Revenue Cycle Tips pulled from the Medical Business Journal (MBJ)
Posted: Oct 01 2014
One of the most important aspects of a successful medical practice is the revenue cycle and knowing how to manage it effectively.
The revenue cycle management world is so tricky. Just because a physician provides excellent service, has a great bed-side manner, and is well respected in the industry doesn’t mean that their practice isn’t losing out on missed revenue opportunities. Here are some tips for revenue cycle best practice.
- Make sure the demographics are accurate.
- Verify eligibility prior to patient’s appointment to identify financial obligation.
- Collect all copays, deductibles, and balances at the time of visit.
- Develop a financial policy regarding patient payments. Developing an office policy is important in ensuring that all patients under-stand their responsibility. Your policy should outline the exact process which will be followed, should the patient refuse to pay on their account.
- Generate clean claims for faster payment by making sure all vital information is on each claim (e.g. accurate diagnosis, CPT, and modifiers).
- Make sure charge lag time is less than 1(one) business day.
- Post payments accurately to ensure claim is paid at 100% of allowable. This can be accomplished by setting the fee schedule for each payer.
- Patient responsibility billed as soon as it dropped to self-pay.
- Claims follow-up should be within 45 days of open claim.
- Aged receivables above 120 days should be 10% of your total accounts receivable.
Click here to learn more about the Medical Business Journals (MBJ).