Healthcare providers often wish that their Revenue Cycle Management process (RCM) would give a 100% rate of claims payment and 0% of claim rejections, but this is not true in the real financial world. However, the good news is that RCM processes can be fortified by recognizing any issues beforehand for the cycle to run smoothly and give your medical benefits the right profits.
How common is the issue of claims denial and rejections?
An American Academy of Family Physicians (AAFP) report, revealed that claims rejections in the healthcare industry have an average between 5-10%. Claim denial and rejection is one of the major financial trials faced by every hospital system which can be caused by the minutest of coding errors. To avoid such billing errors clinics deploy a Billing Services EMR Software solution.
3 Strategies to prevent claims denial and rejection
According to a 2014 Advisory Board study, 90% of claims denial can be easily prevented by making a few alterations in the way claims are handled and this is linked to effective management of the Revenue Cycle Management process.
- Prevention– It is advised that the financial management should be focused to prevent claims denial as to avoid managing denials later. The management should consider different ways in which RCM can be optimized to reduce any probability of financial errors.
- Automation– automation and digital workflow can save time and money by reducing administrative costs. Practices can deploy a Revenue Cycle Management (RCM) software solution to reduce manual errors and enhance workflow efficiency by identifying improvement opportunities across the revenue cycle which can ultimately give you fruitful financial gains. By automation, claims processing can be optimized and greater revenue can be captured.
- Integration – The claims management process should be streamlined proving easy access to real-time analytics. The valuable data from analytic tools help to avoid the issue of denied claims and coding issues.
Final Takeaway
If your medical practice hasn’t automated its financial processes then they should not wait out. Make sure that when you make your final software purchase it is ONC-ATCB certified. The RCM Software vendor should offer the right features and tools such as; claims management, claim to scrub, and compliance with ICD-10, processing of medical payments, and accounts receivable management. Software technology solutions help to support the smooth running of revenue cycle management processes which can get you faster payments and be great for your financial health.
