What comes to your mind? when you hear the term ‘’revenue cycle management’’. What kind of procedure emerges in your vision?. For various individuals, it is denial management. For others, it is the process of coding.
Payment posting is an important function affecting healthcare revenue cycle management although it comes to mind rarely. It can cause an increase in A/R days if this procedure is inefficient.
Role Of Payment Posting In Medical Billing:
It provides a view of your payments and a clear picture of the day-to-day financial stability of your medical facility. It gives the view of payments from patients, insurance payments in EOBs, and insurance checks from ERAs.
Although it is a critical step that can help you to cut your profitability with high labor costs. It also includes deposit functions, posting, and reconciling posting activities with deposits.
In addition to this, it can have a major effect on the overall financial performance, patient satisfaction, efficiency, and other functions of your medical office. It is highly crucial to make this procedure more efficient.
As it helps you to catch the potential issues and provide insights into the daily revenue stream of your practice. Moreover, having an excellent payment posting system can have a positive impact on the economical health of your business.
Significance of Medical Billing Process:
Medical billing plays a significant role in the survival of medical practice. The accuracy and efficiency of your billing procedures determine the success of your revenue cycle.
You can get payments for the rendered services due to efficient medical billing processes. That is how the physicians, healthcare providers, and their staff get reimbursed.
Importance Of Accurate Payment Posting:
Medical billing processes involve several steps so having issues related to them are quite common. Moreover, a large number of medical claims that are processed daily can enhance the chances of mistakes.
Therefore, it is highly necessary to pay close attention to this procedure to reduce the chances of costly errors. Your office team must be diligent to uncover trends behind the rejections for prior authorization, non-covered services, and medical necessities.
A medical facility should have certified billers and coders to handle any issues up to the chain. In addition to this, catching issues quickly makes the whole task optimized from the front-end to the backend office resources.
Does Payment Posting Adjust In the Revenue Cycle?
Regardless of whether you outsource or do billing in-house, cash posting should be a crucial part of the revenue cycle. An efficient payment posting procedure can help you watch daily trends within your practice and identify opportunities to increase revenue.
It is important to get a precise cash posting process in place because it has such high potential to streamline the overall medical billing process or increase profits.
Here are some ways that can make your increase your revenue and make your billing process more efficient:
Patient Responsibility:
Move and identify balances to the responsibility of patient aids to boost faster patient billing.
ERA/EOB Reconcilement and Posting:
Ensure data from both match payments of ERA and EOB.
Adjustments and Write-offs:
Process adjustment, write-offs, and report any irregular contractual adjustments with the payment processing.
Handling Denials:
Reroute and report rejected claims to the appropriate denial management team or coding experts for resubmission to the payer.
Collection Issues:
Provide inputs on trends in rejections, prior authorization, non-covered services, co-payments, or deductibles collection issues at the point of service.
Key Benefits of Payment Posting:
It is a very important component of revenue cycle management and a crucial step in the medical billing process.
An experienced medical billing services understands the benefits, importance, and sensitivity of payment posting.
Hiring a reliable medical billing company can give you relief and provide you access to professionals certified billing experts.
Therefore, it helps you improve your RCM and A/R functions by streamlining the payment posting procedures. It also provides you the following benefits:
- Speed up denial management.
- Keep track of changes in policies.
- Use EHR systems to integrate billing workflow.
- Access to specialized claims posting resources.
Moreover, some more key benefits to accurate payment postings include:
1. Easier to Analyze Your Revenue Cycle:
When the reimbursements are posted to the accounts of the patients. It helps you to notice opportunities for improvements and analyze the healthcare revenue cycle management.
A remarkable analysis provides you the ability to oversee the improvement in the functionality of your A/R department. In this way, you can increase your business’s profitability by maximizing the revenue cycle.
2. Reduces Denial Resolution Time:
Shift your focus from resolving to the prevention of denials. The major tactic to prevent denials is to monitor the guidelines provided by the payers.
As well as by staying up-to-date to correspondence and bulletins that give information about the latest coding and billing rules.
It could be effective if you back out these claims to the insurance payer by correcting them promptly. At this point, it will contribute to your overall A/R days with each passing day your denials go unresolved.
3. Strengthens Present Processes:
The efficiency of medical office staff determines the future of revenue cycle management.
Sometimes management may neglect the fact that their processes may be preventing the revenue cycle from functioning at maximum performance.
Once the problem has been identified, it is necessary to determine the particular processes. That could be added, improved, or removed in order to enhance the effectiveness of the revenue cycle management.
4. Enables Accurate Claims Submissions to Secondary Payers:
Inaccurate payment posting impacts the accuracy of the claim submission process to tertiary/secondary payers. It is possible that the tertiary/secondary payers may get billed out inaccurately.
And the chances are more when the primary insurance payment is not posted accurately.
So, medical practitioners must adopt effective strategies to improve each area of their RCM process. They should stay in compliance with proper billing practices and maximize reimbursements by closely monitoring the RCM.
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