How To Deal With Not Receiving The Right Payment As A Healthcare Provider
Many hospitals and healthcare systems face the problem of revenue leakage. Revenue leakage refers to the loss of revenue in an industry. It is important to note that many industries end up losing 10% of their annual income due to this reason. Financial managers consider this to be one of their biggest challenges. However, by employing the right revenue cycle management strategies, many health organizations can recover their losses. This article discusses ways for healthcare providers to deal with not receiving the right payment.
Make Sure You Have The Right Patient Information
More often than not, the payment claims are declined because the patient information is not correct. Due to human error, it is possible to get the wrong spelling of the name. You can opt for practices like photocopying the ID of all patients, verifying patient information, thoroughly checking the insurance card, and evaluating what is covered by the health insurance company and what isn’t. Taking these simple but significant steps would help you reduce the cases of rejections.
Make Payments Accessible For Everyone
Many times, healthcare organizations limit their prospects of getting paid by offering a limited number of payment options. For example, many companies don’t accept different kinds of credit cards or don’t have any payment plans. Due to the lack of accessibility, the risk of Healthcare Revenue Leakage increases manifold as many customers are forced to not pay upfront. People who do not pay upfront are 50% more likely to not pay their medical proceedings. You can make the payments more accessible by increasing your payment opportunities and creating payment plans. This will significantly help you reduce revenue leakage.
Reduce Claim Denials
You can reduce the claim denials by employing an evaluation system. Often, claims are denied because of incomplete patient information, patient ineligibility, duplicate claims, partial service information, insufficient plan information, medical coding errors, etc. All of this could be avoided by having an efficient check system to oversee all the details and evaluate whether they are correct or not. You can learn the most common reasons why claims are denied and work to fix those issues.
According to a report by the American Medical Association, the cost per physician’s burnout is estimated to be around $500,000 to $1 million per year. This is because it takes a lot of time and effort to find another doctor when a burned-out doctor takes a sudden leave or time off. Burnout is also the reason why many doctors become inattentive, careless, or frustrated with their job. It also leads to medical errors, malpractice and hence, increases expenditure for the hospital. Moreover, all this can lead to a lower patient satisfaction rate, which means that your hospital will be getting fewer patients and hence, lower revenue.
If you want to deal with revenue leakage in your healthcare organization, it is crucial to follow the steps discussed in this article. This will help you minimize patient dissatisfaction rates while increasing profitability. You can opt for other practices like automating your inventory, rescheduling payments, following up with patients regarding the costs, etc. Employing these strategies will certainly help you receive payments on time.