The revenue cycle for medical groups seems to get only more complex and difficult to manage.
In our Maximizing Your A/R series, we look at how medical practices can attack revenue shortfalls on more than one front. We already addressed how to use automated billing rules and track late payments to keep more of the money you earn.
In this third of three posts, we take on insurance underpayments.
Leaving $1 of Every $10 You Earn Behind?
Some practices may not realize how much they lose from underpayments. The Medical Group Management Association (MGMA) estimates insurers underpay U.S. practices by an average 7% to 11% . Or, you may know it, but like many medical groups limited by time and other priorities, tracking these payment shortfalls is becoming nearly impossible to do manually.
Get All You’re Due
First off, identifying these underpayments is not always easy. Consider all the variability in different payer contracts. You can provide the same treatment to four different patients in your practice and get reimbursed four different amounts. Sound familiar?
Getting full reimbursement from your insurer contracts is just one way to advance your accounts receivables. Learn more in the “6 Key Strategies for Medical A/R Management.”
