code scrubbing. Keep in mind that vendors must regularly update these kinds of claims checking apps to adjust for new billing regulations like the upcoming ICD-10 implementation.
Less Underpayments
Practices are so inundated with individual payer contracts it’s difficult to keep track of them all. This makes it easy to overlook underpayments by certain payers.
A good PM system will have a contracts application that automatically compares the amount of payment received to the agreed-upon contract rate. The system then alerts you when the numbers don’t match.
Financial Forecasting
It’s tough to address gaps in the billing process when you can’t identify where the weaknesses are. Your PM system should facilitate this by offering intuitive analytics capabilities.
When a PM system has the ability to generate scheduled reports at dedicated intervals, it allows you to look for areas of improvement and adjust billing practices accordingly.
Due to declining reimbursements, practices are becoming less profitable than ever. Don’t allow a faulty billing process to exacerbate the problem. Choose a PM system that will maximize your practice’s profitability.
If you’d like to find out how our web-based PM system can boost your bottom line, please contact us at 1-877-342-7517 or hello@carecloud.com.
A version of this article was originally published on our sister site, Power Your Practice. Click here to read the original story.
The material and information contained on this website is for general information purposes only. You should not solely rely upon the material or information on the website as a basis for making any business, legal, medical, or any other decisions. While we endeavor to keep all information up-to-date and correct, all information in this site is provided "as is," and CareCloud Corporation and MTBC Inc. make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the information contained on the website for any purpose. Any reliance you place on such material is therefore strictly at your own risk.
