We all have a bad habit or two. Some people need their daily caffeine fix; others can’t stop texting while they’re driving. While buying a $3 cup of coffee every day may not break the bank, what happens when your practice makes a habit of neglecting to collect $25 copays or forgetting to bill secondary insurance? Even seemingly innocent habits like the following can eventually burn a hole in your pocket.
1. You’re not filing secondary claims
Greenway Health’s survey data indicates that 59 percent of secondary claims are never filed. If 20 percent of a claim is paid by secondary insurance, multiply that portion of the fee by how many patients with secondary insurance you see per year to calculate the long-term hit to your revenue.
2. You’re undercharging
Improving health is your focus, not finances. That said, it’s difficult for a practice to stay in business without cash flow. Coding has become more complex with the transition to ICD-10, and consistently matching the wrong codes for services performed to the diagnosis can add up to significant losses.
3. You aren’t communicating
68 percent of patients do not receive collection letters from their care providers. If your practice does not implement a refined collections process, you’re going to see a hefty negative impact on your revenue stream. A better practice is to collect at the time of service before the patient leaves your office.
4. You aren’t being proactive
12 percent of practices never update their payer fee schedules. If you don’t have visibility into how much you should be paid, you may be leaving thousands of dollars on the table each year.
5. You’re stuck with traditional billing
In-house billing leaves your practice open to numerous hits against your revenue cycle. Staff salaries alone can consume up to 25 percent of practice revenue, regardless of how much you’re collecting.
Kick your bad habits to the curb. Click here to learn how to improve collections, cash flow, and profitability. And check out our infographic on how to assess the health of your medical billing practices.
For more information, click here to schedule a conversation with a Greenway representative.