5 common payment posting mistakes!
Mistakes happen, we all know that, but a proper payment posting process is an integral component of any revenue cycle management process. Good payment posting practices should positively contribute to overall key performance indicators for an organization.
1. Failure to identify and process refunds
Quickly detect and reconcile credits to maintain real-time accounts receivable. Credit balances deflate your account receivables due. Leaving open credits can be costly when identifying claims still open on individual accounts that carry credit balances. Reconciling overpayments early in the process ensures there are no future unexpected offsets.
2. Holding EOB’s
Timely cash posting keeps your collections staff working on recovering claims that are outstanding. If there is a pattern of your account receivables department consistently researching claims that have already paid you should reconsider your process. Payments not posted promptly, adversely contributes to the DRO (days receivable outstanding). Delayed payment posting can negatively affect the key performance metrics of your collections department. These delays can lead to discouragement for your collection staff and also misunderstandings with management. Your DRO will vary by payor mix, but the principle of a low DRO still stands.
3. Delaying analysis of non-paid line items
Delaying analysis will quickly lead to additional problematic claims. When you can quickly identify a payer issue, you can resolve it before releasing other claims. It is easy to skip over a line item denial and focus on a complete claim denial. This is a recipe for unnecessary write-offs.
4. Delayed billing of secondary claims
Early reconciliation of primary payments allows you to put a process into motion which allows you to submit secondary claims quicker. Today, more secondary claims are filed electronically and the turn around times are being greatly reduced to the Medicare standard of 14 business days.
5. Delayed patient invoicing
Great lengths are taken to estimate the expected patient due amounts at the onset of each therapy to collect up front, but often subsequent patient invoicing is still required. Promptly posted payments ensure the reduction of patient write-offs. A delayed invoice is out of sight and out of mind for the patient and you can expect they will delay your payment.
When there is a proven process for accurate and timely payment posting monthly revenues should increase. Is payment posting a challenge for your organization? If you have questions or concerns about your process or you are looking for expertise in managing your process contact PRI today for a free consultation and billing analysis?