In recent times, physicians and healthcare facilities have been facing a major hassle – underpayment by insurance companies. Finding the reason for the underpayment is not an easy task! The physician or the facility has to go back to square one to re-assess every aspect of the billing. While equipment, licensing, hardware, software, salary pay-offs etc. squeeze healthcare providers to spend a huge sum, underpayments add to their woes. Additionally, they also make adjustments/write-offs of patients’ balance. Is there a better solution other than outsourcing medical billing and collections to eliminate all the above mentioned issues? Definitely not!
In-house Billing: One of the major reasons for underpayment is in-house billing. Physicians and healthcare facilities are under the impression that taking up billing and coding functions in-house can reduce expenditure. However, the simple fact is that it worsens the situation. Due to inadequate resources, expert knowledge and technology, the entire process is affected, resulting in poor medical billing and collections. At the end, physicians suffer rejected claims, denials, and underpayments. It badly affects healthcare revenue cycle management.
Under Coding: Coding is the trickiest of all functions involved in the medical billing and collections process. Even a simple mistake can hugely impact the end results. So, how do physicians and healthcare facilities even attempt to take up the effort of coding in-house with so much of compliance and other regulations that are updated constantly. The question remains unanswered. Ironically, it is also a reason for physicians and healthcare facilities being underpaid by insurance companies that result in increased Adjustments/Write-offs.
Eligibility Factors: Yet another root cause for underpayment is patients’ eligibility factors. Most healthcare providers fail to check what healthcare services a patient’s insurance policy covers and how much of them are exhausted. However, in case of outsourced medical billing, the eligibility factors are well checked in advance. As a result, write-offs/adjustments can be minimized.
A good medical billing and coding company must provide all the above mentioned benefits apart from providing the best services! MGSI, a company with 20 years of service based in Tampa, Florida, is one such company that renders high-quality medical billing services to its clients.
Ways to Minimize Write-offs/Adjustments