Creating a stable and healthy revenue cycle is essential for medical facilities of any size and shape. Healthcare facilities and medical practices benefit from studying every step in their revenue cycle and identifying ways to improve their processes so that they can be paid more quickly.
Medical Coding is an essential and complex component in the revenue cycle, and if done incorrectly, can have unintended negative effects on your financial results.
Getting the proper reimbursement is 100% dependent on the accuracy of the medical code. However, some companies ignore the whole process.
Ensure the accuracy of your medical code, as it will result in immediate and long-lasting positive effects on the revenue stream.
Here are a few methods to do it.
Fewer denied claims
Denied claims are now increasingly important hindrances to well-functioning revenue cycles. According to some estimates, denial management costs hospitals about $262 billion a year, and medical practices up to $20 billion per year due to delayed or unpaid reimbursements.
Correctly recording the services rendered to patients via coding leads to proper reimbursement. Without accurate coding, claims for rendered services could be rejected or delayed.
In addition, healthcare coding is confronting new, complicated problems due to changing regulations and payment requirements, including codes specifically targeted at payers designed to cause denials.
If you consider that 68 percent of hospital denials are due to inaccurate codes, it’s evident that accuracy must be at the center of any company’s administrative team.
Accurate medical coding plays a pivotal role in helping providers increase medical practice revenue, by ensuring every service rendered is accurately documented and billed. When codes align with payer guidelines, claims are more likely to be approved on first submission, reducing delays and denials and thus speeding reimbursements as well as administrative costs associated with reworking rejected claims. Ultimately, improved coding accuracy leads to stronger cash flow, better resource managemen,t and a financially sustainable practice.
Improvement in the speed of payments and cash flow
A better denial management system, fewer rejected claims, and fewer days of A/R billing help organizations increase both their payment speed and cash flow.
The average turnaround time for programming for coding is 4.1 days. If teams can turn their coding around in minutes rather than weeks, they can tackle potential denial flags, additions, or updates to documentation more immediately and with greater clarity.
Additionally, the collection process takes a lot of time. Utilizing the assistance of an automated medical coding company ensures accuracy and eases the burden of time.
With more time during the day, companies can focus on making improvements (not just in the billing or coding sector) that will improve and streamline the payment process.
Easier revenue forecasting
Correct and secure medical coding can create a cascading effect that reaches every aspect of the cycle, including the ability to predict future earnings accurately.
When companies can analyze accurate information on expenses, write-offs, and reimbursements, they can better anticipate and predict how their finances will develop.
After analyzing the data which they are able to make more informed business decisions about recruitment, outreach to patients, products, and services, without affecting their bottom line.
Ensure proper reimbursements
More than denied claims, incorrect codes can lead to the loss of charges, leading to a loss of revenue for your business. Payors aren’t able to pay for services that you didn’t record initially!
The fatigue of employees plays a major part in these events. Coders are likely to review hundreds of pages of health records every day, which can lead to errors and misspelled codes that cause revenues to “fall through the cracks.”
To reduce fatigue and ensure that services are properly remunerated, Numerous companies employ solutions like medical coding automation or full-service coding services to relieve some of the burden from their already busy staff.
