Challenges of Accounts Receivable in Orthopedic Billing
Accounts Receivable (AR) is an important aspect of orthopedic billing, as it refers to the amount of money owed to an orthopedic practice by its patients and insurance companies for services rendered. However, managing AR can be challenging and can create several obstacles for an orthopedic billing process. Some of the common challenges of accounts receivable in orthopedic billing include complex billing requirements, denied or rejected claims, coding errors, inaccurate patient information, and delayed payments. Reducing accounts receivable in orthopedic billing can be challenging as it requires a dedicated team of billing professionals who can navigate the complexities of insurance billing who can identify and resolve coding errors and effectively manage delayed or denied payments.
Reducing Accounts Receivable in Orthopedic Billing
Reducing accounts receivable in orthopedic practice requires a strategic approach that involves implementing effective billing and collections procedures, optimizing revenue cycle management, and improving patient communication. Following are some specific steps that can help:
Verify Insurance Coverage
Always verify patient insurance coverage before every single appointment and ensure that all necessary authorizations are obtained before services are rendered. Verifying insurance coverage includes varies steps like verify patient information, check for coverage limits, and check for prior-authorization requirements. This will help to avoid any delays or denials of claims, reduce the number of accounts receivable and will ensure timely payments.
Denial Management
Regularly monitor your claims and review any denials to identify trends and areas for improvement. If a claim is denied, appeal it promptly with supporting documentation. Accurate and complete documentation is the first step to reduce claim denials in orthopedic billing. Make sure that all the information in the claim is accurate and up-to-date, including patient demographics, insurance details, and the diagnosis and treatment codes used. Also use the correct diagnosis and treatment codes when billing for services. Stay updated with the latest coding guidelines and ensure that all codes used are supported by the documentation. To reduce claim denials, stay up-to-date with the latest industry changes and billing regulations, including any changes to coding and billing rules.
Provide Clear Payment Information
Provide patients with clear information about their financial responsibility and payment options before they receive services. Make sure that your patients understand your payment expectations before they receive any services. Clearly state what services are covered by insurance, what the patient’s out-of-pocket expenses are, and when payment is due. This can be done by providing patients with a payment policy and/or a fee schedule. This can help to reduce confusion and improve collections.
Collect Payment at the Time of Service
Collecting payment at the time of service is crucial for any orthopedic practice to ensure steady cash flow, reduce bad debts, and improve overall financial performance. As co-pays are a patient’s responsibility, collecting them upfront ensures that you are paid for this portion of the bill. You can also collect any other out-of-pocket expenses at the time of service. Explain your payment policy to patients before the appointment. Let them know that payment is due at the time of service and what payment methods you accept. Explain to them the importance of paying upfront and how it can benefit them, such as avoiding surprise bills and reducing their overall healthcare costs.
Offer Payment Plans
Offer patients different payment options, such as credit cards, debit cards, and cash. Offering payment plans can help patients who cannot afford to pay their bills in full. This can help reduce the number of unpaid bills and can also help retain patients who may otherwise seek care elsewhere. When offering payment plans, it is important to clearly state the terms and conditions, such as the length of the payment plan and any interest or fees that may be charged. This can help to reduce the amount of outstanding balances and increase cash flow.
Above mentioned steps will help you in reducing accounts receivable in orthopedic billing. If you are short on manpower or don’t have skilled orthopedic coders and billers, we can assist you in reducing your accounts receivable. Medisys Data Solutions is a leading medical billing company providing complete billing and coding services for various medical billing specialties. Our experienced orthopedic coders and billers will ensure accurate insurance reimbursements for delivered services. To know more about our orthopedic billing and coding services, contact us at info@medisysdata.com / 888-720-8884
