Where Have You Been All My Life?! 5 Things To Know About Medical Billing Software.
I recently read an article over my morning coffee by Becker’s Hospital Review that said 55% of healthcare organizations lack a data analytics solution to improve their revenue cycle. One of the survey findings was that the majority of these organizations simply feel that they don’t need one.
Yikes, what an oversight! Even if your organization is profitable, what you probably don’t know is that doctors alone leave approximately $125 billion on the table each year due to poor billing practices. Yep, you read that right.
Believe it or not, that’s only a small piece of the "loss" pie, if you will. In reality, even the best healthcare facilities that have "home grown" billing software lack the continuous improvements needed to have an effective system. When a billing system is outdated, the practice will in turn suffer from billing mistakes – mismatched procedures leading to lengthy claims processes, failure to collect co-pays, forgetting to stay current on coding, the list goes on and on and on... You get the point. All things leading to inefficiency and lost revenue. At the end of the day, efficiency of your billing operations has a critical impact on financial performance.
So, do you still think your organization doesn’t need billing software? Maybe not… But as the saying goes, knowledge is power, and if you lack the knowledge to know exactly how billing software will improve your systems and bottom line, you’ll never realize your full potential to improve and earn. Let’s look at the basics, shall we?
Workflow Automation. Especially when faced with high volume, complex revenue cycle workflows, automation is essential – from the moment a patient steps into the front office to actually receiving payment. Automated billing identifies billing errors before a claim is even submitted, leading to cleaner claims and faster turnaround. Not only that, payments can be posted automatically to expedite the billing cycle.
Turnaround Time. The speed and efficiency at which you turn claims into cash is a big determinate of whether or not a practice will thrive. The more optimized your submission practices, the shorter the cycle and the better your chances at a successful first pass payment will be. On the other hand, patient self-pay (including co-pays, deductibles, etc.) provide a large portion of patient services revenue. Your ability to collect on those balances in a timely manner drastically influences your bottom line. With the correct practice management system in place, coupled with staff capabilities, it’s possible to reduce lifecycle and advance your collection management on insurance, denial and patient claims.
Data Analysis Tools. Even if your practice is profitable, there are probably cashflow kinks and untouched revenue streams that you’re unintentionally missing. With the right analytics in place, you can identify your practice’s strengths and cashflow weaknesses, while identifying gaps and potential revenue streams.
Built-In Security. Medical billing software provides patient information security that is HIPAA compliant. You can access clinical data, financial transactions and insurance information instantly and securely while staying up-to-date with the latest federal regulations.
Cost/Time Reduction. Billing software has the ability to allow for up to 70% of the billing process to be hands-off. Basically, the software does all the heavy lifting for you – the company invests a lot of time researching and training to keep software as highly automated as possible. Your staff no longer needs to spend long hours on data entry or claim submissions. This also means you won’t have to spend the time or money hiring extra hands in the future.
Medical billing software improves cash flow, simplifies processes and streamlines billing workflow. Essentially, your organization is paid faster and more often. Now that you know, are you experiencing that "Where have you been all my life" moment? Yeah, that's the difference between life with vs. without billing software. The more you know!
Going to the HBMA Fall Conference? We'll be there! Join us at booth #512 and get to know ImagineSoftware. We'd love to hear your thoughts on our posts and the world of medical billing software. Click here for a full list of events we're attending throughout the year.